Bullish Breakaway Dual Session-Publish-Consolidated FVG
Inspired by the FVG Concept:
This indicator is built on the Fair Value Gap (FVG) concept, with a focus on Consolidated FVG. Unlike traditional FVGs, this version only works within a defined session (e.g., ETH 18:00–17:00 or RTH 09:30–16:00).
Bullish consolidated FVG & Bullish breakaway candle
Begins when a new intraday low is printed. After that, the indicator searches for the 1st bullish breakaway candle, which must have its low above the high of the intraday low candle. Any candles in between are part of the consolidated FVG zone. Once the 1st breakaway forms, the indicator will shades the candle’s range (high to low). Then it will use this candle as an anchor to search for the 2nd, 3rd, etc. breakaways until the session ends.
Session Reset: Occurs at session close.
Repaint Behavior:
If a new intraday (or intra-session) low forms, earlier breakaway patterns are wiped, and the system restarts from the new low.
Counter:
A session-based counter at the top of the chart displays how many bullish consolidated FVGs have formed.
Settings
• Session Setup:
Choose ETH, RTH, or custom session. The indicator is designed for CME futures in New York timezone, but can be adjusted for other markets.
If nothing appears on your chart, check if you loaded it during an inactive session (e.g., weekend/Friday night).
• Max Zones to Show:
Default = 3 (recommended). You can increase, but 3 zones are usually most useful.
• Timeframe:
Best on 1m, 5m, or 15m. (If session range is big, try higher time frame)
Usage
1. Avoid Trading in Wrong Direction
• No bullish breakaway = No long trade.
• Prevents the temptation to countertrade in strong downtrends.
2. Catch the Trend Reversal
• When a bullish breakaway appears after an intraday low, it signals a potential reversal.
• You will need adjust position sizing, watch out liquidity hunt, and place stop loss.
• Best entries of your preferred choices: (this is your own trading edge)
Retest
Breakout
Engulf
MA cross over
Whatever your favorite approach
• Reversal signal is the strongest when price stays within/above the breakaway candle’s
range. Weak if it breaks below.
3. Higher Timeframe Confirmation
• 1m can give false reversals if new lows keep forming.
• 5m often provides cleaner signals and avoids premature reversals.
Failed Trade Example:
This indicator will repaint if a new intraday session low is updated. So it is possible to have a failed trade. Here is an example from the same session in 1m chart. However, if you enter the trade later at another bullish breakaway candle signal. The loss can be mitigated by the profit.
Therefore you should use smaller position size for your 1st trade. You should also considering using 5m chart to avoid 1m bull trap. In this example, if you use 5m chart, you can totally avoid this failed trade.
If you enter the trade, you will see the intraday low is stop loss hunted. You can also see the 1st bullish breakaway candle is super weak. There are a lot of candles below the breakaway candle low, so it is very possible to fail.
In the next chart, you can see the failed traded get stop loss hunted. However you can enter another trade with huge profit to win back the loss from the 1st trade if you follow the rule.
Summary
This indicator offers 3 main advantages:
1. Prevents wrong-direction trades.
2. Confirms trend entry after reversal signals.
3. Filters false positives using higher timeframes.
How to sharp your edge:
1. ⏳Extreme patience⏳: Do not guess the bottom during a downtrend before a confirmed bullish breakaway candle. If you get caught, have the courage to cut loss. This is literally the most important usage of this indicator. Again, this is the most important rule of this indicator and actually the hardest rule to follow.
2. 🛎Better Entry🛎: After a confirmed bullish breakaway, you will always have a good opportunity to enter the trade using established trading technique. Your edge will come from the position size, draw down, stop loss placement, risk/reward ratio.
3. ✂Cut loss fast✂: If you enter a trade according to the rule, but you are still not making profit for a period of time, and the price is below the low of the breakaway candle. It is very likely you may hit stop loss soon (intraday session low). It won't be a bad idea to cut loss before stop loss hit.
4. 🔂Reentry with confidence after stop loss🔂: a stop loss will not invalidate the indicator. If you see a second chance to reenter, you should still follow the trade guide and rule.
5. 🕔Time frame matter🕔: try 1m, 3m, 5m, 10m, 15m time frame. Over time, you should know what time frame work best for you and the market. Higher time frame will reduce the noise of false positive trade, but it comes with a higher stop loss placement and less max profit, however it may come with a lower draw down. Time frame will matter depending on the range of the session. If the session range is small (<0.5%), lower time frame is good. If session range is big (>1%), 5m time frame is better. Remember to wait for candle to close, if you use higher time frame.
Last Mention:
The indicator is only used for bullish side trading.
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Timeframe Resistance Evaluation And Detection - CoffeeKillerTREAD - Timeframe Resistance Evaluation And Detection Guide
🔔 Important Technical Limitation 🔔
**This indicator does NOT fetch true higher timeframe data.** Instead, it simulates higher timeframe levels by aggregating data from your current chart timeframe. This means:
- Results will vary depending on what chart timeframe you're viewing
- Levels may not match actual higher timeframe candle highs/lows
- You might miss important wicks or gaps that occurred between chart timeframe bars
- **Always verify levels against actual higher timeframe charts before trading**
Welcome traders! This guide will walk you through the TREAD (Timeframe Resistance Evaluation And Detection) indicator, a multi-timeframe analysis tool developed by CoffeeKiller that identifies support and resistance confluence across different time periods.(I am 50+ year old trader and always thought I was bad a teaching and explaining so you get a AI guide. I personally use this on the 5 minute chart with the default settings, but to each there own and if you can improve the trend detection methods please DM me. I would like to see the code. Thanks)
Core Components
1. Dual Timeframe Level Tracking
- Short Timeframe Levels: Tracks opening price extremes within shorter periods
- Long Timeframe Levels: Tracks actual high/low extremes within longer periods
- Dynamic Reset Mechanism: Levels reset at the start of each new timeframe period
- Momentum Detection: Identifies when levels change mid-period, indicating active price movement
2. Visual Zone System
- High Zones: Areas between long timeframe highs and short timeframe highs
- Low Zones: Areas between long timeframe lows and short timeframe lows
- Fill Coloring: Dynamic colors based on whether levels are static or actively changing
- Momentum Highlighting: Special colors when levels break during active periods
3. Customizable Display Options
- Multiple Plot Styles: Line, circles, or cross markers
- Flexible Timeframe Selection: Wide range of short and long timeframe combinations
- Color Customization: Separate colors for each level type and momentum state
- Toggle Controls: Show/hide different elements based on trading preference
Main Features
Timeframe Settings
- Short Timeframe Options: 15m, 30m, 1h, 2h, 4h
- Long Timeframe Options: 1h, 2h, 4h, 8h, 12h, 1D, 1W
- Recommended Combinations:
- Scalping: 15m/1h or 30m/2h
- Day Trading: 30m/4h or 1h/4h
- Swing Trading: 4h/1D or 1D/1W
Display Configuration
- Level Visibility: Toggle short/long timeframe levels independently
- Fill Zone Control: Enable/disable colored zones between levels
- Momentum Fills: Special highlighting for actively changing levels
- Line Customization: Width, style, and color options for all elements
Color System
- Short TF High: Default red for resistance levels
- Short TF Low: Default green for support levels
- Long TF High: Transparent red for broader resistance context
- Long TF Low: Transparent green for broader support context
- Momentum Colors: Brighter colors when levels are actively changing
Technical Implementation Details
How Level Tracking Works
The indicator uses a custom tracking function that:
1. Detects Timeframe Periods: Uses `time()` function to identify when new periods begin
2. Tracks Extremes: Monitors highest/lowest values within each period
3. Resets on New Periods: Clears tracking when timeframe periods change
4. Updates Mid-Period: Continues tracking if new extremes are reached
The Timeframe Limitation Explained
`pinescript
// What the indicator does:
short_tf_start = ta.change(time(short_timeframe)) != 0 // Detects 30m period start
= track_highest(open, short_tf_start) // BUT uses chart TF opens!
