OPEN-SOURCE SCRIPT
Karacatica
Karacatica Indicator - Dynamic Trend Following.
The Karacatica Indicator is designed for traders looking for a comprehensive approach to trend trading by combining directional movements and Average True Range (ATR).
Key Features: ATR-Based Trend Detection: The indicator uses Average True Range (ATR) to measure market volatility and integrates with price action to capture strong trend movements.
Directional Indicators (DI's): Calculates DI's (Positive Directional Index Di+ and Negative Directional Index Di-) to compare buying and selling pressure. This allows for more accurate trend identification, highlighting when buyers or sellers dominate.
Signal Generation: Buy Signal: Generated when price action is bullish (close is above the previous period's close) and DI+ exceeds DI-, indicating that buyers are in control.
Sell Signal: Triggered when price action is bearish (close is below the previous period’s close) and DI- exceeds DI+, showing that sellers dominate the market.
Visual Signals: Green triangle (▲) indicating a buy opportunity, plotted below the bar.
Fuchsia triangle (▼) signaling a sell opportunity, plotted above the bar.
Customizable Inputs: The indicator allows users to adjust the ATR period, DI length, and ADX smoothing parameters, giving it the flexibility to suit different trading styles and timeframes.
Why should you use it?
This indicator simplifies the process of analyzing the combination market direction and trend strength. It is especially useful for traders who like strong directional movements and want clear, visually represented entry signals. The Karacatica Indicator can generate good buy or sell signals in trading and can be used on multiple assets and timeframes, making it adaptable to different market conditions.
Settings Overview: ATR Period: Sets the period for calculating ATR, used to determine market volatility.
DI Length: The length of the lookback period for DI+ and DI- calculations.
ADX Smoothing: Smooths the ADX (Average Directional Index) to reduce noise.
Feel free to experiment with this indicator, share feedback, and adapt it to your trading strategy. Good trading!
The Karacatica Indicator is designed for traders looking for a comprehensive approach to trend trading by combining directional movements and Average True Range (ATR).
Key Features: ATR-Based Trend Detection: The indicator uses Average True Range (ATR) to measure market volatility and integrates with price action to capture strong trend movements.
Directional Indicators (DI's): Calculates DI's (Positive Directional Index Di+ and Negative Directional Index Di-) to compare buying and selling pressure. This allows for more accurate trend identification, highlighting when buyers or sellers dominate.
Signal Generation: Buy Signal: Generated when price action is bullish (close is above the previous period's close) and DI+ exceeds DI-, indicating that buyers are in control.
Sell Signal: Triggered when price action is bearish (close is below the previous period’s close) and DI- exceeds DI+, showing that sellers dominate the market.
Visual Signals: Green triangle (▲) indicating a buy opportunity, plotted below the bar.
Fuchsia triangle (▼) signaling a sell opportunity, plotted above the bar.
Customizable Inputs: The indicator allows users to adjust the ATR period, DI length, and ADX smoothing parameters, giving it the flexibility to suit different trading styles and timeframes.
Why should you use it?
This indicator simplifies the process of analyzing the combination market direction and trend strength. It is especially useful for traders who like strong directional movements and want clear, visually represented entry signals. The Karacatica Indicator can generate good buy or sell signals in trading and can be used on multiple assets and timeframes, making it adaptable to different market conditions.
Settings Overview: ATR Period: Sets the period for calculating ATR, used to determine market volatility.
DI Length: The length of the lookback period for DI+ and DI- calculations.
ADX Smoothing: Smooths the ADX (Average Directional Index) to reduce noise.
Feel free to experiment with this indicator, share feedback, and adapt it to your trading strategy. Good trading!
Script de código abierto
Siguiendo fielmente el espíritu de TradingView, el autor de este script lo ha publicado en código abierto, permitiendo que otros traders puedan entenderlo y verificarlo. ¡Olé por el autor! Puede utilizarlo de forma gratuita, pero tenga en cuenta que la reutilización de este código en la publicación se rige por las Normas internas. Puede añadir este script a sus favoritos y usarlo en un gráfico.
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