Price Oscillator TR### Summary: How to Use the Price Oscillator with EMA Indicator
The **Price Oscillator with EMA** is a custom technical analysis tool designed to help traders identify potential buying and selling opportunities based on price momentum. Here's how to use it:
1. **Understanding the Oscillator**:
- The oscillator is calculated by normalizing the current price relative to the highest high and lowest low over a specified lookback period. It fluctuates between -70 and +70.
- When the oscillator is near +70, the price is close to the recent highs, indicating potential overbought conditions. Conversely, when it’s near -100, the price is close to recent lows, indicating potential oversold conditions.
2. **Exponential Moving Average (EMA)**:
- The indicator includes an EMA of the oscillator to smooth out price fluctuations and provide a clearer signal.
- The EMA helps to filter out noise and confirm trends.
3. **Trading Signals**:
- **Bullish Signal**: A potential buying opportunity is signaled when the oscillator crosses above its EMA. This suggests increasing upward momentum.
- **Bearish Signal**: A potential selling opportunity is signaled when the oscillator crosses below its EMA. This indicates increasing downward momentum.
4. **Visual Aids**:
- The indicator includes horizontal lines at +70, 0, and -70 to help you quickly assess overbought, neutral, and oversold conditions.
- The blue line represents the oscillator, while the orange line represents the EMA of the oscillator.
### How to Use:
- **Set your parameters**: Adjust the lookback period and EMA length to fit your trading strategy and time frame.
- **Watch for Crossovers**: Monitor when the oscillator crosses the EMA. A crossover from below to above suggests a buy, while a crossunder from above to below suggests a sell.
- **Confirm with Other Indicators**: For more reliable signals, consider using this indicator alongside other technical tools like volume analysis, trend lines, or support/resistance levels.
This indicator is ideal for traders looking to capture momentum-based trades in various market conditions.
Analyse basée sur les vagues
Butterfly Harmonic Pattern [TradingFinder] Harmonic Detector🔵 Introduction
The Butterfly Harmonic Pattern is a sophisticated and highly regarded tool in technical analysis, utilized by traders to identify potential reversal points in the financial markets. This pattern is distinguished by its reliance on Fibonacci ratios and geometric configurations, which aid in predicting price movements with remarkable precision.
The origin of the Butterfly Harmonic Pattern can be traced back to the pioneering work of Bryce Gilmore, who is credited with discovering this pattern. Gilmore's extensive research and expertise in Fibonacci ratios laid the groundwork for the identification and application of this pattern in technical analysis.
The Butterfly pattern, like other harmonic patterns, is based on the principle that market movements are not random but follow specific structures and ratios.
The pattern is characterized by a distinct "M" shape in bullish scenarios and a "W" shape in bearish scenarios, each indicating a potential reversal point. These formations are identified by specific Fibonacci retracement and extension levels, making the Butterfly pattern a powerful tool for traders seeking to capitalize on market turning points.
The precise nature of the Butterfly pattern allows for the accurate prediction of target prices and the establishment of strategic entry and exit points, making it an indispensable component of a trader's analytical arsenal.
Bullish :
Bearish :
🔵 How to Use
Like other harmonic patterns, the Butterfly pattern is categorized based on how it forms at the end of an uptrend or downtrend. Unlike the Gartley and Bat patterns, the Butterfly pattern, similar to the Crab pattern, forms outside the wave 3 range at the end of a rally.
🟣 Types of Butterfly Harmonic Patterns
🟣 Bullish Butterfly Pattern
This pattern forms at the end of a downtrend and leads to a trend reversal from a downtrend to an uptrend.
🟣 Bearish Butterfly Pattern
In contrast to the Bullish Butterfly pattern, this pattern forms at the end of an uptrend and warns analysts of a trend reversal to a downtrend. In this case, traders are encouraged to shift their trading stance from buy trades to sell trades.
Advantages and Limitations of the Butterfly Pattern in Technical Analysis :
The Butterfly pattern is considered one of the precise and stable tools in financial market analysis. However, it is always important to pay special attention to the advantages and limitations of each pattern.
Here, we review the advantages and disadvantages of using the Butterfly harmonic pattern :
The main advantage of the Butterfly pattern is providing very accurate signals.
Using Fibonacci golden ratios and geometric rules, the Butterfly pattern identifies patterns accurately and systematically. (This high accuracy significantly helps investors in making trading decisions.)
Identifying this pattern requires expertise and experience in technical analysis.
Recognizing the Butterfly pattern might be complex for beginner traders. (Correct identification of the pattern necessitates mastery over geometric principles and Fibonacci ratios.)
The Butterfly harmonic pattern might issue false trading signals. (Traders usually combine the Butterfly pattern with other technical tools to confirm buy and sell signals.)
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Forma t: If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" to not display the template.
Color : Enter the desired color to draw the pattern in this parameter.
LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness.
LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries.
🟣 Alert Setting
Alert : On / Off
Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
Sylvain Zig-Zag [MyTradingCoder]This Pine Script version of ZigZagHighLow is a faithful port of Sylvain Vervoort's original study, initially implemented in NinjaScript and later added to the thinkorswim standard library. This indicator identifies and connects swing points in price data, offering a clear visualization of market moves that exceed a specified threshold. Additionally, it now includes features for detecting and plotting support and resistance levels, enhancing its utility for technical analysis.
Overview
The Sylvain Zig-Zag study excels at highlighting significant price swings by plotting points where the price change, combined with volatility adjustments via the Average True Range (ATR), exceeds a user-defined percentage. It effectively smooths out minor fluctuations, allowing traders to focus on the primary market trends. This tool is particularly useful in identifying potential turning points, trends in price movements, and key support and resistance levels, making it a valuable addition to your technical analysis arsenal.
How It Works
The Sylvain Zig-Zag indicator works by detecting swing points in the price data and connecting them to form a zigzag pattern. A swing point is identified when the price moves a certain distance, defined by a combination of percentage change and ATR. This distance must be exceeded for a swing point to be plotted.
When the price moves upwards and exceeds the previous high by a specified percentage plus a factor of the ATR, a new high swing point is plotted. Conversely, a low swing point is plotted when the price moves downwards and exceeds the previous low by the same criteria. This ensures that only significant price moves are considered, filtering out minor fluctuations and providing a clear view of the overall market trend.
In addition to plotting zigzag lines, the indicator can now identify and draw support and resistance levels based on the detected swing points. These levels are crucial for identifying potential reversal areas and market structure.
Key Features
Swing Point Detection: Accurately identifies significant price swings by considering both percentage price change and volatility (via Average True Range).
Dynamic Support/Resistance: Automatically generates support and resistance lines based on the identified swing points, providing potential areas of price reversals.
Customizable Parameters: Tailor the indicator's sensitivity to your preferred trading style and market conditions. Adjust parameters like percentage reversal, ATR settings, and absolute/tick reversals.
Visual Clarity: Choose to display the ZigZag line, support/resistance levels, new trend icons, continuation icons, and even customize bar colors for easy visual analysis.
Trading Applications
Trend Identification: Easily visualize the prevailing market trend using the direction of the ZigZag line and support/resistance levels.
Entry/Exit Signals: Potential entry points can be identified when the price interacts with the dynamic support/resistance levels.
Stop-Loss Placement: Use recent swing points as logical places for setting stop-loss orders.
Profit Targets: Project potential price targets based on the distance between previous swing points.
Input Parameters
Several input parameters can be adjusted to customize the behavior of the Sylvain Zig-Zag indicator. These parameters allow traders to fine-tune the detection of swing points and support/resistance levels to better suit their trading strategy and the specific market conditions they are analyzing.
High Source and Low Source:
These inputs define the price points used for detecting high and low swing points, respectively. You can choose between high, low, open, or close prices for these calculations.
Percentage Reversal:
This input sets the minimum percentage change in price required for a swing to be detected. A higher percentage value will result in fewer but more significant swing points, while a lower value will detect more frequent, smaller swings.
Absolute Reversal:
This parameter allows for an additional fixed value to be added to the minimum price change and ATR change. This can be useful for increasing the distance between swing points in volatile markets.
ATR Length:
This input defines the period used for calculating the ATR, which is a measure of market volatility. A longer ATR period will smooth out the ATR calculation, while a shorter period will make it more sensitive to recent price changes.
ATR Multiplier:
This factor is applied to the ATR value to adjust the sensitivity of the swing point detection. A higher multiplier will increase the required price movement for a swing point to be plotted, reducing the number of detected swings.
Tick Reversal:
This input allows for an additional value in ticks to be added to the minimum price change and ATR change, providing further customization in the swing point detection process.
Support and Resistance:
Show S/R: Enable or disable the plotting of support and resistance levels.
Max S/R Levels: Set the maximum number of support and resistance levels to display.
S/R Line Width: Adjust the width of the support and resistance lines.
Visual Settings
The Sylvain Zig-Zag indicator also includes visual settings to enhance the clarity of the plotted swing points and trends. You can customize the color and width of the zigzag line, and enable icons to indicate new trends and continuation patterns. Additionally, the bars can be colored based on the detected trend, aiding in quick visual analysis.
Conclusion
This port of the ZigZagHighLow study from NinjaScript to Pine Script preserves the essence of Sylvain Vervoort’s methodology while adding new features for support and resistance. It provides traders with a powerful tool for technical analysis. The combination of price changes and ATR ensures that you have a robust and adaptable tool for identifying key market movements and structural levels. Customize the settings to match your trading style and gain a clearer picture of market trends, turning points, and support/resistance areas. Enjoy improved market analysis and more informed trading decisions with the Sylvain Zig-Zag indicator.
Price & Momentum Reversal Indicator [TradeDots]Price & Momentum Divergence Indicator is a variant of the Chande Momentum Oscillator (CMO), designed to identify reversal patterns in overvalued and undervalued markets. This indicator aims to mitigate the common problem of all oscillating indicators: false buy/sell signals during prolonged market trends, by incorporating a volume-weighted approach and momentum analysis.
📝 HOW IT WORKS
Price Extremeness Calculation
The indicator evaluates the extremeness of the current price by analyzing price changes over a fixed window of candlesticks.