// What true multi-timeframe would be:
// short_tf_high = request.security(syminfo.tickerid, short_timeframe, high)
`
This means:
- On a 5m chart with 30m/4h settings: Tracks 5m bar opens during 30m and 4h windows
- On a 1m chart with same settings: Tracks 1m bar opens during 30m and 4h windows
- Results will be different between chart timeframes
- May miss important price action that occurred between your chart's bars
Visual Elements
1. Level Lines
- Short TF High: Upper resistance line from shorter timeframe analysis
- Short TF Low: Lower support line from shorter timeframe analysis
- Long TF High: Broader resistance context from longer timeframe
- Long TF Low: Broader support context from longer timeframe
2. Zone Fills
- High Zone: Area between long TF high and short TF high (potential resistance cluster)
- Low Zone: Area between long TF low and short TF low (potential support cluster)
- Regular Fill: Standard transparency when levels are static
- Momentum Fill: Enhanced visibility when levels are actively changing
3. Dynamic Coloring
- Static Periods: Normal colors when levels haven't changed recently
- Active Periods: Momentum colors when levels are being tested/broken
- Confluence Zones: Different intensities based on timeframe alignment
Trading Applications
1. Support/Resistance Trading
- Entry Points: Trade bounces from zone boundaries
- Confluence Areas: Focus on areas where short and long TF levels cluster
- Zone Breaks: Enter on confirmed breaks through entire zones
- Multiple Timeframe Confirmation: Stronger signals when both timeframes align
2. Range Trading
- Zone Boundaries: Use fill zones as range extremes
- Mean Reversion: Trade back toward opposite zone when price reaches extremes
- Breakout Preparation: Watch for momentum color changes indicating potential breakouts
- Risk Management: Place stops outside the opposite zone
3. Trend Following
- Direction Bias: Trade in direction of zone breaks
- Pullback Entries: Enter on pullbacks to broken zones (now support/resistance)
- Momentum Confirmation: Use momentum coloring to confirm trend strength
- Multiple Timeframe Alignment: Strongest trends when both timeframes agree
4. Scalping Applications
- Quick Bounces: Trade rapid moves between zone boundaries
- Momentum Signals: Enter when momentum colors appear
- Short-Term Targets: Use opposite zone as profit target
- Tight Stops: Place stops just outside current zone
Optimization Guide
1. Timeframe Selection
For Different Trading Styles:
- Scalping: 15m/1h - Quick levels, frequent updates
- Day Trading: 30m/4h - Balanced view, good for intraday moves
- Swing Trading: 4h/1D - Longer-term perspective, fewer false signals
- Position Trading: 1D/1W - Major structural levels
2. Chart Timeframe Considerations
**Important**: Your chart timeframe affects results
- Lower Chart TF: More granular level tracking, but may be noisy
- Higher Chart TF: Smoother levels, but may miss important price action
- Recommended: Use chart timeframe 2-4x smaller than short indicator timeframe
3. Display Settings
- Busy Charts: Disable fills, show only key levels
- Clean Analysis: Enable all fills and momentum coloring
- Multi-Monitor Setup: Use different color schemes for easy identification
- Mobile Trading: Increase line width for visibility
Best Practices
1. Level Verification
- Always Cross-Check: Verify levels against actual higher timeframe charts
- Multiple Timeframes: Check 2-3 different chart timeframes for consistency
- Price Action Confirmation: Wait for candlestick confirmation at levels
- Volume Analysis: Combine with volume for stronger confirmation
2. Risk Management
- Stop Placement: Use zones rather than exact prices for stops
- Position Sizing: Reduce size when zones are narrow (higher risk)
- Multiple Targets: Scale out at different zone boundaries
- False Break Protection: Allow for minor zone penetrations
3. Signal Quality Assessment
- Momentum Colors: Higher probability when momentum coloring appears
- Zone Width: Wider zones often provide stronger support/resistance
- Historical Testing: Backtest on your preferred timeframe combinations
- Market Conditions: Adjust sensitivity based on volatility
Advanced Features
1. Momentum Detection System
The indicator tracks when levels change mid-period:
`pinescript
short_high_changed = short_high != short_high and not short_tf_start
`
This identifies:
- Active level testing
- Potential breakout situations
- Increased market volatility
- Trend acceleration points
2. Dynamic Color System
Complex conditional logic determines fill colors:
- Static Zones: Regular transparency for stable levels
- Active Zones: Enhanced colors for changing levels
- Mixed States: Different combinations based on user preferences
- Custom Overrides: User can prioritize certain color schemes
3. Zone Interaction Analysis
- Convergence: When short and long TF levels approach each other
- Divergence: When timeframes show conflicting levels
- Alignment: When both timeframes agree on direction
- Transition: When one timeframe changes while other remains static
Common Issues and Solutions
1. Inconsistent Levels
Problem: Levels look different on various chart timeframes
Solution: Always verify against actual higher timeframe charts
2. Missing Price Action
Problem: Important wicks or gaps not reflected in levels
Solution: Use chart timeframe closer to indicator's short timeframe setting
3. Too Many Signals
Problem: Excessive level changes and momentum alerts
Solution: Increase timeframe settings or reduce chart timeframe granularity
4. Lagging Signals
Problem: Levels seem to update too slowly
Solution: Decrease chart timeframe or use more sensitive timeframe combinations
Recommended Setups
Conservative Approach
- Timeframes: 4h/1D
- Chart: 1h
- Display: Show fills only, no momentum coloring
- Use: Swing trading, position management
Aggressive Approach
- Timeframes: 15m/1h
- Chart: 5m
- Display: All features enabled, momentum highlighting
- Use: Scalping, quick reversal trades
Balanced Approach
- Timeframes: 30m/4h
- Chart: 15m
- Display: Selective fills, momentum on key levels
- Use: Day trading, multi-session analysis
Final Notes
**Remember**: This indicator provides a synthetic view of multi-timeframe levels, not true higher timeframe data. While useful for identifying potential confluence areas, always verify important levels by checking actual higher timeframe charts.
**Best Results When**:
- Combined with actual multi-timeframe analysis
- Used for confluence confirmation rather than primary signals
- Applied with proper risk management
- Verified against price action and volume
**DISCLAIMER**: This indicator and its signals are intended solely for educational and informational purposes. The timeframe limitation means results may not reflect true higher timeframe levels. Always conduct your own analysis and verify levels independently before making trading decisions. Trading involves significant risk of loss.
DrawZigZag🟩 OVERVIEW
This library draws zigzag lines for existing pivots. It is designed to be simple to use. If your script creates pivots and you want to join them up while handling edge cases, this library does that quickly and efficiently. If you want your pivots created for you, choose one of the many other zigzag libraries that do that.
🟩 HOW TO USE
Pine Script libraries contain reusable code for importing into indicators. You do not need to copy any code out of here. Just import the library and call the function you want.
For example, for version 1 of this library, import it like this:
import SimpleCryptoLife/DrawZigZag/1
See the EXAMPLE USAGE sections within the library for examples of calling the functions.
For more information on libraries and incorporating them into your scripts, see the Libraries section of the Pine Script User Manual.
🟩 WHAT IT DOES
I looked at every zigzag library on TradingView, after finishing this one. They all seemed to fall into two groups in terms of functionality:
• Create the pivots themselves, using a combination of Williams-style pivots and sometimes price distance.
• Require an array of pivot information, often in a format that uses user-defined types.
My library takes a completely different approach.
Firstly, it only does the drawing. It doesn't calculate the pivots for you. This isn't laziness. There are so many ways to define pivots and that should be up to you. If you've followed my work on market structure you know what I think of Williams pivots.
Secondly, when you pass information about your pivots to the library function, you only need the minimum of pivot information -- whether it's a High or Low pivot, the price, and the bar index. Pass these as normal variables -- bools, ints, and floats -- on the fly as your pivots confirm. It is completely agnostic as to how you derive your pivots. If they are confirmed an arbitrary number of bars after they happen, that's fine.
So why even bother using it if all it does it draw some lines?
Turns out there is quite some logic needed in order to connect highs and lows in the right way, and to handle edge cases. This is the kind of thing one can happily outsource.
🟩 THE RULES
• Zigs and zags must alternate between Highs and Lows. We never connect a High to a High or a Low to a Low.
• If a candle has both a High and Low pivot confirmed on it, the first line is drawn to the end of the candle that is the opposite to the previous pivot. Then the next line goes vertically through the candle to the other end, and then after that continues normally.
• If we draw a line up from a Low to a High pivot, and another High pivot comes in higher, we *extend* the line up, and the same for lines down. Yes this is a form of repainting. It is in my opinion the only way to end up with a correct structure.
• We ignore lower highs on the way up and higher lows on the way down.
🟩 WHAT'S COOL ABOUT THIS LIBRARY
• It's simple and lightweight: no exported user-defined types, no helper methods, no matrices.
• It's really fast. In my profiling it runs at about ~50ms, and changing the options (e.g., trimming the array) doesn't make very much difference.
• You only need to call one function, which does all the calculations and draws all lines.
• There are two variations of this function though -- one simple function that just draws lines, and one slightly more advanced method that modifies an array containing the lines. If you don't know which one you want, use the simpler one.
🟩 GEEK STUFF
• There are no dependencies on other libraries.
• I tried to make the logic as clear as I could and comment it appropriately.
• In the `f_drawZigZags` function, the line variable is declared using the `var` keyword *inside* the function, for simplicity. For this reason, it persists between function calls *only* if the function is called from the global scope or a local if block. In general, if a function is called from inside a loop , or multiple times from different contexts, persistent variables inside that function are re-initialised on each call. In this case, this re-initialisation would mean that the function loses track of the previous line, resulting in incorrect drawings. This is why you cannot call the `f_drawZigZags` function from a loop (not that there's any reason to). The `m_drawZigZagsArray` does not use any internal `var` variables.
• The function itself takes a Boolean parameter `_showZigZag`, which turns the drawings on and off, so there is no need to call the function conditionally. In the examples, we do call the functions from an if block, purely as an illustration of how to increase performance by restricting the amount of code that needs to be run.
🟩 BRING ON THE FUNCTIONS
f_drawZigZags(_showZigZag, _isHighPivot, _isLowPivot, _highPivotPrice, _lowPivotPrice, _pivotIndex, _zigzagWidth, _lineStyle, _upZigColour, _downZagColour)
This function creates or extends the latest zigzag line. Takes real-time information about pivots and draws lines. It does not calculate the pivots. It must be called once per script and cannot be called from a loop.
Parameters:
_showZigZag (bool) : Whether to show the zigzag lines.
_isHighPivot (bool) : Whether the current bar confirms a high pivot. Note that pivots are confirmed after the bar in which they occur.
_isLowPivot (bool) : Whether the current bar confirms a low pivot.
_highPivotPrice (float) : The price of the high pivot that was confirmed this bar. It is NOT the high price of the current bar.
_lowPivotPrice (float) : The price of the low pivot that was confirmed this bar. It is NOT the low price of the current bar.
_pivotIndex (int) : The bar index of the pivot that was confirmed this bar. This is not an offset. It's the `bar_index` value of the pivot.
_zigzagWidth (int) : The width of the zigzag lines.
_lineStyle (string) : The style of the zigzag lines.
_upZigColour (color) : The colour of the up zigzag lines.
_downZagColour (color) : The colour of the down zigzag lines.
Returns: The function has no explicit returns. As a side effect, it draws or updates zigzag lines.
method m_drawZigZagsArray(_a_zigZagLines, _showZigZag, _isHighPivot, _isLowPivot, _highPivotPrice, _lowPivotPrice, _pivotIndex, _zigzagWidth, _lineStyle, _upZigColour, _downZagColour, _trimArray)
Namespace types: array
Parameters:
_a_zigZagLines (array)
_showZigZag (bool) : Whether to show the zigzag lines.
_isHighPivot (bool) : Whether the current bar confirms a high pivot. Note that pivots are usually confirmed after the bar in which they occur.
_isLowPivot (bool) : Whether the current bar confirms a low pivot.
_highPivotPrice (float) : The price of the high pivot that was confirmed this bar. It is NOT the high price of the current bar.
_lowPivotPrice (float) : The price of the low pivot that was confirmed this bar. It is NOT the low price of the current bar.
_pivotIndex (int) : The bar index of the pivot that was confirmed this bar. This is not an offset. It's the `bar_index` value of the pivot.
_zigzagWidth (int) : The width of the zigzag lines.
_lineStyle (string) : The style of the zigzag lines.
_upZigColour (color) : The colour of the up zigzag lines.
_downZagColour (color) : The colour of the down zigzag lines.
_trimArray (bool) : If true, the array of lines is kept to a maximum size of two lines (the line elements are not deleted). If false (the default), the array is kept to a maximum of 500 lines (the maximum number of line objects a single Pine script can display).
Returns: This function has no explicit returns but it modifies a global array of zigzag lines.
UTSConvenienceToolsLibrary "UTSConvenienceTools"
Convenience tool library containing helper functions for drawing and charting.
isDarkColor(color)
Determines on base of the luminance of the given color if the color can be considered a 'dark' color. Usefull for determining the readable font color for arbitrary colored backgrounds. Credits out to:
Parameters:
color (color) : (color): The actual color value.
Returns: (bool): A boolean value.
smallLabelLowerRight(txt, yPos, bgColor)
Displays the specified `txt` in a small label at the `yPos` of the current bar. The label points to the lower right.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned above the candle pass 'high'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
smallLabelUpperRight(txt, yPos, bgColor)
Displays the specified `txt` in a small label at the `yPos` of the current bar. The label points to the upper right.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned below the candle pass 'low'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
smallLabelCenter(txt, yPos, bgColor)
Displays the specified `txt` in a small label at the `yPos` of the current bar. The label points to the center.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned above the candle pass 'high'. To have it positioned below the candle pass 'low'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
smallLabelDown(txt, yPos, bgColor)
Displays the specified `txt` in a small label at the `yPos` of the current bar. The label points down.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned above the candle pass 'high'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
smallLabelUp(txt, yPos, bgColor)
Displays the specified `txt` in a small label at the `yPos` of the current bar. The label points down.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned below the candle pass 'low'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
normalLabelLowerRight(txt, yPos, bgColor)
Displays the specified `txt` in a normal label at the `yPos` of the current bar. The label points to the lower right.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned above the candle pass 'high'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
normalLabelUpperRight(txt, yPos, bgColor)
Displays the specified `txt` in a normal label at the `yPos` of the current bar. The label points to the upper right.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned below the candle pass 'low'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
normalLabelCenter(txt, yPos, bgColor)
Displays the specified `txt` in a normal label at the `yPos` of the current bar. The label points to the center.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned above the candle pass 'high'. To have it positioned below the candle pass 'low'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
normalLabelDown(txt, yPos, bgColor)
Displays the specified `txt` in a normal label at the `yPos` of the current bar. The label points down.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned above the candle pass 'high'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
normalLabelUp(txt, yPos, bgColor)
Displays the specified `txt` in a normal label at the `yPos` of the current bar. The label points down.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned below the candle pass 'low'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
largeLabelLowerRight(txt, yPos, bgColor)
Displays the specified `txt` in a large label at the `yPos` of the current bar. The label points to the lower right.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned above the candle pass 'high'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
largeLabelUpperRight(txt, yPos, bgColor)
Displays the specified `txt` in a large label at the `yPos` of the current bar. The label points to the upper right.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned below the candle pass 'low'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
largeLabelCenter(txt, yPos, bgColor)
Displays the specified `txt` in a large label at the `yPos` of the current bar. The label points to the center.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned above the candle pass 'high'. To have it positioned below the candle pass 'low'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
largeLabelDown(txt, yPos, bgColor)
Displays the specified `txt` in a large label at the `yPos` of the current bar. The label points down.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned above the candle pass 'high'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
largeLabelUp(txt, yPos, bgColor)
Displays the specified `txt` in a large label at the `yPos` of the current bar. The label points down.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned below the candle pass 'low'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
autoLabelLowerRight(txt, yPos, bgColor)
Displays the specified `txt` in a auto label at the `yPos` of the current bar. The label points to the lower right.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned above the candle pass 'high'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
autoLabelUpperRight(txt, yPos, bgColor)
Displays the specified `txt` in a auto label at the `yPos` of the current bar. The label points to the upper right.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned below the candle pass 'low'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
autoLabelCenter(txt, yPos, bgColor)
Displays the specified `txt` in a auto label at the `yPos` of the current bar. The label points to the center.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned above the candle pass 'high'. To have it positioned below the candle pass 'low'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
autoLabelDown(txt, yPos, bgColor)
Displays the specified `txt` in a auto label at the `yPos` of the current bar. The label points down.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned above the candle pass 'high'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
autoLabelUp(txt, yPos, bgColor)
Displays the specified `txt` in a auto label at the `yPos` of the current bar. The label points down.
Parameters:
txt (string)
yPos (float) : (float): The y-position value. To have it positioned below the candle pass 'low'.
bgColor (color) : (color): The background color value.
Returns: (bool): A boolean value.
Fractal Breakout Trend Following System█ OVERVIEW
The Fractal Breakout Trend Following System is a custom technical analysis tool designed to pinpoint significant fractal pivot points and breakout levels. By analyzing price action through configurable pivot parameters, this indicator dynamically identifies key support and resistance zones. It not only marks crucial highs and lows on the chart but also signals potential trend reversals through real-time breakout detections, helping traders capture shifts in market momentum.
█ KEY FEATURES
Fractal Pivot Detection
Utilizes user-defined left and right pivot lengths to detect local highs (pivot highs) and lows (pivot lows). This fractal-based approach ensures that only meaningful price moves are considered, effectively filtering out minor market noise.
Dynamic Line Visualization
Upon confirmation of a pivot, the system draws a dynamic line representing resistance (from pivot highs) or support (from pivot lows). These lines extend across the chart until a breakout occurs, offering a continuous visual guide to key levels.
Trend Breakout Signals
Monitors for price crossovers relative to the drawn pivot lines. A crossover above a resistance line signals a bullish breakout, while a crossunder below a support line indicates a bearish move, thus updating the prevailing trend.