It separates the price changes into positive and negative changes, then multiplies them by the bar volume to obtain volume-weighted values, giving higher significance to bars with larger volumes.
Extremeness Ratio
The ratio is calculated by taking the difference between the total positive changes and total negative changes, and then dividing this result by the sum of the total positive and negative changes.
The result is then smoothed to reduce market noise and rescaled to a range between -100 to 100, where 100 indicates all price changes within the window are positive.
Momentum Analysis
Momentum is calculated by measuring the rate of change of the smoothed extremeness ratio, indicating whether market extremeness is slowing and showing signs of reversion.
Reversal Signal Confirmation
For an asset to be considered a reversal, it has to be in the overvalued or undervalued zone (exceeding the overvalued & undervalued threshold). It must then show a slowed momentum change and a price reversion.
Lastly, candlestick analysis is used to confirm the reversal signal, ensuring there is no room for further breakout price movement.
🛠️ HOW TO USE
Candlestick Visualization
Candlestick bodies are painted with gradient colors representing the smoothed price extremeness (OBOS Index), ranging from -100 (solid red) to 100 (solid green). The exact value is displayed in a table at the bottom right corner.
Slowing price momentum is indicated with blue (bearish) and purple (bullish) colors, showing market pressure from the opposite side.
Reversal Confirmation
A decrease in price momentum combined with a price reversal triggers a signal label on the candlestick, indicating a potential pullback or reversal. This can serve as a reference for better entry and exit points.
⭐️ Premium Features
Higher Timeframe (HTF) Analysis
The indicator includes a feature to apply the same algorithm to a selected higher timeframe, ensuring trend alignment across multiple timeframes.
Alert Functions
Real-time notifications for overvalued and undervalued conditions, allowing traders to monitor trades and reversal signals anywhere and anytime.
❗️LIMITATIONS
Accuracy decreases in volatile and noisy markets.
Extended bullish or bearish market conditions may affect performance.
See Author's instructions below to get instant access to this indicator.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
All Chart Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws and sends alerts for all of the chart patterns in my public library as they occur. The patterns included are as follows:
• Ascending Broadening
• Broadening
• Descending Broadening
• Double Bottom
• Double Top
• Triple Bottom
• Triple Top
• Bearish Elliot Wave
• Bullish Elliot Wave
• Bearish Alternate Flag
• Bullish Alternate Flag
• Bearish Flag
• Bullish Flag
• Bearish Ascending Head and Shoulders
• Bullish Ascending Head and Shoulders
• Bearish Descending Head and Shoulders
• Bullish Descending Head and Shoulders
• Bearish Head and Shoulders
• Bullish Head and Shoulders
• Bearish Pennant
• Bullish Pennant
• Ascending Wedge
• Descending Wedge
• Wedge
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Measurement Tolerances
Tolerance refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. I have applied this concept in my pattern detection logic and have set default tolerances where applicable, as perfect patterns are, needless to say, very rare.
Chart Patterns
Generally speaking price charts are nothing more than a series of swing highs and swing lows. When demand outweighs supply over a period of time prices swing higher and when supply outweighs demand over a period of time prices swing lower. These swing highs and swing lows can form patterns that offer insight into the prevailing supply and demand dynamics at play at the relevant moment in time.
‘Let us assume… that you the reader, are not a member of that mysterious inner circle known to the boardrooms as “the insiders”… But it is fairly certain that there are not nearly so many “insiders” as amateur trader supposes and… It is even more certain that insiders can be wrong… Any success they have, however, can be accomplished only by buying and selling… hey can do neither without altering the delicate poise of supply and demand that governs prices. Whatever they do is sooner or later reflected on the charts where you… can detect it. Or detect, at least, the way in which the supply-demand equation is being affected… So, you do not need to be an insider to ride with them frequently… prices move in trends. Some of those trends are straight, some are curved; some are brief and some are long and continued… produced in a series of action and reaction waves of great uniformity. Sooner or later, these trends change direction; they may reverse (as from up to down), or they may be interrupted by some sort of sideways movement and then, after a time, proceed again in their former direction… when a price trend is in the process of reversal… a characteristic area or pattern takes shape on the chart, which becomes recognisable as a reversal formation… Needless to say, the first and most important task of the technical chart analyst is to learn to know the important reversal formations and to judge what they may signify in terms of trading opportunities’ (Edwards & Magee, 1948).
This is as true today as it was when Edwards and Magee were writing in the first half of the last Century, study your patterns and make judgements for yourself about what their implications truly are on the markets and timeframes you are interested in trading.
Over the years, traders have come to discover a multitude of chart and candlestick patterns that are supposed to pertain information on future price movements. However, it is never so clear cut in practice and patterns that where once considered to be reversal patterns are now considered to be continuation patterns and vice versa. Bullish patterns can have bearish implications and bearish patterns can have bullish implications. As such, I would highly encourage you to do your own backtesting.
There is no denying that chart patterns exist, but their implications will vary from market to market and timeframe to timeframe. So it is down to you as an individual to study them and make decisions about how they may be used in a strategic sense.
█ INPUTS
• Change pattern and label colours
• Show or hide patterns individually
• Adjust pattern ratios and tolerances
• Set or remove alerts for individual patterns
█ NOTES
I have decided to rename some of my previously published patterns based on the way in which the pattern completes. If the pattern completes on a swing high then the pattern is considered bearish, if the pattern completes on a swing low then it is considered bullish. This may seem confusing but it makes sense when you come to backtesting the patterns and want to use the most recent peak or trough prices as stop losses. Patterns that can complete on both a swing high and swing low are for such reasons treated as neutral, namely all broadening and wedge variations. I trust that it is quite self-evident that double and triple bottom patterns are considered bullish while double and triple top patterns are considered bearish, so I did not feel the need to rename those.
The patterns that have been renamed and what they have been renamed to, are as follows:
• Ascending Elliot Waves to Bearish Elliot Waves
• Descending Elliot Waves to Bullish Elliot Waves
• Ascending Head and Shoulders to Bearish Ascending Head and Shoulders
• Descending Head and Shoulders to Bearish Descending Head and Shoulders
• Head and Shoulders to Bearish Head and Shoulders
• Ascending Inverse Head and Shoulders to Bullish Ascending Head and Shoulders
• Descending Inverse Head and Shoulders to Bullish Descending Head and Shoulders
• Inverse Head and Shoulders to Bullish Head and Shoulders
You can test the patterns with your own strategies manually by applying the indicator to your chart while in bar replay mode and playing through the history. You could also automate this process with PineScript by using the conditions from my swing and pattern libraries as entry conditions in the strategy tester or your own custom made strategy screener.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ SOURCES
Edwards, R., & Magee, J. (1948) Technical Analysis of Stock Trends (10th edn). Reprint, Boca Raton, Florida: Taylor and Francis Group, CRC Press: 2013.
Boost Candle Indicator by JulianThe Boost Candle Trading Indicator is designed to identify significant price movements by calculating the average candle size for the same direction candles (green for bullish and red for bearish) over a specified number of periods. It then highlights candles that exceed a predefined multiple of this average size, indicating potential strong buying or selling pressure.
Key Features:
Directional Average Calculation: Calculates the average size of the previous candles in the same direction (green for buy signals and red for sell signals), ensuring the boost signal is contextually relevant.
Boost Multiplier: Allows customization of the multiplier to define what constitutes a boost candle, providing flexibility in detecting varying levels of price movement intensity.
Proximity to Moving Average: Integrates a proximity check to the moving average (MA), ensuring that boost candles are identified in context with the overall market trend.
Buy and Sell Signals:
Buy Signal: Triggered when a significant green boost candle appears below the moving average and closes above it, indicating a strong bullish movement.
Sell Signal: Triggered when a significant red boost candle appears above the moving average and closes below it, indicating a strong bearish movement.
Customizable Inputs:
Moving Average Length: Adjust the length of the moving average to suit different trading strategies.
Number of Periods for Average Candle Size: Define the lookback period for calculating the average candle size.
Boost Multiplier and Proximity Tolerance: Fine-tune the sensitivity of the indicator to suit different market conditions.
How to Use:
Buy Signals: Look for green labels ("B") below significant bullish candles, indicating a potential upward price movement.
Sell Signals: Look for red labels ("S") above significant bearish candles, indicating a potential downward price movement.
Proximity to Moving Average: Use the proximity tolerance setting to filter out signals that are not closely aligned with the moving average trend.
This indicator is ideal for traders looking to identify strong market movements and align their trades with significant price actions. Customize the settings to fit your trading style and enhance your market analysis.
Harmonic Patterns Library [TradingFinder]🔵 Introduction
Harmonic patterns blend geometric shapes with Fibonacci numbers, making these numbers fundamental to understanding the patterns.
One person who has done a lot of research on harmonic patterns is Scott Carney.Scott Carney's research on harmonic patterns in technical analysis focuses on precise price structures based on Fibonacci ratios to identify market reversals.
Key patterns include the Gartley, Bat, Butterfly, and Crab, each with specific alignment criteria. These patterns help traders anticipate potential market turning points and make informed trading decisions, enhancing the predictability of technical analysis.
🟣 Understanding 5-Point Harmonic Patterns
In the current library version, you can easily draw and customize most XABCD patterns. These patterns often form M or W shapes, or a combination of both. By calculating the Fibonacci ratios between key points, you can estimate potential price movements.
All five-point patterns share a similar structure, differing only in line lengths and Fibonacci ratios. Learning one pattern simplifies understanding others.
🟣 Exploring the Gartley Pattern
The Gartley pattern appears in both bullish (M shape) and bearish (W shape) forms. In the bullish Gartley, point X is below point D, and point A surpasses point C. Point D marks the start of a strong upward trend, making it an optimal point to place a buy order.
The bearish Gartley mirrors the bullish pattern with inverted Fibonacci ratios. In this scenario, point D indicates the start of a significant price drop. Traders can place sell orders at this point and buy at lower prices for profit in two-way markets.