Pivot Labelling
Assigns labels such as "HH", "LH", "LL", or "HL" to detected pivots based on their relative values.
It uses the following designations:
HH (Higher High) : Indicates that the current pivot high is greater than the previous pivot high, suggesting continued upward momentum.
LH (Lower High) : Signals that the current pivot high is lower than the previous pivot high, which may hint at a potential reversal within an uptrend.
LL (Lower Low) : Shows that the current pivot low is lower than the previous pivot low, confirming sustained downward pressure.
HL (Higher Low) : Reveals that the current pivot low is higher than the previous pivot low, potentially indicating the beginning of an upward reversal in a downtrend.
These labels provide traders with immediate insight into the market structure and recent price behavior.
Customizable Visual Settings
Offers various customization options:
• Adjust pivot sensitivity via left/right pivot inputs.
• Toggle pivot labels on or off.
• Enable background color changes to reflect bullish or bearish trends.
• Choose preferred colors for bullish (e.g., green) and bearish (e.g., red) signals.
█ UNDERLYING METHODOLOGY & CALCULATIONS
Fractal Pivot Calculation
The script employs a sliding window technique using configurable left and right parameters to identify local highs and lows. Detected pivot values are sanitized to ensure consistency in subsequent calculations.
Dynamic Line Plotting
When a new pivot is detected, a corresponding line is drawn from the pivot point. This line extends until the price breaks the level, at which point it is reset. This method provides a continuous reference for support and resistance.
Trend Breakout Identification
By continuously monitoring price interactions with the pivot lines, the indicator identifies breakouts. A price crossover above a resistance line suggests a bullish breakout, while a crossunder below a support line indicates a bearish shift. The current trend is updated accordingly.
Pivot Label Assignment
The system compares the current pivot with the previous one to determine if the move represents a higher high, lower high, higher low, or lower low. This classification helps traders understand the underlying market momentum.
█ HOW TO USE THE INDICATOR
1 — Apply the Indicator
• Add the Fractal Breakout Trend Following System to your chart to begin visualizing dynamic pivot points and breakout signals.
2 — Adjust Settings for Your Market
• Pivot Detection – Configure the left and right pivot lengths for both highs and lows to suit your desired sensitivity:
- Use shorter lengths for more responsive signals in fast-moving markets.
- Use longer lengths to filter out minor fluctuations in volatile conditions.
• Visual Customization – Toggle the display of pivot labels and background color changes. Select your preferred colors for bullish and bearish trends.
3 — Interpret the Signals
• Support & Resistance Lines – Observe the dynamically drawn lines that represent key pivot levels.
• Pivot Labels – Look for labels like "HH", "LH", "LL", and "HL" to quickly assess market structure and trend behavior.
• Trend Signals – Watch for price crossovers and corresponding background color shifts to gauge bullish or bearish breakouts.
4 — Integrate with Your Trading Strategy
• Use the identified pivot points as potential support and resistance levels.
• Combine breakout signals with other technical indicators for comprehensive trade confirmation.
• Adjust the sensitivity settings to tailor the indicator to various instruments and market conditions.
█ CONCLUSION
The Fractal Breakout Trend Following System offers a robust framework for identifying critical fractal pivot points and potential breakout opportunities. With its dynamic line plotting, clear pivot labeling, and customizable visual settings, this indicator equips traders with actionable insights to enhance decision-making and optimize entry and exit strategies.
One Trading Setup for Life ICT [TradingFinder] Sweep Session FVG🔵 Introduction
ICT One Trading Setup for Life is a trading strategy based on liquidity and market structure shifts, utilizing the PM Session Sweep to determine price direction. In this strategy, the market first forms a price range during the PM Session (from 13:30 to 16:00 EST), which includes the highest high (PM Session High) and lowest low (PM Session Low).
In the next session, the price first touches one of these levels to trigger a Liquidity Hunt before confirming its trend by breaking the Change in State of Delivery (CISD) Level. After this confirmation, the price retraces toward a Fair Value Gap (FVG) or Order Block (OB), which serve as the best entry points in alignment with liquidity.
In financial markets, liquidity is the primary driver of price movement, and major market participants such as institutional investors and banks are constantly seeking liquidity at key levels. This process, known as Liquidity Hunt or Liquidity Sweep, occurs when the price reaches an area with a high concentration of orders, absorbs liquidity, and then reverses direction.
In this setup, the PM Session range acts as a trading framework, where its highs and lows function as key liquidity zones that influence the next session’s price movement. After the New York market opens at 9:30 EST, the price initially breaks one of these levels to capture liquidity.
However, for a trend shift to be confirmed, the CISD Level must be broken.
Once the CISD Level is breached, the price retraces toward an FVG or OB, which serve as optimal trade entry points.
Bullish Setup :
Bearish Setup :
🔵 How to Use
In this strategy, the PM Session range is first identified, which includes the highest high (PM Session High) and lowest low (PM Session Low) between 13:30 and 16:00 EST. In the following session, the price touches one of these levels for a Liquidity Hunt, followed by a break of the Change in State of Delivery (CISD) Level. The price then retraces toward a Fair Value Gap (FVG) or Order Block (OB), creating a trading opportunity.
This process can occur in two scenarios : bearish and bullish setups.
🟣 Bullish Setup
In a bullish scenario, the PM Session High and PM Session Low are identified. In the following session, the price first breaks the PM Session Low, absorbing liquidity. This process results in a Fake Breakout to the downside, misleading retail traders into taking short positions.
After the Liquidity Hunt, the CISD Level is broken, confirming a trend reversal. The price then retraces toward an FVG or OB, offering an optimal long entry opportunity.
The initial take-profit target is the PM Session High, but if higher timeframe liquidity levels exist, extended targets can be set.
The stop-loss should be placed below the Fake Breakout low or the first candle of the FVG.
🟣 Bearish Setup
In a bearish scenario, the market first defines its PM Session High and PM Session Low. In the next session, the price initially breaks the PM Session High, triggering a Liquidity Hunt. This movement often causes a Fake Breakout, misleading retail traders into taking incorrect positions.
After absorbing liquidity, the CISD Level breaks, indicating a shift in market structure. The price then retraces toward an FVG or OB, offering the best short entry opportunity.
The initial take-profit target is the PM Session Low, but if additional liquidity exists on higher timeframes, lower targets can be considered.
The stop-loss should be placed above the Fake Breakout high or the first candle of the FVG.
🔵 Setting
CISD Bar Back Check : The Bar Back Check option enables traders to specify the number of past candles checked for identifying the CISD Level, enhancing CISD Level accuracy on the chart.
Order Block Validity : The number of candles that determine the validity of an Order Block.
FVG Validity : The duration for which a Fair Value Gap remains valid.
CISD Level Validity : The duration for which a CISD Level remains valid after being broken.
New York PM Session : Defines the PM Session range from 13:30 to 16:00 EST.
New York AM Session : Defines the AM Session range from 9:30 to 16:00 EST.
Refine Order Block : Enables finer adjustments to Order Block levels for more accurate price responses.
Mitigation Level OB : Allows users to set specific reaction points within an Order Block, including: Proximal: Closest level to the current price. 50% OB: Midpoint of the Order Block. Distal: Farthest level from the current price.
FVG Filter : The Judas Swing indicator includes a filter for Fair Value Gap (FVG), allowing different filtering based on FVG width: FVG Filter Type: Can be set to "Very Aggressive," "Aggressive," "Defensive," or "Very Defensive." Higher defensiveness narrows the FVG width, focusing on narrower gaps.
Mitigation Level FVG : Like the Order Block, you can set price reaction levels for FVG with options such as Proximal, 50% OB, and Distal.
Demand Order Block : Enables or disables bullish Order Block.
Supply Order Block : Enables or disables bearish Order Blocks.
Demand FVG : Enables or disables bullish FVG.
Supply FVG : Enables or disables bearish FVGs.
Show All CISD : Enables or disables the display of all CISD Levels.
Show High CISD : Enables or disables high CISD levels.
Show Low CISD : Enables or disables low CISD levels.
🔵 Conclusion
The ICT One Trading Setup for Life is a liquidity-based strategy that leverages market structure shifts and precise entry points to identify high-probability trade opportunities. By focusing on PM Session High and PM Session Low, this setup first captures liquidity at these levels and then confirms trend shifts with a break of the Change in State of Delivery (CISD) Level.
Entering a trade after a retracement to an FVG or OB allows traders to position themselves at optimal liquidity levels, ensuring high reward-to-risk trades. When used in conjunction with higher timeframe bias, order flow, and liquidity analysis, this strategy can become one of the most effective trading methods within the ICT Concept framework.