🟣 Analyzing the Butterfly Pattern
The Butterfly pattern also manifests in bullish (M shape) and bearish (W shape) forms. It resembles the Gartley pattern but with point D lower than point X in the bullish version.
The Butterfly pattern involves deeper price corrections than the Gartley, leading to more significant price fluctuations. Point D in the bullish Butterfly indicates the beginning of a sharp price rise, making it an entry point for buy orders.
The bearish Butterfly has inverted Fibonacci ratios, with point D marking the start of a sharp price decline, ideal for sell orders followed by buying at lower prices in two-way markets.
🟣 Insights into the Bat Pattern
The Bat pattern, appearing in bullish (M shape) and bearish (W shape) forms, is one of the most precise harmonic patterns. It closely resembles the Butterfly and Gartley patterns, differing mainly in Fibonacci levels.
The bearish Bat pattern shares the Fibonacci ratios with the bullish Bat, with an inverted structure. Point D in the bearish Bat marks the start of a significant price drop, suitable for sell orders followed by buying at lower prices for profit.
🟣 The Crab Pattern Explained
The Crab pattern, found in both bullish (M shape) and bearish (W shape) forms, is highly favored by analysts. Discovered in 2000, the Crab pattern features a larger final wave correction compared to other harmonic patterns.
The bearish Crab shares Fibonacci ratios with the bullish version but in an inverted form. Point D in the bearish Crab signifies the start of a sharp price decline, making it an ideal point for sell orders followed by buying at lower prices for profitable trades.
🟣 Understanding the Shark Pattern
The Shark pattern appears in bullish (M shape) and bearish (W shape) forms. It differs from previous patterns as point C in the bullish Shark surpasses point A, with unique level measurements.
The bearish Shark pattern mirrors the Fibonacci ratios of the bullish Shark but is inverted. Point D in the bearish Shark indicates the start of a sharp price drop, ideal for placing sell orders and buying at lower prices to capitalize on the pattern.
🟣 The Cypher Pattern Overview
The Cypher pattern is another that appears in both bullish (M shape) and bearish (W shape) forms. It resembles the Shark pattern, with point C in the bullish Cypher extending beyond point A, and point D forming within the XA line.
The bearish Cypher shares the Fibonacci ratios with the bullish Cypher but in an inverted structure. Point D in the bearish Cypher marks the start of a significant price drop, perfect for sell orders followed by buying at lower prices.
🟣 Introducing the Nen-Star Pattern
The Nen-Star pattern appears in both bullish (M shape) and bearish (W shape) forms. In the bullish Nen-Star, point C extends beyond point A, and point D, the final point, forms outside the XA line, making CD the longest wave.
The bearish Nen-Star has inverted Fibonacci ratios, with point D indicating the start of a significant price drop. Traders can place sell orders at point D and buy at lower prices to profit from this pattern in two-way markets.
The 5-point harmonic patterns, commonly referred to as XABCD patterns, are specific geometric price structures identified in financial markets. These patterns are used by traders to predict potential price movements based on historical price data and Fibonacci retracement levels.
Here are the main 5-point harmonic patterns :
Gartley Pattern
Anti-Gartley Pattern
Bat Pattern
Anti-Bat Pattern
Alternate Bat Pattern
Butterfly Pattern
Anti-Butterfly Pattern
Crab Pattern
Anti-Crab Pattern
Deep Crab Pattern
Shark Pattern
Anti- Shark Pattern
Anti Alternate Shark Pattern
Cypher Pattern
Anti-Cypher Pattern
🔵 How to Use
To add "Order Block Refiner Library", you must first add the following code to your script.
import TFlab/Harmonic_Chart_Pattern_Library_TradingFinder/1 as HP
🟣 Parameters
XABCD(Name, Type, Show, Color, LineWidth, LabelSize, ShVF, FLPC, FLPCPeriod, Pivot, ABXAmin, ABXAmax, BCABmin, BCABmax, CDBCmin, CDBCmax, CDXAmin, CDXAmax) =>
Parameters:
Name (string)
Type (string)
Show (bool)
Color (color)
LineWidth (int)
LabelSize (string)
ShVF (bool)
FLPC (bool)
FLPCPeriod (int)
Pivot (int)
ABXAmin (float)
ABXAmax (float)
BCABmin (float)
BCABmax (float)
CDBCmin (float)
CDBCmax (float)
CDXAmin (float)
CDXAmax (float)
🟣 Genaral Parameters
Name : The name of the pattern.
Type: Enter "Bullish" to draw a Bullish pattern and "Bearish" to draw an Bearish pattern.
Show : Enter "true" to display the template and "false" to not display the template.
Color : Enter the desired color to draw the pattern in this parameter.
LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness.
LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries.
🟣 Logical Parameters
ShVF : If this parameter is on "true" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "false" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
FLPC : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the lateest pattern seeing and a sharp reduction in reward to risk.
FLPCPeriod : Using this parameter you can determine that the last pivot is based on Pivot period.
Pivot : You need to determine the period of the zigzag indicator. This factor is the most important parameter in pattern recognition.
ABXAmin : Minimum retracement of "AB" line compared to "XA" line.
ABXAmax : Maximum retracement of "AB" line compared to "XA" line.
BCABmin : Minimum retracement of "BC" line compared to "AB" line.
BCABmax : Maximum retracement of "BC" line compared to "AB" line.
CDBCmin : Minimum retracement of "CD" line compared to "BC" line.
CDBCmax : Maximum retracement of "CD" line compared to "BC" line.
CDXAmin : Minimum retracement of "CD" line compared to "XA" line.
CDXAmax : Maximum retracement of "CD" line compared to "XA" line.
🟣 Function Outputs
This library has two outputs. The first output is related to the alert of the formation of a new pattern. And the second output is related to the formation of the candlestick pattern and you can draw it using the "plotshape" tool.
Candle Confirmation Logic :
Example :
import TFlab/Harmonic_Chart_Pattern_Library_TradingFinder/1 as HP
PP = input.int(3, 'ZigZag Pivot Period')
ShowBull = input.bool(true, 'Show Bullish Pattern')
ShowBear = input.bool(true, 'Show Bearish Pattern')
ColorBull = input.color(#0609bb, 'Color Bullish Pattern')
ColorBear = input.color(#0609bb, 'Color Bearish Pattern')
LineWidth = input.int(1 , 'Width Line')
LabelSize = input.string(size.small , 'Label size' , options = )
ShVF = input.bool(false , 'Show Valid Format')
FLPC = input.bool(false , 'Show Formation Last Pivot Confirm')
FLPCPeriod =input.int(2, 'Period of Formation Last Pivot')
//Call function
= HP.XABCD('Bullish Bat', 'Bullish', ShowBull, ColorBull , LineWidth, LabelSize ,ShVF, FLPC, FLPCPeriod, PP, 0.382, 0.50, 0.382, 0.886, 1.618, 2.618, 0.85, 0.9)
= HP.XABCD('Bearish Bat', 'Bearish', ShowBear, ColorBear , LineWidth, LabelSize ,ShVF, FLPC, FLPCPeriod, PP, 0.382, 0.50, 0.382, 0.886, 1.618, 2.618, 0.85, 0.9)
//Alert
if BearAlert
alert('Bearish Harmonic')
if BullAlert
alert('Bulish Harmonic')
//CandleStick Confirm
plotshape(BearCandleConfirm, style = shape.arrowdown, color = color.red)
plotshape(BullCandleConfirm, style = shape.arrowup, color = color.green, location = location.belowbar )
AI Big Players Move Pattern with Buy/Sell Signals.Big Players Move Pattern with Buy/Sell Signals
Description:
The "Big Players Move Pattern with Buy/Sell Signals" indicator is a powerful tool designed to help traders identify potential market movements driven by institutional investors, also known as big players or smart money. This indicator leverages key patterns such as volume spikes, support and resistance breakouts, and accumulation/distribution trends to generate actionable buy and sell signals.
Key Features:
Volume Spike Detection:
Volume Spike Length: The indicator calculates the moving average of volume over a user-defined period (default: 20 periods).
Volume Spike Multiplier: A volume spike is detected when the current volume exceeds the moving average volume by a specified multiplier (default: 2.0).
Visual Cue: Volume spikes are plotted on the chart with an orange triangle, indicating potential big player activity.
Support and Resistance Breakouts:
Support/Resistance Length: The indicator identifies key support and resistance levels based on the highest highs and lowest lows over a user-defined period (default: 50 periods).
Breakout Detection: The indicator detects and highlights breakouts above resistance levels and breakdowns below support levels.
Visual Cues: Breakouts are plotted with green upward labels, while breakdowns are plotted with red downward labels.
Accumulation/Distribution Line:
Trend Analysis: The accumulation/distribution line is calculated to provide insights into whether a stock is being accumulated (bought) or distributed (sold) by big players.
Visual Cue: The line is plotted on the chart, helping traders understand underlying market trends.
Buy and Sell Signals:
Buy Signal: Generated when a volume spike coincides with a price crossover above the support level.
Sell Signal: Generated when a volume spike coincides with a price crossover below the resistance level.
Visual Cues: Buy signals are plotted with green labels, and sell signals are plotted with red labels.
Alerts:
Custom Alerts: The indicator includes customizable alerts for volume spikes, buy signals, and sell signals, ensuring that traders never miss a significant market movement.
Benefits:
Early Detection: By identifying the activities of big players, traders can position themselves early to capitalize on significant price movements.
Visual Clarity: Clear visual indicators and signals help traders make informed decisions quickly and accurately.
Customization: Adjustable parameters allow traders to tailor the indicator to their specific trading strategies and timeframes.
Use Cases:
Day Trading: Ideal for identifying intraday movements and capitalizing on short-term opportunities.
Swing Trading: Effective for capturing medium-term trends driven by institutional activities.
Position Trading: Useful for understanding long-term accumulation and distribution patterns by big players.
Enhance your trading strategy with the "Big Players Move Pattern with Buy/Sell Signals" indicator and gain a competitive edge by tracking the movements of institutional investors.
Parabolic SAR Waves [MMA]Parabolic SAR Waves
Description:
The "Parabolic SAR Waves " is an advanced version of the traditional Parabolic SAR indicator, customized for TradingView. This script incorporates dynamic acceleration factors and optional gradient coloration to enhance visual interpretation and utility for traders aiming to accurately capture trends and predict potential reversals.
Features:
- Dynamic Acceleration: Adjust the initial, incremental, and maximum values of the acceleration factor to suit various market conditions and trading preferences.
- Gradient Coloring: Use gradient colors to indicate the strength and stability of the trend, providing visual cues that are easy to interpret.
- Trend Visibility: The SAR dots are plotted directly on the price chart, making it easy to spot trend changes and maintain situational awareness.
- Overlay Feature: Designed to overlay directly on the price charts, allowing for seamless integration with other technical analysis tools.
Benefits:
- Trend Detection: Helps in identifying the beginning and potential reversal of trends, aiding in timely decision-making.
- Stop-Loss Management: Utilizes the positions of the SAR dots as dynamic stop-loss points, which helps in risk management.
- Visual Simplicity: Enhances the decision-making process through a straightforward visual representation of trend data.
Parameters:
- Acceleration Start (accel_start): The initial value for the acceleration, set to 0.02 by default.
- Acceleration Increment (accel_inc): The amount by which the acceleration increases, set to 0.005 by default.
- Acceleration Maximum (accel_max): The maximum limit of the acceleration factor, set to 0.1 by default.
- Use Gradient Colors (use_gradient): A boolean toggle to enable or disable gradient coloring, enabled by default.
Indicator Usage:
1. To apply, select this indicator from TradingView's indicator library.
2. Adjust the acceleration parameters based on your specific trading strategy and market analysis.
3. Interpret the indicator signals:
- Green SAR dots below the price bars indicate a bullish trend.
- Red SAR dots above the price bars signify a bearish trend.
- Gradient colors, if enabled, provide insights into the acceleration factor's intensity relative to trend strength.
Alerts:
- Bullish Reversal Alert: Issues a notification if there is a potential upward reversal when the trend shifts to bullish.
- Bearish Reversal Alert: Alerts when there's potential for a downward move as the trend turns bearish.
The "Parabolic SAR Waves " is a robust tool, ideal for traders who need precise, customizable trend-following capabilities that integrate seamlessly with other market analysis strategies. Enhance your trading with detailed trend insights and adaptive parameter controls.
Market Structures + ZigZag [TradingFinder] CHoCH/BOS - MSS/MSB🟣 Introduction
🔵 Market Structure
Grasping market structure entails examining market behavior. Essentially, market structure refers to the formation and progression of the market within its trends.
Market structures are generally fractal and nested, leading us to classify them into internal (minor) and external (major) structures. There are several definitions of market structure, with differing perspectives such as Smart Money and ICT offering their own interpretations.
🔵 Zig Zag
The Zigzag indicator is a lagging tool that identifies points on a price chart where significant changes occur compared to the previous wave. By connecting these points, it helps traders detect trends.
This indicator minimizes random price fluctuations, aiming to clarify the primary price trend.
Pivots are points on a price chart where the direction changes. Also known as reversal points, pivots form when supply and demand forces overpower one another.
There are various types of technical analysis pivots, which can be divided into two categories: minor pivots and major pivots, each with distinct significance in analysis.
Major Pivot : These pivots signify substantial changes in the chart's direction and occur at the end of trends. Analysts focusing on primary analysis prioritize major pivot points. In fact, most technical analysis tools are evaluated and based on major pivots.
Minor Pivot : These pivots highlight smaller, subsidiary points and directions, appearing at the end of corrections. Analysts who focus on minor pivots represent small trends. It's important to note that minor pivots are not suitable for use in primary technical tools.
Identifying Minor and Major Pivots :
Minor pivots are formed between two major pivots and do not break the opposing major pivot. (Internal Pivot)
Major pivots are those that either successfully break the opposing pivot or move beyond the previous pivot of the same type. (External Pivot)
🟣 How to Use
🔵 Identifying Break of Structure (BOS)
In a given trend, such as a downtrend, a Break of Structure occurs when the price drops below the previous low and forms a new low (LL). In an uptrend, a BOS (MSB) happens when the price rises and exceeds the last high.
To confirm a trend, at least one BOS is required. The break above or below the previous high or low must be validated by the closing of at least one candle beyond that level.
🔵 Identifying Change of Character (CHOCH)
Change of Character (CHOCH) is an essential concept in market structure analysis, indicating a trend change. In other words, a trend concludes with a CHOCH (MSS). For example, in a downtrend, the price declines with BOS.
While BOS highlights the trend's strength, a CHOCH occurs when the price rises and surpasses the last high, signaling a transition from a downtrend to an uptrend.
This does not imply immediately entering a buy trade; instead, it is prudent to wait for a BOS in the upward direction to confirm the uptrend.
Unlike BOS, confirming a CHOCH does not require a candle to close; simply breaking above or below the previous high or low with the candle's wick is sufficient. The following examples illustrate bearish and bullish CHOCH.
Terms :
Market Structure Shift = MSS
Market Structure Break = MSB
🔵 Zig Zag
Based on identifying pivots and drawing zigzag lines, you can have different uses of this indicator.
Including :
Identifying pivot types along with major and minor recognition.
Identifying internal and external breakouts.
Identifying support and resistance levels.
Identifying Elliott Waves.
Identifying classic patterns.
Identifying pivots with higher validity.
Identifying trends and range areas.
🟣 Settings
Pivot Period Market Structure and ZigZag Line: Using this input, you can determine the pivot period for identifying swings.
Through the settings, you can customize the display, visibility, and color of each line as desired.
Wolfe Wave Detector [LuxAlgo]The Wolfe Wave Detector displays occurrences of Wolfe Waves, alongside a target line. A multiple swing detection approach is used to maximize the number of detected waves.
The indicator includes a dashboard with the number of detected waves, as well as the number of reached targets.
🔶 USAGE
The Wolfe Wave pattern is a chart pattern composed of five segments, with the initial segment extremities (points XABCD) forming a channel containing price variations.
After the price reaches point D , we can expect a reversal toward a target line (point E ). The target line is obtained by connecting and extending point X -> C .
The script draws the XABCD pattern and a projection of where E might potentially be located.
The projection is derived from the intersection between the target line and a line starting from D , parallel to B-C . From this line, margins are added, left and right, creating a wedge-shaped figure in most cases.
When the price passes the target line, this is highlighted by a dot. The dot and pattern are green by default when the target is above D and red when the target is below D . Colors can be edited in the settings. The dashed target line is colored in the opposite color.
As seen in the above example, the price trend can reverse after reaching the target line.
🔹 Symmetry
Ideally, the Wolfe Wave must have a degree of symmetry; every upward line should have a similar angle to the other upward lines, and the same should be true for the downward lines.
Also, the lines forming the channel should be as parallel as possible.
Users have the option to adjust the tolerance:
Margin controls the wave symmetry of the pattern
Angle controls the channel symmetry of the pattern
It's important to note that in both cases, a lower number will lead to more symmetrical patterns, but they may appear less frequently.
It is also important to note that increasing the Margin can delay validating the pattern. In the meantime, the price could surpass the channel in the opposite direction, invalidating and deleting the otherwise valid pattern.
🔹 Multiple Swings
Users can set a Minimum Swing length (for example 2) and a Maximum Swing length (for example 100) which defines the range of the swing point detection length, higher values for these settings will detect longer-term Wolfe patterns, while a larger range will allow for the detection of a larger number of patterns.
By using multiple swings, it is possible to find smaller next to larger patterns at the same time.
The dashboard shows the number of patterns found and targets reached. When, for example, bullish patterns are disabled in the settings, the dashboard only shows the results of bearish patterns.
🔹 Extend Target Line
The publication includes a setting that allows the Target Line to be extended up to 50 bars further. As seen in the above example, the Target Line can still be reached even after the pattern has been finalized. Once the Target Line is reached, it won't be updated further.
Here is another example of a Target Line being reached later on.
The Target Line acted as a support level, after which where the price changed direction.
🔹 Show Progression
An option is included to show the progression before the pattern is completed. Users can make use of the XABC pattern or visualize where point D should be positioned.
The focus lies on the bar range (between the left and right borders of the grey rectangle). The pattern is considered invalid and deleted when point D is beyond these limits. The height of the rectangle is optional. Ideally, the price should be located between the top and bottom of the rectangle, but it is not mandatory.
Show Progression has three options including:
Full: Show all lines of XABC plus line C-D and rectangle for the position of point D
Partial: Show line C-D and rectangle for the position of point D
None: Only show valid completed patterns
The 'Partial' option in the 'Show Progression' feature is designed to help users locate the desired position of point D without the visual clutter caused by the XABC lines. This can be useful for those who prefer a cleaner visual representation of the evolving pattern.
🔶 SETTINGS
🔹 Swing Length
Minimum: Minimum length used for the swing detection.
Maximum Swing Length: Maximum length used for the swing detection.
🔹 Tolerance
Margin: Influences the symmetry of the pattern; with a higher number allowing for less symmetry.
Angle: Influences the symmetry of the channel; with a higher number allowing for less symmetry.
🔹 Style
Toggle: Bullish/Bearish + colors
Extend Target Line: Extend a maximum of 50 bars or until Target Line is reached
Show Progression: Show pattern progression
Dot Size: The size of the dot when the Target Line is reached
🔹 Dashboard
Show Dashboard: Toggle dashboard which shows the number of found patterns and targets reached.
Location: Location of the dashboard on the chart.
Text Size: Text size.
🔹 Calculation
Calculated Bars: Allows the usage of fewer bars for performance/speed improvement
Wyckoff Springs [QuantVue]The Wyckoff Springs indicator is designed to identify potential bullish reversal patterns known as "springs" in the Wyckoff Method. A Wyckoff spring occurs when the price temporarily dips below a support level, then quickly rebounds, suggesting a false breakdown and a
potential buying opportunity.
How it works:
Pivot detection:
The indicator identifies pivot lows based on the specified pivot length.