Successful execution of this setup requires risk management, patience, and a deep understanding of liquidity dynamics. Traders can enhance their confidence in this strategy by conducting extensive backtesting and analyzing past market data to optimize their approach for different assets.
UVR Crypto TrendINDICATOR OVERVIEW: UVR CRYPTO TREND
The UVR Crypto Trend indicator is a custom-built tool designed specifically for cryptocurrency markets, utilizing advanced volatility, momentum, and trend-following techniques. It aims to identify trend reversals and provide buy and sell signals by analyzing multiple factors, such as price volatility(UVR), RSI (Relative Strength Index), CMF (Chaikin Money Flow), and EMA (Exponential Moving Average). The indicator is optimized for CRYPTO MARKETS only.
KEY FEATURES AND HOW IT WORKS
Volatility Analysis with UVR
The UVR (Ultimate Volatility Rate) is a proprietary calculation that measures market volatility by comparing significant price extremes and smoothing the data over time.
Purpose: UVR aims to reduce noise in low-volatility environments and highlight significant movements during higher-volatility periods. While it strives to improve filtering in low-volatility conditions, it does not guarantee perfect performance, making it a balanced and adaptable tool for dynamic markets like cryptocurrency.
HOW UVR (ULTIMATE VOLATILITY RATE) IS CALCULATED
UVR is calculated using a method that ensures precise measurement of market volatility by comparing price extremes across consecutive candles:
Volatility Components:
Two values are calculated to represent potential price fluctuations:
The absolute difference between the current candle's high and the previous candle's low:
Volatility Component 1=∣High−Low ∣
The absolute difference between the previous candle's high and the current candle's low:
Volatility Component 2=∣High −Low∣
Volatility Ratio:
The larger of the two components is selected as the Volatility Ratio, ensuring UVR captures the most significant movement:
Volatility Ratio=max(Volatility Component 1,Volatility Component 2)
Smoothing with SMMA:
To stabilize the volatility calculation, the Volatility Ratio is smoothed using a Smoothed Moving Average (SMMA) over a user-defined period (e.g., 14 candles):
UVR=(UVR(Previous)×(Period−1)+Volatility Ratio)/Period
This calculation ensures UVR adapts dynamically to market conditions, focusing on significant price movements while filtering out noise.
RSI FOR MOMENTUM DETECTION
RSI (Relative Strength Index) identifies overbought and oversold conditions.
Trend Confirmation at the 50 Level
RSI values crossing above 50 signal the potential start of an upward trend.
RSI values crossing below 50 indicate the potential start of a downward trend.
Key Reversals at Extreme Levels
RSI detects trend reversals at overbought (>70) and oversold (<30) levels.
For example:
Overbought Trend Reversal: RSI >70 followed by bearish price action signals a potential downtrend.
Oversold Trend Reversal: RSI <30 with bullish confirmation signals a potential uptrend.
Rare Extreme RSI Readings
Extreme levels, such as RSI <12 (oversold) or RSI >88 (overbought), are used to identify rare yet powerful reversals.
---HOW IT DIFFERS FROM OTHER INDICATORS---
Using UVR High and Low Values
The Ultimate Volatility Rate (UVR) focuses on analyzing the high and low price ranges of the market to measure volatility.
Unlike traditional trend indicators that rely primarily on momentum or moving average crossovers, UVR leverages price extremes to better identify trend reversals.
This approach ensures fewer false signals during low-volatility phases and more accurate trend detection during high-volatility conditions.
UVR as the Core Component
The indicator is fundamentally built around UVR as the primary filter, while supporting tools like RSI (momentum detection), CMF (volume confirmation), and EMA (trend validation) complement its functionality.
By integrating these additional components, the indicator provides a multidimensional analysis rather than relying solely on a single approach.
Dynamic Adaptation to Volatility
UVR dynamically adjusts to market conditions, striving to improve filtering in low-volatility phases. While not flawless, this approach minimizes false signals and adapts more effectively to varying levels of market activity.
Trend Clouds for Visual Guidance
UVR-based dynamic clouds visually mark high and low price areas, highlighting potential consolidation or retracement zones.
These clouds serve as guides for setting stop-loss or take-profit levels, offering clear risk management strategies.
BUY AND SELL SIGNAL LOGIC
BUY CONDITIONS
Momentum-Based Buy-Entry
RSI >50, CMF >0, and the close price is above EMA50.
The price difference between open and close exceeds a threshold based on UVR.
Oversold Reversal
RSI <30 and CMF >0 with a strong bullish candle (close > open and UVR-based sensitivity filter).
Breakout Confirmation
The price breaks above a previously identified resistance, with conditions for RSI and CMF supporting the breakout.
Reversal from Oversold RSI Extreme
RSI <12 on the previous candle with a strong rebound on the current candle with UVR confirmation filter.
SELL CONDITIONS
Momentum-Based Sell-Entry
RSI <50, CMF <0, and the close price is below EMA50.
The price difference between open and close exceeds the UVR threshold.
Overbought Reversal
RSI >70 with bearish price action (open > close and UVR-based sensitivity filter).
Breakdown Confirmation
The price breaks below a previously identified support, with RSI and CMF supporting the breakdown.
Reversal from Overbought RSI Extreme
RSI >88 on the previous candle with a bearish confirmation on the current candle with UVR confirmation filter.
BUY AND SELL SIGNALS VISUALIZATION
The UVR Crypto Trend Indicator visually represents buy and sell conditions using dynamic plots, making it easier for traders to interpret and act on the signals. Below is an explanation of the visual representation:
Buy Signals and Visualization
Signal Trigger:
A buy signal is generated when one of the defined Buy Conditions is met (e.g., RSI >50, CMF >0, price above EMA50).
Visual Representation:
A blue upward arrow appears at the candle where the buy condition is triggered.
A blue cloud forms above the price candles, representing the strength of the bullish trend. The cloud dynamically adapts to market volatility, using the UVR calculation to mark support zones or consolidation levels.
Purpose of the Blue Cloud:
It acts as a visual guide for price movements and stay horizontal when the trend is not moving up
Sell Signals and Visualization
Signal Trigger:
A sell signal is generated when one of the defined Sell Conditions is met (e.g., RSI <50, CMF <0, price below EMA50).
Visual Representation:
A red downward arrow appears at the candle where the sell condition is triggered.
A red cloud forms below the price candles, representing the strength of the bearish trend. Like the blue cloud, it uses the UVR calculation to dynamically mark resistance zones or potential retracement levels.
Purpose of the Red Cloud:
It acts as a visual guide for price movements and stay horizontal when the trend is not moving down.
CONCLUSION
The UVR Crypto Trend indicator provides a powerful tool for trend reversal detection by combining volatility analysis, momentum confirmation, and trend-following techniques. Its unique use of the Ultimate Volatility Rate (UVR) as a core element, supported by proven indicators like RSI, CMF, and EMA, ensures reliable and actionable signals tailored for the crypto market's dynamic nature. By leveraging UVR’s high and low price range analysis, it achieves a level of precision that traditional indicators lack, making it a high-performing system for cryptocurrency traders.
Nasan Hull-smoothed envelope The Nasan Hull-Smoothed Envelope indicator is a sophisticated overlay designed to track price movement within an adaptive "envelope." It dynamically adjusts to market volatility and trend strength, using a series of smoothing and volatility-correction techniques. Here's a detailed breakdown of its components, from the input settings to the calculated visual elements:
Inputs
look_back_length (500):
Defines the lookback period for calculating intraday volatility (IDV), smoothing it over time. A higher value means the indicator considers a longer historical range for volatility calculations.
sl (50):
Sets the smoothing length for the Hull Moving Average (HMA). The HMA smooths various lines, creating a balance between sensitivity and stability in trend signals.
mp (1.5):
Multiplier for IDV, scaling the volatility impact on the envelope. A higher multiplier widens the envelope to accommodate higher volatility, while a lower one tightens it.
p (0.625):
Weight factor that determines the balance between extremes (highest high and lowest low) and averages (sma of high and sma of low) in the high/low calculations. A higher p gives more weight to extremes, making the envelope more responsive to abrupt market changes.
Volatility Calculation (IDV)
The Intraday Volatility (IDV) metric represents the average volatility per bar as an exponentially smoothed ratio of the high-low range to the close price. This is calculated over the look_back_length period, providing a base volatility value which is then scaled by mp. The IDV enables the envelope to dynamically widen or narrow with market volatility, making it sensitive to current market conditions.
Composite High and Low Bands
The high and low bands define the upper and lower bounds of the envelope.