These pivot points are stored and analyzed for potential spring patterns.
Volume and Range Checks:
If volume confirmation is enabled, the indicator checks if the current volume exceeds a threshold based on the average volume over the specified period.
The indicator ensures that the price undercuts the defined trading range before confirming a spring pattern.
Spring Identification
The indicator checks for price conditions indicative of a Wyckoff spring: a temporary dip below a pivot low followed by a close above it. The recovery must take place within 3 bars.
If these conditions are met, a spring label is placed below the bar.
Features:
Pivot Length:
The user can set the pivot length to match any style of trading.
Volume Confirmation:
An optional feature where the user can specify if volume confirmation is required for a spring signal.
Volume threshold can be set to determine what constitutes significant volume compared to the average volume over a specified period. By default it is set to 1.5
How to Trade a Spring:
Give this indicator a BOOST and COMMENT your thoughts below!
We hope you enjoy.
Cheers!
MAHA Luxmi AI Candles [Overlay]The MAHA Luxmi AI Candles trading indicator is a sophisticated tool designed to assist traders in identifying potential trading opportunities by utilizing a combination of Moving Average (MA) and Heikin-Ashi (HA) techniques, further enhanced with a custom formula. Here’s a detailed breakdown of its functionalities:
1. Integration of MA and HA Techniques
MAHA stands for Moving Average and Heikin-Ashi. This indicator modifies these traditional techniques with a unique custom formula, aiming to provide more accurate and reliable signals for traders. The combination enhances the smoothing effect of Moving Averages with the trend indication of Heikin-Ashi candles.
2. Four-Colored Candles for Trend Indication
The indicator uses a color-coded system to denote different market conditions and potential trading opportunities:
- Green Candles: These candles indicate a potential long opportunity. The appearance of a green candle suggests that the market is showing bullish tendencies, prompting traders to consider entering a long position.
- Blue Candles: These candles signify an active pullback within a bullish trend. The blue candle warns traders of a possible temporary reversal within the overall bullish trend, suggesting caution and the need for confirmation before continuing with a long position or preparing for a potential reversal.
- Red Candles: These candles represent a potential short opportunity. A red candle indicates bearish market conditions, signaling traders to consider entering a short position.
- Yellow Candles: These candles denote an active pullback within a bearish trend. The presence of a yellow candle indicates a temporary reversal within the bearish trend, urging traders to be cautious with short positions and look for signs of continuation or reversal.
3. MAHA Bars for Distance and Area of Interest
In addition to the colored candles, the MAHA Luxmi AI Candles indicator also plots MAHA bars. These bars share the same color coding and usage as the candles, providing a consistent visual representation of market conditions:
- Green Bars: Indicate a potential long opportunity, aligning with green candles.
- Blue Bars: Show an active pullback in a bullish trend, aligning with blue candles.
- Red Bars: Represent a potential short opportunity, aligning with red candles.
- Yellow Bars: Indicate an active pullback in a bearish trend, aligning with yellow candles.
The MAHA bars help traders gauge the distance between the current price and the area of interest, enhancing their understanding of how close or far the price is from key levels identified by the MAHA formula. This aids in making better decisions regarding entry and exit points.
4. Trailing Stop Loss Feature
The base of the MAHA Bars can also be used as a trailing stop loss. This feature provides a dynamic stop loss level that adjusts with the market, helping traders lock in profits and limit losses by following the trend. When the price moves favorably, the trailing stop loss adjusts accordingly, ensuring that traders can capitalize on market movements while minimizing risk.
Usage and Benefits
- Trend Identification: The color-coded system simplifies the identification of market trends and potential reversals, making it easier for traders to understand market dynamics at a glance.
- Pullback and Reversal Alerts: The blue and yellow candles/bars alert traders to potential pullbacks and reversals, providing crucial information for managing trades and avoiding false signals.
- Distance Measurement: The MAHA bars help traders measure the distance between the current price and the areas of interest, enhancing their ability to assess the risk and potential reward of trades.
- Trailing Stop Loss: The base of the MAHA Bars can be used as a trailing stop loss, providing a dynamic risk management tool that adapts to market conditions.
Overall, the MAHA Luxmi AI Candles trading indicator is a powerful tool for traders looking to leverage the combined strengths of Moving Averages and Heikin-Ashi techniques. The intuitive color-coded system, additional MAHA bars, and the trailing stop loss feature make it an essential component of a trader’s toolkit for identifying trends, managing risk, and identifying trading opportunities.
Fair Value Gaps Setup 01 [TradingFinder] FVG Absorption + CHoCH🔵 Introduction
🟣 Market Structures
Market structures exhibit a fractal and nested nature, which leads us to classify them into internal (minor) and external (major) categories. Definitions of market structure vary, with different methodologies such as Smart Money and ICT offering distinct interpretations.
To identify market structure, the initial step involves examining key highs and lows. An uptrend is characterized by successive highs and lows that are higher than their predecessors. Conversely, a downtrend is marked by successive lows and highs that are lower than their previous counterparts.
🟣 Market Trends and Movements
Market trends consist of two primary types of movements :
Impulsive Movements : These movements align with the main trend and are characterized by high strength and momentum.
Corrective Movements : These movements counter the main trend and are marked by lower strength and momentum.
🟣 Break of Structure (BOS)
In a downtrend, a Break of Structure (BOS) occurs when the price falls below the previous low and establishes a new low (LL). In an uptrend, a BOS, also known as a Market Structure Break (MSB), happens when the price rises above the last high.
To confirm a trend, at least one BOS is necessary, which requires the price to close at least one candle beyond the previous high or low.
🟣 Change of Character (CHOCH)
Change of Character (CHOCH) is a crucial concept in market structure analysis, indicating a shift in trend. A trend concludes with a CHOCH, also referred to as a Market Structure Shift (MSS).
For example, in a downtrend, the price continues to drop with BOS, showcasing the trend's strength. However, when the price rises and exceeds the last high, a CHOCH occurs, signaling a potential transition from a downtrend to an uptrend.
It is essential to note that a CHOCH does not immediately indicate a buy trade. Instead, it is prudent to wait for a BOS in the upward direction to confirm the uptrend. Unlike BOS, a CHOCH confirmation does not require a candle to close; merely breaking the previous high or low with the candle's wick is sufficient.
🟣 Spike | Inefficiency | Imbalance
All these terms mean fast price movement in the shortest possible time.
🟣 Fair Value Gap (FVG)
To pinpoint the "Fair Value Gap" (FVG) on a chart, a detailed candle-by-candle analysis is necessary. This process involves focusing on candles with substantial bodies and evaluating them in relation to the candles immediately before and after them.
Here are the steps :
Identify the Central Candle : Look for a candle with a large body.
Examine Adjacent Candles : The candles before and after this central candle should have long shadows, and their bodies must not overlap with the body of the central candle.
Determine the FVG Range : The distance between the shadows of the first and third candles defines the FVG range.
This method helps in accurately identifying the Fair Value Gap, which is crucial for understanding market inefficiencies and potential price movements.
🟣 Setup
This setup is based on Market Structure and FVG. After a change of character and the formation of FVG in the last lag of the price movement, we are looking for trading positions in the price pullback.
Bullish Setup :
Bearish Setup :
🔵 How to Use
After forming the setup, you can enter the trade using a pending order or after receiving confirmation. To increase the probability of success, you can adjust the pivot period market structure settings or modify the market movement coefficient in the formation leg of the FVG.
Bullish Setup :
Bearish Setup :
🔵 Setting
Pivot Period of Market Structure Detector :
This parameter allows you to configure the zigzag period based on pivots. Adjusting this helps in accurately detecting order blocks.
Show major Bullish ChoCh Lines :
You can toggle the visibility of the Demand Main Zone and "ChoCh" Origin, and customize their color as needed.
Show major Bearish ChoCh Lines :
Similar to the Demand Main Zone, you can control the visibility and color of the Supply Main Zone and "ChoCh" Origin.
FVG Detector Multiplier Factor :
This feature lets you adjust the size of the moves forming the Fair Value Gaps (FVGs) using the Average True Range (ATR). The default value is 1, suitable for identifying most setups. Adjust this value based on the specific symbol and market for optimal results.
FVG Validity Period :
This parameter defines the validity period of an FVG in terms of the number of candles. By default, an FVG remains valid for up to 15 candles, but you can adjust this period as needed.
Mitigation Level FVG :
This setting establishes the basic level of an FVG. When the price reaches this level, the FVG is considered mitigated.
Level in Low-Risk Zone :
This feature aims to reduce risk by dividing the FVG into two equal areas: "Premium" (upper area) and "Discount" (lower area). For lower risk, ensure that "Demand FVG" is in the "Discount" area and "Supply FVG" in the "Premium" area. This feature is off by default.
Show or Hide :
Given the potential abundance of setups, displaying all on the chart can be overwhelming. By default, only the last setup is shown, but you can enable the option to view all setups.
Alert Settings :
On / Off : Toggle alerts on or off.
Message Frequency : Determine how often alerts are triggered.
Options include :
"All" (alerts every time the function is called)
"Once Per Bar" (alerts only on the first call within the bar)
"Once Per Bar Close" (alerts only at the last script execution of the real-time bar upon closing)
The default setting is "Once Per Bar".
Show Alert Time by Time Zone : Set the alert time based on your preferred time zone, such as "UTC-4" for New York time. The default is "UTC".
Display More Info : Optionally show additional details like the price range of the order blocks and the date, hour, and minute in the alert message. Set this to "Off" if you prefer not to receive this information.
ZigZag ProHello Traders!
TRN ZigZag Pro is an indicator which identifies, and highlights pivot points (swings) and prints useful information about the swings in the chart (e.g. length, duration, ...). The indicator uses an extremely precise swing algorithm to detect the most important pivot points. Compared to other swing or zig-zag indicators TRN ZigZag Pro works in real-time, does not need a look-a-head to find swings and is not repainting. Moreover, equal (double) highs and lows are detected and displayed. The TRN ZigZag Pro helps traders to visualize pure price action and supports the trader to identify key turning points or trends.