High Calculation
a_high:
Uses a multi-period approach to capture the highest highs over several intervals (5, 8, 13, 21, and 34 bars). Averaging these highs provides a more stable reference for the high end of the envelope, capturing both immediate and recent peak values.
b_high:
Computes the average of shorter simple moving averages (5, 8, and 13 bars) of the high prices, smoothing out fluctuations in the recent highs. This generates a balanced view of high price trends.
high_c:
Combines a_high and b_high using the weight p. This blend creates a composite high that balances between recent peaks and smoothed averages, making the upper envelope boundary adaptive to short-term price shifts.
Low Calculation
a_low and b_low:
Similar to the high calculation, these capture extreme lows and smooth low values over the same intervals. This approach creates a stable and adaptive lower bound for the envelope.
low_c:
Combines a_low and b_low using the weight p, resulting in a composite low that adjusts to price fluctuations while maintaining a stable trend line.
Volatility-Adjusted Bands
The final composite high (c_high) and composite low (c_low) bands are adjusted using IDV, which accounts for intraday volatility. When volatility is high, the bands expand; when it’s low, they contract, providing a visual representation of volatility-adjusted price bounds.
Basis Line
The basis line is a Hull Moving Average (HMA) of the average of c_high and c_low. The HMA is known for its smoothness and responsiveness, making the basis line a central trend indicator. The color of the basis line changes:
Green when the basis line is increasing.
Red when the basis line is decreasing.
This color-coded basis line serves as a quick visual reference for trend direction.
Short-Term Trend Strength Block
This component analyzes recent price action to assess short-term bullish and bearish momentum.
Conditions (green, red, green1, red1):
These are binary conditions that categorize price movements as bullish or bearish based on the close compared to the open and the close’s relationship with the exponential moving average (EMA). This separation helps capture different types of strength (above/below EMA) and different bullish or bearish patterns.
Composite Trend Strength Values:
Each of the bullish and bearish counts (above and below the EMA) is normalized, resulting in the following values:
green_EMAup_a and red_EMAup_a for bullish and bearish strength above the EMA.
green_EMAdown_a and red_EMAdown_a for bullish and bearish strength below the EMA.
Trend Strength (t_s):
This calculated metric combines the normalized trend strengths with extra weight to conditions above the EMA, giving more relevance to trends that have momentum behind them.
Enhanced Trend Strength
avg_movement:
Calculates the average absolute price movement over the short_term_length, providing a measurement of recent price activity that scales with volatility.
enhanced_t_s:
Multiplies t_s by avg_movement, creating an enhanced trend strength value that reflects both directional strength and the magnitude of recent price movement.
min and max:
Minimum and maximum percentile thresholds, respectively, based on enhanced_t_s for controlling the color gradient in the fill area.
Fill Area
The fill area between plot_c_high and plot_c_low is color-coded based on the enhanced trend strength (enhanced_t_s):
Gradient color transitions from blue to green based on the strength level, with blue representing weaker trends and green indicating stronger trends.
This visual fill provides an at-a-glance assessment of trend strength across the envelope, with color shifts highlighting momentum shifts.
Summary
The indicator’s purpose is to offer an adaptive price envelope that reflects real-time market volatility and trend strength. Here’s what each component contributes:
Basis Line: A trend-following line in the center that adjusts color based on trend direction.
Envelope (c_high, c_low): Adapts to volatility by expanding and contracting based on IDV, giving traders a responsive view of expected price bounds.
Fill Area: A color-gradient region representing trend strength within the envelope, helping traders easily identify momentum changes.
Overall, this tool helps to identify trend direction, market volatility, and strength of price movements, allowing for more informed decisions based on visual cues around price boundaries and trend momentum.
Futures Beta Overview with Different BenchmarksBeta Trading and Its Implementation with Futures
Understanding Beta
Beta is a measure of a security's volatility in relation to the overall market. It represents the sensitivity of the asset's returns to movements in the market, typically benchmarked against an index like the S&P 500. A beta of 1 indicates that the asset moves in line with the market, while a beta greater than 1 suggests higher volatility and potential risk, and a beta less than 1 indicates lower volatility.
The Beta Trading Strategy
Beta trading involves creating positions that exploit the discrepancies between the theoretical (or expected) beta of an asset and its actual market performance. The strategy often includes:
Long Positions on High Beta Assets: Investors might take long positions in assets with high beta when they expect market conditions to improve, as these assets have the potential to generate higher returns.
Short Positions on Low Beta Assets: Conversely, shorting low beta assets can be a strategy when the market is expected to decline, as these assets tend to perform better in down markets compared to high beta assets.
Betting Against (Bad) Beta
The paper "Betting Against Beta" by Frazzini and Pedersen (2014) provides insights into a trading strategy that involves betting against high beta stocks in favor of low beta stocks. The authors argue that high beta stocks do not provide the expected return premium over time, and that low beta stocks can yield higher risk-adjusted returns.
Key Points from the Paper:
Risk Premium: The authors assert that investors irrationally demand a higher risk premium for holding high beta stocks, leading to an overpricing of these assets. Conversely, low beta stocks are often undervalued.
Empirical Evidence: The paper presents empirical evidence showing that portfolios of low beta stocks outperform portfolios of high beta stocks over long periods. The performance difference is attributed to the irrational behavior of investors who overvalue riskier assets.
Market Conditions: The paper suggests that the underperformance of high beta stocks is particularly pronounced during market downturns, making low beta stocks a more attractive investment during volatile periods.
Implementation of the Strategy with Futures
Futures contracts can be used to implement the betting against beta strategy due to their ability to provide leveraged exposure to various asset classes. Here’s how the strategy can be executed using futures:
Identify High and Low Beta Futures: The first step involves identifying futures contracts that have high beta characteristics (more sensitive to market movements) and those with low beta characteristics (less sensitive). For example, commodity futures like crude oil or agricultural products might exhibit high beta due to their price volatility, while Treasury bond futures might show lower beta.
Construct a Portfolio: Investors can construct a portfolio that goes long on low beta futures and short on high beta futures. This can involve trading contracts on stock indices for high beta stocks and bonds for low beta exposures.
Leverage and Risk Management: Futures allow for leverage, which means that a small movement in the underlying asset can lead to significant gains or losses. Proper risk management is essential, using stop-loss orders and position sizing to mitigate the inherent risks associated with leveraged trading.
Adjusting Positions: The positions may need to be adjusted based on market conditions and the ongoing performance of the futures contracts. Continuous monitoring and rebalancing of the portfolio are essential to maintain the desired risk profile.
Performance Evaluation: Finally, investors should regularly evaluate the performance of the portfolio to ensure it aligns with the expected outcomes of the betting against beta strategy. Metrics like the Sharpe ratio can be used to assess the risk-adjusted returns of the portfolio.
Conclusion
Beta trading, particularly the strategy of betting against high beta assets, presents a compelling approach to capitalizing on market inefficiencies. The research by Frazzini and Pedersen emphasizes the benefits of focusing on low beta assets, which can yield more favorable risk-adjusted returns over time. When implemented using futures, this strategy can provide a flexible and efficient means to execute trades while managing risks effectively.
References
Frazzini, A., & Pedersen, L. H. (2014). Betting against beta. Journal of Financial Economics, 111(1), 1-25.
Fama, E. F., & French, K. R. (1992). The cross-section of expected stock returns. Journal of Finance, 47(2), 427-465.
Black, F. (1972). Capital Market Equilibrium with Restricted Borrowing. Journal of Business, 45(3), 444-454.
Ang, A., & Chen, J. (2010). Asymmetric volatility: Evidence from the stock and bond markets. Journal of Financial Economics, 99(1), 60-80.
By utilizing the insights from academic literature and implementing a disciplined trading strategy, investors can effectively navigate the complexities of beta trading in the futures market.
Iceberg Trade Revealer [CHE]Unveiling Iceberg Trades: A Deep Dive into Low Volatility Market Phases
Introduction
In the dynamic world of trading, hidden forces often influence market movements in ways that aren't immediately apparent. One such force is the phenomenon of iceberg trades—large orders that are concealed to prevent significant market impact. This presentation explores the concept of iceberg trades, explains why they are typically hidden during periods of low volatility, and introduces an indicator designed to reveal these elusive trades.
Agenda
1. Understanding Iceberg Trades
- Definition and Purpose
- Impact on Market Dynamics
2. The Low Volatility Concealment
- Why Low Volatility Phases?
- Strategies Behind Hiding Large Orders
3. Introducing the Iceberg Trade Revealer Indicator
- How the Indicator Works
- Key Components and Calculations
4. Demonstration and Use Cases
- Interpreting the Indicator Signals
- Practical Trading Applications
5. Conclusion
- Summarizing the Insights
- Q&A Session
1. Understanding Iceberg Trades
Definition and Purpose
- Iceberg Trades are large single orders divided into smaller lots to disguise the total order quantity.
- Traders use iceberg orders to minimize market impact and avoid unfavorable price movements.
Impact on Market Dynamics
- Concealed Volume: Iceberg orders hide true supply and demand levels.
- Price Stability: They prevent sudden spikes or drops by releasing orders gradually.
- Market Sentiment: Their presence can influence perceptions of market strength or weakness.
2. The Low Volatility Concealment
Why Low Volatility Phases?
- Less Market Attention: Low volatility periods attract fewer traders, making it easier to conceal large orders.
- Reduced Slippage: Prices are more stable, reducing the risk of executing orders at unfavorable prices.
- Strategic Advantage: Large players can accumulate or distribute positions without tipping off the market.
Strategies Behind Hiding Large Orders
- Order Splitting: Breaking down large orders into smaller pieces.
- Time Slicing: Executing orders over an extended period.
- Algorithmic Trading: Using sophisticated algorithms to optimize order execution.
3. Introducing the Iceberg Trade Revealer Indicator
How the Indicator Works
- Core Thesis: Iceberg trades can be detected by analyzing periods of unusually low volatility.
- Volatility Analysis: Uses the Average True Range (ATR) and Bollinger Bands to identify low volatility phases.
- Signal Generation: Marks periods where iceberg trades are likely occurring.
Key Components and Calculations
1. Average True Range (ATR)
- Measures market volatility over a specified period.
- Lower ATR values indicate less price movement.
2. Bollinger Bands
- Creates a volatility envelope around the ATR.
- Bands tighten during low volatility and widen during high volatility.
3. Timeframe Adjustments
- Utilizes multiple timeframes to enhance signal accuracy.
- Options for auto, multiplier, or manual timeframe selection.
4. Signal Conditions
- Iceberg Trade Detection: ATR falls below the lower Bollinger Band.
- Revealed Volatility: ATR rises above the upper Bollinger Band, indicating potential market moves after iceberg trades.
4. Demonstration and Use Cases
Interpreting the Indicator Signals
- Iceberg Trade Zones: Highlighted areas where large hidden orders are likely.
- Revealed Volatility Zones: Areas indicating the market's response to the execution of iceberg trades.
Practical Trading Applications
- Entry and Exit Points: Use signals to time trades alongside institutional activity.
- Risk Management: Adjust strategies during detected low volatility phases.
- Market Analysis: Gain insights into underlying market mechanics.
5. Conclusion
Summarizing the Insights
- Iceberg Trades play a significant role in market movements, especially when concealed during low volatility phases.
- The Iceberg Trade Revealer Indicator provides a tool to uncover these hidden activities, offering traders a strategic edge.
- Understanding and utilizing this indicator can enhance trading decisions by aligning them with the actions of major market players.
Best regards Chervolino ( Volker )
Q&A Session
- Questions and Discussions: Open the floor for any queries or further explanations.
Thank You!
By delving into the hidden aspects of market activity, traders can better navigate the complexities of financial markets. The Iceberg Trade Revealer Indicator serves as a bridge between observable market data and the concealed strategies of large institutions.
References
- Average True Range (ATR): A technical analysis indicator that measures market volatility.
- Bollinger Bands: A volatility indicator that creates a band of three lines which are plotted in relation to a security's price.
- Iceberg Orders: Large orders divided into smaller lots to hide the actual order quantity.
Note: Always consider multiple factors when making trading decisions. Indicators provide tools, but they do not guarantee results.
Educational Content Disclaimer:
Disclaimer:
The content provided, including all code and materials, is strictly for educational and informational purposes only. It is not intended as, and should not be interpreted as, financial advice, a recommendation to buy or sell any financial instrument, or an offer of any financial product or service. All strategies, tools, and examples discussed are provided for illustrative purposes to demonstrate coding techniques and the functionality of Pine Script within a trading context.
Any results from strategies or tools provided are hypothetical, and past performance is not indicative of future results. Trading and investing involve high risk, including the potential loss of principal, and may not be suitable for all individuals. Before making any trading decisions, please consult with a qualified financial professional to understand the risks involved.
By using this script, you acknowledge and agree that any trading decisions are made solely at your discretion and risk.
Price Action Smart Money Concepts [BigBeluga]THE SMART MONEY CONCEPTS Toolkit
The Smart Money Concepts [ BigBeluga ] is a comprehensive toolkit built around the principles of "smart money" behavior, which refers to the actions and strategies of institutional investors.
The Smart Money Concepts Toolkit brings together a suite of advanced indicators that are all interconnected and built around a unified concept: understanding and trading like institutional investors, or "smart money." These indicators are not just randomly chosen tools; they are features of a single overarching framework, which is why having them all in one place creates such a powerful system.
This all-in-one toolkit provides the user with a unique experience by automating most of the basic and advanced concepts on the chart, saving them time and improving their trading ideas.
Real-time market structure analysis simplifies complex trends by pinpointing key support, resistance, and breakout levels.
Advanced order block analysis leverages detailed volume data to pinpoint high-demand zones, revealing internal market sentiment and predicting potential reversals. This analysis utilizes bid/ask zones to provide supply/demand insights, empowering informed trading decisions.
Imbalance Concepts (FVG and Breakers) allows traders to identify potential market weaknesses and areas where price might be attracted to fill the gap, creating opportunities for entry and exit.
Swing failure patterns help traders identify potential entry points and rejection zones based on price swings.
Liquidity Concepts, our advanced liquidity algorithm, pinpoints high-impact events, allowing you to predict market shifts, strong price reactions, and potential stop-loss hunting zones. This gives traders an edge to make informed trading decisions based on liquidity dynamics.
🔵 FEATURES
The indicator has quite a lot of features that are provided below:
Swing market structure
Internal market structure
Mapping structure
Adjustable market structure
Strong/Weak H&L
Sweep
Volumetric Order block / Breakers
Fair Value Gaps / Breakers (multi-timeframe)
Swing Failure Patterns (multi-timeframe)
Deviation area
Equal H&L
Liquidity Prints
Buyside & Sellside
Sweep Area
Highs and Lows (multi-timeframe)
🔵 BASIC DEMONSTRATION OF ALL FEATURES
1. MARKET STRUCTURE
The preceding image illustrates the market structure functionality within the Smart Money Concepts indicator.
➤ Solid lines: These represent the core indicator's internal structure, forming the foundation for most other components. They visually depict the overall market direction and identify major reversal points marked by significant price movements (denoted as 'x').
➤ Internal Structure: These represent an alternative internal structure with the potential to drive more rapid market shifts. This is particularly relevant when a significant gap exists in the established swing structure, specifically between the Break of Structure (BOS) and the most recent Change of High/Low (CHoCH). Identifying these formations can offer opportunities for quicker entries and potential short-term reversals.
➤ Sweeps (x): These signify potential turning points in the market where liquidity is removed from the structure. This suggests a possible trend reversal and presents crucial entry opportunities. Sweeps are identified within both swing and internal structures, providing valuable insights for informed trading decisions.
➤ Mapping structure: A tool that automatically identifies and connects significant price highs and lows, creating a zig-zag pattern. It visualizes market structure, highlights trends, support/resistance levels, and potential breakouts. Helps traders quickly grasp price action patterns and make informed decisions.
➤ Color-coded candles based on market structure: These colors visually represent the underlying market structure, making it easier for traders to quickly identify trends.
➤ Extreme H&L: It visualizes market structure with extreme high and lows, which gives perspective for macro Market Structure.
2. VOLUMETRIC ORDER BLOCKS
Order blocks are specific areas on a financial chart where significant buying or selling activity has occurred. These are not just simple zones; they contain valuable information about market dynamics. Within each of these order blocks, volume bars represent the actual buying and selling activity that took place. These volume bars offer deeper insights into the strength of the order block by showing how much buying or selling power is concentrated in that specific zone.
Additionally, these order blocks can be transformed into Breaker Blocks. When an order block fails—meaning the price breaks through this zone without reversing—it becomes a breaker block. Breaker blocks are particularly useful for trading breakouts, as they signal that the market has shifted beyond a previously established zone, offering opportunities for traders to enter in the direction of the breakout.
Here's a breakdown:
➤ Bear Order Blocks (Red): These are zones where a lot of selling happened. Traders see these areas as places where sellers were strong, pushing the price down. When the price returns to these zones, it might face resistance and drop again.
➤ Bull Order Blocks (Green): These are zones where a lot of buying happened. Traders see these areas as places where buyers were strong, pushing the price up. When the price returns to these zones, it might find support and rise again.
These Order Blocks help traders identify potential areas for entering or exiting trades based on past market activity. The volume bars inside blocks show the amount of trading activity that occurred in these blocks, giving an idea of the strength of buying or selling pressure.
➤ Breaker Block: When an order block fails, meaning the price breaks through this zone without reversing, it becomes a breaker block. This indicates a significant shift in market liquidity and structure.