The indicator comes with the following features:
Precise real-time swing detection without repainting
Equal/double high and low detection
Displaying of swing labels, values and information
Customizable settings as well as look and feel
It's important to note that the TRN ZigZag Pro is a visual tool and does not provide specific buy or sell signals. It serves as a guide for traders to analyze market structure in depth and make well-informed trading decisions based on their trading strategy and additional technical analysis.
Getting an edge with the TRN ZigZag Pro
The indicator clearly displays up trends, defined as a sequence of higher highs (HH) and higher lows (HL), with green labels and down trends, defined as a sequence of lower lows (LL) and lower highs (LH), with red labels. Equal highs/double tops (DT) and equal lows/ double bottoms (DB) are highlighted in gold.
In addition, the labels show a full stack of valuable information about the swings to maximize your accuracy.
Length
Length percentage in relation to the last swing length
Duration
Label (e.g. HH, LL...)
Use cases for swing detection
Trend Identification
By connecting the swing highs and lows, traders can identify and analyze the prevailing trend in the market. An uptrend is characterized by higher swing highs and lows, while a downtrend is characterized by lower highs and lower lows. The indicator helps traders visually to assess the strength and continuity of the trend.
Support And Resistance Levels
The swing highs and lows can act as support and resistance levels. Swing highs may act as resistance levels where selling pressure increases, while swing lows may act as support levels where buying pressure increases. Traders often pay attention to these levels as potential areas for trade entries, exits, or placing stop-loss orders.
Pattern Recognition
The swings identified by the indicator can help traders recognize chart patterns, such as equal high/lows, consolidations, wedges, triangles or more complex patterns like Gartley or Head and Shoulders. These patterns can provide insights into potential trend continuation or reversal.
Trade Entry and Exit
Traders may use TRN ZigZag Pro to determine potential trade entry and exit points. For example, in an uptrend, traders may look for opportunities to enter long positions near swing lows or on pullbacks to support levels. Conversely, in a downtrend, traders may consider short positions near swing highs or on retracements to resistance levels.
Conclusion
While signals from TRN ZigZag Pro can be informative, it is important to recognize that their reliability may vary. Various external factors can impact market prices, and it is essential to consider your risk tolerance and investment goals when executing trades.
Risk Disclaimer
The content, tools, scripts, articles, and educational resources offered by TRN Trading are intended solely for informational and educational purposes. Remember, past performance does not ensure future outcomes.
ICT KillZones Hunt [TradingFinder] 4 Sessions + OB + FVG + Alert🔵 Introduction
🟣 ICT
The "ICT" style is a subset of "Price Action" technical analysis. The primary goal of the ICT trading strategy is to merge "Price Action" with the "Smart Money" concept to pinpoint optimal trade entry points.
However, this approach's strength extends beyond merely finding entry points. It also helps traders gain a deeper understanding of price behavior and adapt their trading strategies to the market structure.
The most important concepts of "ICT" :
Order Block
Fair Value Gap(FVG)
Liquidity
🟣 Session
Financial markets are divided into several time periods, each featuring distinct characteristics and levels of activity. These periods, known as sessions, are active at different times during the day.
The primary active sessions in financial markets include :
Asian Session
European Session
New York Session
Based on the UTC time zone, the schedule for these key sessions is :
Asian Session: 23:00 to 06:00
European Session: 07:00 to 16:30
New York Session: 13:00 to 22:00
Note
To avoid session overlap and minimize interference during kill zones, the session times have been modified as follows :
Asian Session: 23:00 to 06:00
European Session: 07:00 to 14:25
New York Session: 14:30 to 22:55
🟣 KillZone
Kill zones are periods within a session where trader activity spikes. During these times, trading volume surges, and price movements become more pronounced.
The major kill zones, according to the UTC time zone, are as follows :
Asian Kill Zone: 23:00 to 03:55
European Kill Zone: 07:00 to 09:55
New York Morning Kill Zone: 14:30 to 16:55
New York Evening Kill Zone: 19:30 to 20:55
🔵 How to Use
🟣 Order Block
Order blocks are a distinct category of "Supply and Demand" zones, formed when a series of orders are grouped together. These blocks are often created by banks or other significant market participants.
Banks typically execute large orders in blocks during their trading sessions. If they were to enter the market with small quantities, substantial price movements would occur before the orders were fully executed, reducing potential profit.
To mitigate this, they divide their orders into smaller, more manageable positions. Traders should seek "buy" opportunities in "demand order blocks" and "sell" opportunities in "supply order blocks."
🟣 Fair Value Gap (FVG)
To pinpoint the "Fair Value Gap" on the chart, meticulous candle-by-candle analysis is essential. Pay close attention to candles with significant bodies, examining each candle alongside the one preceding it.
The candles flanking this central candle should exhibit elongated shadows, with bodies that do not intersect the body of the central candle. The span between the shadows of the first and third candles is referred to as the FVG range.
Note :
The origin of all Order Blocks and FVGs starts from inside a kill zone and extends up to the end of the same session.
🟣 Kill Zone Hunt
Following this strategy, after the conclusion of the kill zone and the stabilization of its high and low lines, if the price touches either of these lines within the same session and encounters a robust rejection, it presents an opportunity to enter a trade.
🔵 Setting
🟣 Global Setting
Show All Order Block :
If it is turned off, only the last Order Block will be displayed.
Show All FVG :
If it is turned off, only the last FVG will be displayed.
Show More Info Session :
If it is turned on, more information about kill zones (Trade Volume, Time, Number of Candles) will be displayed.
🟣 Logic Parameter
Pivot Period of Order Blocks Detector :
Enter the desired pivot period to identify the Order Block.
Order Block Validity Period (Bar) :
You can specify the maximum time the Order Block remains valid based on the number of candles from the origin.
Mitigation Level Order Block :
Determining the basic level of a block order. When the price hits the basic level, the order block due to mitigation.
🟣 Order Blocks Display
Demand Order Block :
Show or not show and specify color.
Supply order Block :
Show or not show and specify color.
🟣 Order Block Refinement
Refine Demand OB :
Enable or disable the refinement feature. Mode selection.
Refine Supply OB :
Enable or disable the refinement feature. Mode selection.
🟣 FVG
FVG Validity Period (Bar) :
You can specify the maximum time the FVG remains valid based on the number of candles from the origin.
Mitigation Level FVG :
Determining the basic level of a FVG. When the price hits the basic level, the FVG due to mitigation.
Show Demand FVG :
Show or not show and specify color.
Show Supply FVG :
Show or not show and specify color.
FVG Filter :
Enable or disable filtering of FVGs. Select filter mode.
🟣 Session
Show More Info Session Color
Asia Session, London Sesseion, New York am Session & New York pm Session :
Show or not show session and kill zones. Change the display color.
🟣 Alert
Send Alert When Touched Session high & Low :
On / Off
Alert Demand OB Mitigation :
On / Off
Alert Supply OB Mitigation :
On / Off
Alert Demand FVG Mitigation :
On / Off
Alert Supply FVG Mitigation :
On / Off
Message Frequency :
This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone :
The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
Display More Info :
Displays information about the price range of the order blocks (Zone Price) and the date, hour, and minute under "Display More Info". If you do not want this information to appear in the received message along with the alert, you should set it to "Off".
Advanced Awesome Oscillator [CryptoSea]Advanced AO Analysis Indicator
The Advanced AO Analysis indicator is a sophisticated tool designed to evaluate the Awesome Oscillator (AO) in search of regular and hidden divergences that signal potential price reversals. By tracking the intensity and duration of the AO's movements, this indicator aids traders in pinpointing critical points in price action.
Key Features
Divergence Detection: Identifies both regular and hidden bullish and bearish divergences, providing early signs of potential market reversals.
Customizable Lookback Periods: Allows users to set specific lookback windows to define the strength and relevance of detected divergences.
Adaptive Oscillator Display: Features customizable display options for the AO, enabling users to view data in different modes suited to their analysis needs.
Alert System: Includes configurable alerts to notify users of potential divergence formations, helping traders respond promptly.
How it Works
AO Calculation: Computes the AO as the difference between short-term and long-term moving averages of the midpoints of bars, highlighting momentum shifts.
Pivot Point Analysis: Utilizes advanced algorithms to find low and high pivot points based on the oscillator values, crucial for spotting trend reversals.
Range Validation: Verifies that divergences occur within a predefined range from pivot points, ensuring their validity and strength.
Visualisation: Plots AO values and potential divergences directly on the chart, aiding in quick visual analysis.
Application
Strategic Decision-Making: Assists traders in making informed decisions by providing detailed analysis of AO movements and divergence.
Trend Confirmation: Reinforces trading strategies by confirming potential reversals with pivot point detection and divergence analysis.
Behavioural Insight: Offers insights into market dynamics and sentiment by analyzing the depth and duration of AO cycles above and below zero.
The Advanced AO Analysis indicator equips traders with a powerful analytical tool for studying the Awesome Oscillator in-depth, enhancing their ability to spot and act on divergence-based trading opportunities in the cryptocurrency markets.
Price Reversal Probability + Price Forecast [TradeDots]The TradeDots Price Reversal Probability + Price Forecast Indicator helps traders discern market direction and identify potential trading opportunities.
📝 HOW IT WORKS
The indicator provides two types of reversal signals:
Bullish Reversal: Marked with a green label, indicating an expected upward market reversal.
Bearish Reversal: Marked with a red label, indicating an expected downward market reversal.
⭐️ Computation
This tool identifies significant reversal patterns using a mathematical model on a designated window of candlesticks to calculate price action changes. It incorporates candlestick data and price indicators, such as the Open, Close, High, Low of candlesticks and Average True Range (ATR), to detect similar occurrences in real-time.
Potential market turning points are marked with reversal labels and percentage changes , calculated using pivot high or low price data from the last reversal patterns of the opposite side.
For example, a green label on the chart indicates a bullish reversal pattern, showing the market is expected to reverse upward. However, signals are based on historical price actions and are not 100% accurate. If the price breaks down from the bullish reversal pivot low, the original signal will turn half transparent until the next reversal pattern is detected.
The algorithm groups consecutive bullish reversal patterns until a bearish reversal pattern appears. The last bullish label occurrence indicates the maximum number of bullish patterns required to confirm a reversal in the group. This information is stored to apply Bayesian statistical models and probability models to generate market insights.
⭐️ Statistical Analysis
Reversal signals are categorized into bullish and bearish groups, with each group storing consecutive reversal signals.
In the indicator table, each new reversal is labeled sequentially (e.g., "🟢 #1" for the first bullish reversal after a bearish signal). The number increases for each new signal on the same side and resets when a reversal signal on the opposite side appears.
The indicator provides two forecasts: the probability of reversal and the expected price change if the pattern is successful or unsuccessful.
⭐️ Probability of Reversal
By counting the number of consecutive reversal patterns on one side before a reversal pattern on the opposite side appears, we can calculate the probability of reversal of each signal throughout the entire price action history.
Using Bayes’ Theorem, the probability increases with each consecutive pattern. The values are displayed in the first two columns of the indicator table, with the current condition highlighted in orange.
⭐️ Price Forecast
The price forecast uses the pivot point of the last reversal pattern of the opposite side as a reference for calculating the percentage change.
For example, for a group of bullish patterns, the pivot high of the most recent bearish pattern is taken. A percentage is calculated with the pivot low of all bullish patterns in the same group. Repeating this model throughout the entire historical price action patterns gives the average price percentage difference between all bearish and bullish patterns.
Whenever a new reversal pattern is detected, a price can be forecasted using the percentage difference from the statistical model. The target price is calculated and displayed in the third and fourth columns of the indicator table.
Assisting Traders To Make Data-Informed Trading Decisions
All included features in this indicator:
Labeling of bullish and bearish reversal patterns
Success probability of each reversal pattern
Price targets of each reversal pattern
Visual aid for pattern confirmation
More (check the changelog below for current features)
🛠️ HOW TO USE
⭐️ Reversal Signals
There are two types of reversal signals identified by the algorithm that detects reversal patterns using price action analysis with candlestick data and price indicators. When the price breaks out from the labeled pivot, the label will turn half transparent.
Bullish reversal signals: Labeled in green. The number represents the price of the candlestick "low," and the percentage value indicates the price difference from the previous bearish reversal pattern's candlestick "high."
Bearish reversal signals: Labeled in red. The number represents the price of the candlestick "high," and the percentage value indicates the price difference from the previous bullish reversal pattern's candlestick "low."
⭐️ Probability Table
The probability table shows the likelihood of reversal for each number of occurrences of bullish and bearish reversal signals, displayed in the first two columns.
It also shows the target prices for both bullish and bearish conditions for each number of reversal patterns.
⭐️ Price Targets
By combining the probability of reversal and the price forecast, price targets for new reversal patterns are calculated. These insights help traders align their strategies with price action analysis and statistics by simply observing the candlestick chart in real-time.
Bullish Price Target: The average percentage price and probability that the next bearish reversal signal might hit.
Bearish Price Target: The average percentage price and probability that the next bullish reversal signal might hit.
⭐️ Market Trend Panel
The market trend panel is a small table that indicates the market trend using a 200 Exponential Moving Average (EMA) alongside reversal signals. A bullish reversal pattern above the moving average indicates a "bullish" market, while a bearish reversal pattern below it indicates a "bearish" market. If the price fluctuates around the moving average, it is identified as "choppy."
The panel also shows the risk and reward for each trade by taking the closing bullish and bearish targets from the most recent reversal pattern's price reference. Lastly, it displays the probability of reversal, consistent with the number highlighted in the probability table.
⭐️ Other Visual Aid
Other visual aids visualize the market trend and potential direction for users on the candlestick chart.
Background colors reflect the current market trend (green = bullish, red = bearish, blue = choppy).
A white plotted line represents the moving average for categorizing market trends.
❗️LIMITATIONS
Price targets represent only the mean of percentage differences. Therefore, the price could reverse before hitting either side of the price target.
When the market is in extreme price action or a new market pattern, the price targets may not be forecasted accurately and might move out of the model's range.
This model works best for assets with less price variation and a near-Gaussian distribution in returns. It may be less accurate for assets with random price movements.
CONCLUSION
This indicator uses fundamental statistics and mathematical models to generate reversal probabilities and price forecasts. It does not have the ability to predict the future with certainty. Traders should combine this indicator with other confirmation strategies to make informed investment decisions.
See Author's instructions below to get instant access to this indicator.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
NOTES*
Calculations are based on historical data and do not guarantee future results.
Reversals exceeding ten consecutive occurrences are rare (likely <1% of total occurrences).
Users SHOULD NOT blindly follow the price targets as their trading strategy.
If you encounter a timeout with this indicator, reapply it to your chart.
IsAlgo - Reverse Band Strategy► Overview:
The Reverse Band Strategy leverages a custom band indicator combined with a candlestick pattern for trade entries. The strategy initiates trades when a candle closes outside the bands, anticipating that the price will revert inside the bands and reach the opposite side.
► Description:
The Reverse Band Strategy is built around a sophisticated custom band indicator designed to identify potential reversal points in the market. The bands are calculated using a proprietary formula that factors in the trend's slope, the highest and lowest points within the trend, the average price movement, and the number of candles that form the trend. This advanced calculation allows for a dynamic and responsive band that adjusts to market conditions.
Once the band edges are identified, the strategy continuously monitors for candles that close outside these bands. When such a candle is detected, it signals a potential reversal, triggering an entry. The expectation is that the price will revert back inside the bands and move towards the opposite band edge.
How it Works:
Band Calculation: The strategy continuously updates the band edges using the aforementioned factors.aforementioned factors.
Signal Detection: It waits for a candle to close outside the bands.
Trade Entry: When an outside-close candle is detected, the strategy enters a trade expecting the price to revert to the opposite band edge.
Customization: Users can define the characteristics of the entry candle, such as its size relative to previous candles, to ensure it meets specific conditions before triggering a trade.
↑ Long Trade Example:
The entry candle closes below the lower band, indicating a potential upward reversal. The strategy enters a long position expecting the price to move towards the upper band.
↓ Short Trade Example:
The entry candle closes above the upper band, signaling a potential downward reversal. The strategy enters a short position anticipating the price to revert towards the lower band.
► Features and Settings:
⚙︎ Band Customization: Adjust band length, smoothness, and minimum distance to fit different market conditions and trading styles.
⚙︎ Entry Candle: Customize criteria such as candle size, body, and relative position to previous candles to ensure precise entry signals.
⚙︎ Trading Session: This feature allows users to define specific trading hours during which the strategy should operate, ensuring trades are executed only during preferred market periods.
⚙︎ Trading Days: Users can specify which days the strategy should be active, offering the flexibility to avoid trading on specific days of the week.
⚙︎ Backtesting: Enables a backtesting period during which the strategy can be tested over a selected start and end date. This feature can be deactivated if not needed.
⚙︎ Trades: Configure trade direction (long, short, or both), position sizing (fixed or percentage-based), maximum number of open trades, and trade limitations per day or based on band.
⚙︎ Trades Exit: Set profit/loss limits, specify trade duration, or exit based on band reversal signals.
⚙︎ Stop Loss: Various stop-loss methods are available, including a fixed number of pips, ATR-based, or using the highest or lowest price points within a specified number of previous candles. Additionally, trades can be closed after a specific number of candles move in the opposite direction of the trade.
⚙︎ Break Even: This feature adjusts the stop loss to a break-even point once certain conditions are met, such as reaching predefined profit levels, to protect gains.
⚙︎ Trailing Stop: The trailing stop feature adjusts the stop loss as the trade moves into profit, securing gains while potentially capturing further upside.
⚙︎ Take Profit: Up to three take-profit levels can be set using various methods, such as a fixed amount of pips, ATR, or risk-to-reward ratios based on the stop loss. Alternatively, users can specify a set number of candles moving in the direction of the trade.
⚙︎ Alerts: The strategy includes a comprehensive alert system that informs the user of all significant actions, such as trade openings and closings. It supports placeholders for dynamic values like take-profit levels and stop-loss prices.
⚙︎ Dashboard: A visual display provides detailed information about ongoing and past trades on the chart, helping users monitor the strategy's performance and make informed decisions.
► Backtesting Details:
Timeframe: 30-minute GBPUSD chart
Initial Balance: $10,000
Order Size: 5000 units
Commission: 0.02%
Slippage: 5 ticks
Wave LineWave Line is a chart type obtained by plotting the High and Low values in each time interval according to their sequential order. This method produces a continuous line rather than bars, which is beneficial for analyzing changes within each interval rather than focusing on the price range and open/close values. E.g for Wave Analysis.
How to use:
1. Adjust the interval unit and multiplier for the main timeframe.
2. Ideally, select a lower timeframe on your chart, approximately 5 times smaller than the one specified for the script.
3. Lower Timeframe is the timeframe which will be the scripts reference when the high and low of the main timeframe align on a single bar of the opened chart. This timeframe may also be 5-10 times smaller than the main timeframe. It is important to note that this should not be excessively smaller as the script may fail in retrieving data. An alternative method is included to estimate the order if it is not clear in the fetched data.
4. Set a preferred value for Monowave Length, indicating the number of bars a monowave will cover horizontally. Set the value to be half of the Interval Multiplier for the Wave Line to align with the bar chart. However if the multiplier is an odd number, perfect alignment may not be achieved.
5. Ensure that the product of Max Polyline Segments and Monowave length does not exceed 5000, and adjust the value for Max Polyline Segments accordingly.
[GYTS-CE] Signal Provider | WaveTrend 4D with GDMWaveTrend 4D with Gradient Divergence Measure (Community Edition)
🌸 " 📡 Signal Provider" in GoemonYae Trading System (GYTS) 🌸
WaveTrend 4D (WT4D) is an extension of the incredible WaveTrend 3D (2022, Justin Dehorty) . This oscillator elevates the classic WaveTrend by integrating advanced mathematical models for a multi-dimensional view of market momentum, capturing subtle shifts and trends that traditional indicators might miss. Each oscillator layer uses a combination of normalised derivatives, hyperbolic tangent transformations, and dual-pole filtering (John Ehlers' SuperSmoother), providing normalised and smooth signals with minimised lag.
The name "WaveTrend 4D" is derived from the usage of 4 dimensions, representing different frequencies or timeframes. Next to the "fast", "normal" and "slow" frequency, the fourth frequency is called "lethargic" (very slow). This gives the opportunity utilise more dimensions without having abundant signals, since we quantify and filter the quality of signals.
WT4D strives to help discriminating high-quality signals from the indicator by introducing the Gradient Divergence Measure (GDM) and Quantile Median Crosses (QMC). For simplicity, speed and focus, this particular indicator includes only the GDM part. Check the other 🤲Community Edition of this indicator that focuses on the QMC. For GDM, see below for more information.
🌸 --- GRADIENT DIVERGENCE MEASURE (GDM) --- 🌸
💮 Introduction
--
The GDM dynamically calculates a composite measure based on multiple factors. Unlike traditional binary divergence indicators, GDM employs a continuous value system to capture the nuanced dynamics of market behaviour. This methodology allows traders and analysts to assess the potency of divergence signals with greater precision, facilitating more informed decision-making processes.
💮 Methodology
--
The GDM is calculated using a composite formula that integrates various market dynamics. At its core, it consists of six components listed below, each weighted to optimize the indicator's responsiveness to market conditions:
The magnitude of relative change between waves -- A larger difference between the waves, i.e. lower high or higher low could signify a stronger divergence.
The absolute value of the latest wave -- The strength of the latest wave provides insight into the extremity of the market conditions.
Slope of the divergence -- The slope between the two points of divergence essentially measures the rate of change in the frequency\'s value over time. It captures both the direction and the steepness of the indicator’s move between two waves.
The magnitude of relative change of the price -- A divergence means that the oscillator shows an opposite pattern than price action. Thus, if the price makes a significantly higher high or lower low, but the indicator does not, this discrepancy can be used to measure the divergence strength. This components measures the price's extrema during the crosses of the indicator's waves.
Higher timeframe's frequency trend -- Similarly, instead of looking at the price directly, this component measures the more general trend of the price by using the higher timeframe frequency (i.e. the slow frequency when looking at divergences of the normal frequency).
Time duration -- Lastly, the time duration between the two points of a divergence can also be an important factor. A divergence that spans over a longer period might indicate a more significant market sentiment shift.
💮 Tuning the GDM
--
The 6 components discussed above are not independent, e.g. the slope is actually the result of the magnitude between waves, the absolute value and time duration. However, the default GDM is carefully tuned to include all these features without being too sensitive to outliers.
This makes this indicator very user-friendly. The only core parameter is the the "sensitivity". This controls the extent of normalisation between signals, and essentially affects how often strong GDMs appear. At the conservative end (higher sensitivity), the strong GDMs are less frequent but are relatively significant, while with a lower sensitivity the strong GDMs appear more frequent.
💮 GDM on the Oscillator
--
The GDMs are represented by triangles and their value represents the strength. A value close to `1` signifies a strong bearish divergence and thus a possible reversal of continuation of a downtrend. Similarly, a value close to `-1` signifies a strong bullish divergence.
Note that there are two colour sets which can be enabled and disabled. One uses crosses between the fast and normal frequencies (with the slow frequency acting as the price trend with which there should be an opposite interaction -- hence a "divergence"). Similarly, crosses between the normal and slow frequencies (with the lethargic (the most slow) frequency acting as the price trend) are used to find divergences on a higher timeframe.
Another handy feature is a threshold to more strikingly visualise "strong" GDMs.
🌸 --- GOEMONYAE TRADING SYSTEM --- 🌸
As previously mentioned, this indicator is a 📡 Signal Provider, part of the suite of the GoemonYae Trading System (🤲 Community Edition). The greatest value comes from connecting multiple 📡 Signal Providers to the 🧬 Flux Composer to find confluence between signals. Contrary to most other indicators that connect with each other, the signals that are passed are not just binary signals ("buy" or "sell") but pass the actual GDM and QMC values. This gives the opportunity in the 🧬 Flux Composer to more accurately use multiple signals with different strengths to finally give an overall signal. On its turn, the Flux Composer can be connected to the GYTS "🎼 Order Orchestrator" for backtesting and trade automation.
[GYTS-CE] Signal Provider | WaveTrend 4D with QMCWaveTrend 4D with Quantile Median Crosses (Community Edition)
🌸 " 📡 Signal Provider" in GoemonYae Trading System (GYTS) 🌸
WaveTrend 4D (WT4D) is an extension of the incredible WaveTrend 3D (2022, Justin Dehorty) . This oscillator elevates the classic WaveTrend by integrating advanced mathematical models for a multi-dimensional view of market momentum, capturing subtle shifts and trends that traditional indicators might miss. Each oscillator layer uses a combination of normalised derivatives, hyperbolic tangent transformations, and dual-pole filtering (John Ehlers' SuperSmoother), providing normalised and smooth signals with minimised lag.
The name "WaveTrend 4D" is derived from the usage of 4 dimensions, representing different frequencies or timeframes. Next to the "fast", "normal" and "slow" frequency, the fourth frequency is called "lethargic" (very slow). This gives the opportunity utilise more dimensions without having abundant signals, since we quantify and filter the quality of signals.
WT4D strives to help discriminating high-quality signals from the indicator by introducing the Gradient Divergence Measure (GDM) and Quantile Median Crosses (QMC). For simplicity, speed and focus, this particular indicator includes only the QMC part. Check the other 🤲Community Edition of this indicator that focuses on the GDM. For QMC, see below for more information.
🌸 --- QUANTILE MEDIAN CROSSES (QMC) --- 🌸
💮 Introduction
--
A powerful approach when working with WaveTrend is to use the frequencies' crossings of the median (zero) line. This would signify a continuation of the reversal. However, not all of those crossings would be trades with a high probability of success. For this reason, we strive to only consider reversals after the most strong trends start to show weakness. We call these reversals the "Quantile Median Crosses" (QMC), deriving the name from the used methodology.
💮 Methodology
--
To find these "most strong trends", we calculate the integral ("the area") of a frequency between all historical median crosses, and take an upper quantile of those integrals. This means that when the frequency is crossing the median in a period of consolidation, the areas between those crosses would be small. But if there was a strong momentum, and the frequency would separate itself significantly from the median and would do so for a long time, its area would be large.
So after considering all the past integrals, we take the upper quantile of those (i.e. sort all integrals and for example take the top 5%) and if the latest trend's integral was in this upper quantile, it is considered "significant". Hence, the name "quantile" in the name "Quantile Median Cross".
💮 QMC on the Oscillator
--
The QMC is shown as a label "🔴" above the median or with "🟢" below the median. The normal frequency has a "bronze" colour, the slow frequency "silver" and the lethargic is "gold". In addition to the labels, there are also diamond shapes in the same colour drawn on the median in the oscillator. This represents the previous median crossing, and helps the user to see between which two points the integral is calculated.
🌸 --- GOEMONYAE TRADING SYSTEM --- 🌸
As previously mentioned, this indicator is a 📡 Signal Provider, part of the suite of the GoemonYae Trading System (🤲 Community Edition). The greatest value comes from connecting multiple 📡 Signal Providers to the 🧬 Flux Composer to find confluence between signals. Contrary to most other indicators that connect with each other, the signals that are passed are not just binary signals ("buy" or "sell") but pass the actual GDM and QMC values. This gives the opportunity in the 🧬 Flux Composer to more accurately use multiple signals with different strengths to finally give an overall signal. On its turn, the Flux Composer can be connected to the GYTS "🎼 Order Orchestrator" for backtesting and trade automation.
Market Structures SMC [TradingFinder] BOS/CHoCH Major & Minor🟣Introduction
Understanding market structure involves analyzing market behavior. In other words, market structure encompasses how the market forms and evolves within trends.
Market structures are typically fractal and nested, so we categorize them into internal (minor) and external (major) structures. There are various definitions of market structure, with different approaches such as Smart Money and ICT providing their own interpretations.
🟣How to Use
The first step in identifying market structure is to analyze key highs and lows. An uptrend is formed when highs and lows are successively higher than previous ones. Similarly, in a downtrend, lows and highs are successively lower than previous ones.
Market trends consist of two types of movements :
•Impulsive movements
•Corrective movements
Impulsive movements align with the main trend and possess high strength and momentum. Conversely, corrective movements go against the main trend and have lower strength and momentum. The following example illustrates these concepts.
🔵 Identifying Break of Structure (BOS)
In a specific trend, for example in a downtrend, when the price breaks below the previous low and forms a new low (LL), a Break of Structure occurs. In an uptrend, a BOS (Market Structure Break or MSB) happens when the price rises and surpasses the last high.
We need at least one BOS to confirm a trend. Breaking above or below the previous high or low must be confirmed by closing at least one candle after that level.
🔵 Identifying Change of Character (CHOCH)
Change of Character (CHOCH) is a key concept in market structure analysis. A change in structure signals a trend change. In other words, a trend ends with a CHOCH (Market Structure Shift or MSS). For instance, in a downtrend, the price declines with BOS.
BOS indicates the strength of the trend, but when the price increases and surpasses the last high, a CHOCH occurs, signaling a shift from a downtrend to an uptrend.
This does not mean entering a buy trade; instead, we should wait for a BOS in the upward direction to confirm the uptrend. Unlike BOS, confirming a CHOCH does not require a candle to close; simply breaking above or below the previous high or low with the candle's wick is sufficient. The following examples show bearish and bullish CHOCH.
🔵 Range Market Structure
Besides uptrends and downtrends, a third structure often found in the market is the range or sideways structure. In this state, the power of buyers and sellers is almost equal, and the market lacks a clear trend.
Many traders believe that the Forex market ranges 80% of the time. Therefore, it requires a lot of patience to wait for a new trend to start.
🟣 Settings
Through the settings, you can customize the display, visibility, and color of each line as desired.