➤ A bearish breaker block occurs after a bullish order block fails. This typically happens when there's an upward trend, and a certain level that was expected to support the market's rise instead gives way, leading to a sharp decline. This decline indicates that sellers have overcome the buyers, absorbing liquidity and shifting the sentiment from bullish to bearish.
Conversely, a bullish breaker block is formed from the failure of a bearish order block. In a downtrend, when a level that was expected to act as resistance is breached, and the price shoots up, it signifies that buyers have taken control, overpowering the sellers.
3. FAIR VALUE GAPS:
A fair value gap (FVG), also referred to as an imbalance, is an essential concept in Smart Money trading. It highlights the supply and demand dynamics. This gap arises when there's a notable difference between the volume of buy and sell orders. FVGs can be found across various asset classes, including forex, commodities, stocks, and cryptocurrencies.
FVGs in this toolkit have the ability to detect raids of FVG which helps to identify potential price reversals.
Mitigation option helps to change from what source FVGs will be identified: Close, Wicks or AVG.
4. SWING FAILURE PATTERN (SFP):
The Swing Failure Pattern is a liquidity engineering pattern, generally used to fill large orders. This means, the SFP generally occurs when larger players push the price into liquidity pockets with the sole objective of filling their own positions.
SFP is a technical analysis tool designed to identify potential market reversals. It works by detecting instances where the price briefly breaks a previous high or low but fails to maintain that breakout, quickly reversing direction.
How it works:
Pattern Detection: The indicator scans for price movements that breach recent highs or lows.
Reversal Confirmation: If the price quickly reverses after breaching these levels, it's identified as an SFP.
➤ SFP Display:
Bullish SFP: Marked with a green symbol when price drops below a recent low before reversing upwards.
Bearish SFP: Marked with a red symbol when price rises above a recent high before reversing downwards.
➤ Deviation Levels: After detecting an SFP, the indicator projects white lines showing potential price deviation:
For bullish SFPs, the deviation line appears above the current price.
For bearish SFPs, the deviation line appears below the current price.
These deviation levels can serve as a potential trading opportunity or areas where the reversal might lose momentum.
With Volume Threshold and Filtering of SFP traders can adjust their trading style:
Volume Threshold: This setting allows traders to filter SFPs based on the volume of the reversal candle. By setting a higher volume threshold, traders can focus on potentially more significant reversals that are backed by higher trading activity.
SFP Filtering: This feature enables traders to filter SFP detection. It includes parameters such as:
5. LIQUIDITY CONCEPTS:
➤ Equal Lows (EQL) and Equal Highs (EQH) are important concepts in liquidity-based trading.
EQL: A series of two or more swing lows that occur at approximately the same price level.
EQH: A series of two or more swing highs that occur at approximately the same price level.
EQLs and EQHs are seen as potential liquidity pools where a large number of stop loss orders or limit orders may be clustered. They can be used as potential reverse points for trades.
This multi-period feature allows traders to select less and more significant EQL and EQH:
➤ Liquidity wicks:
Liquidity wicks are a minor representation of a stop-loss hunt during the retracement of a pivot point:
➤ Buy and Sell side liquidity:
The buy side liquidity represents a concentration of potential buy orders below the current price level. When price moves into this area, it can lead to increased buying pressure due to the execution of these orders.
The sell side liquidity indicates a pool of potential sell orders below the current price level. Price movement into this area can result in increased selling pressure as these orders are executed.
➤ Sweep Liquidation Zones:
Sweep Liquidation Zones are crucial for understanding market structure and potential future price movements. They provide insights into areas where significant market participants have been forced out of their positions, potentially setting up new trading opportunities.
🔵 USAGE & EXAMPLES
The core principle behind the success of this toolkit lies in identifying "confluence." This refers to the convergence of multiple trading indicators all signaling the same information at a specific point or area. By seeking such alignment, traders can significantly enhance the likelihood of successful trades.
MS + OBs
The chart illustrates a highly bullish setup where the price is rejecting from a bullish order block (POC), while simultaneously forming a bullish Swing Failure Pattern (SFP). This occurs after an internal structure change, marked by a bullish Change of Character (CHoCH). The price broke through a bearish order block, transforming it into a breaker block, further confirming the bullish momentum.
The combination of these elements—bullish order blocks, SFP, and CHoCH—creates a powerful bullish signal, reinforcing the potential for upward movement in the market.
SFP + Bear OB
This chart above displays a bearish setup with a high probability of a price move lower. The price is currently rejecting from a bear order block, which represents a key resistance area where significant selling pressure has previously occurred. A Swing Failure Pattern (SFP) has also formed near this bear order block, indicating that the price briefly attempted to break above a recent high but failed to sustain that upward movement. This failure suggests that buyers are losing momentum, and the market could be preparing for a move to the downside.
Additionally, we can toggle on the Deviation Area in the SFP section to highlight potential levels where price deviation might occur. These deviation areas represent zones where the price is likely to react after the Swing Failure Pattern:
BUY – SELL sides + EQL
The chart showcases a bullish setup with a high probability of price breaking out of the current sell-side resistance level. The market structure indicates a formation of Equal Lows (EQL), which often suggests a build-up of liquidity that could drive the price higher.
The presence of strong buy-side pressure (69%), indicated by the green zone at the bottom, reinforces this bullish outlook. This area represents a key support zone where buyers are outpacing sellers, providing the foundation for a potential upward breakout.
EQL + Bull ChoCh
This chart illustrates a potential bullish setup, driven by the formation of Equal Lows (EQL) followed by a bullish Change of Character (CHoCH). The presence of Equal Lows often signals a liquidity build-up, which can lead to a reversal when combined with additional bullish signals.
Liquidity grab + Bull ChoCh + FVGs
This chart demonstrates a strong bullish scenario, where several important market dynamics are at play. The price begins its upward momentum from Liquidity grab following a bullish Change of Character (CHoCH), signaling the transition from a bearish phase to a bullish one.
As the price progresses, it performs liquidity grabs, which serve to gather the necessary fuel for further movement. These liquidity grabs often occur before significant price surges, as large market participants exploit these areas to accumulate positions before pushing the price higher.
The chart also highlights a market imbalance area, showing strong momentum as the price moves swiftly through this zone.
In this examples, we see how the combination of multiple “smart money” tools helps identify a potential trade opportunities. This is just one of the many scenarios that traders can spot using this toolkit. Other combinations—such as order blocks, liquidity grabs, fair value gaps, and Swing Failure Patterns (SFPs)—can also be layered on top of these concepts to further refine your trading strategy.
🔵 SETTINGS
Window: limit calculation period
Swing: limit drawing function
Mapping structure: show structural points
Algorithmic Logic: (Extreme-Adjusted) Use max high/low or pivot point calculation
Algorithmic loopback: pivot point look back
Show Last: Amount of Order block to display
Hide Overlap: hide overlapping order blocks
Construction: Size of the order blocks
Fair value gaps: Choose between normal FVG or Breaker FVG
Mitigation: (close - wick - avg) point to mitigate the order block/imbalance
SFP lookback: find a higher / lower point to improve accuracy
Threshold: remove less relevant SFP
Equal H&L: (short-mid-long term) display longer term
Liquidity Prints: Shows wicks of candles where liquidity was grabbed
Sweep Area: Identify Sweep Liquidation areas
By combining these indicators in one toolkit, traders are equipped with a comprehensive suite of tools that address every angle of the Smart Money Concept. Instead of relying on disparate tools spread across various platforms, having them integrated into a single, cohesive system allows traders to easily see confluence and make more informed trading decisions.
All Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws and sends alerts for all of the harmonic patterns in my public library as they occur. The patterns included are as follows:
• Bearish 5-0
• Bullish 5-0
• Bearish ABCD
• Bullish ABCD
• Bearish Alternate Bat
• Bullish Alternate Bat
• Bearish Bat
• Bullish Bat
• Bearish Butterfly
• Bullish Butterfly
• Bearish Cassiopeia A
• Bullish Cassiopeia A
• Bearish Cassiopeia B
• Bullish Cassiopeia B
• Bearish Cassiopeia C
• Bullish Cassiopeia C
• Bearish Crab
• Bullish Crab
• Bearish Deep Crab
• Bullish Deep Crab
• Bearish Cypher
• Bullish Cypher
• Bearish Gartley
• Bullish Gartley
• Bearish Shark
• Bullish Shark
• Bearish Three-Drive
• Bullish Three-Drive
█ 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.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
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.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
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.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
█ INPUTS
• Change pattern and label colours
• Show or hide patterns individually
• Adjust pattern tolerances
• Set or remove alerts for individual patterns
█ NOTES
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.
Long EMA Strategy with Advanced Exit OptionsThis strategy is designed for traders seeking a trend-following system with a focus on precision and adaptability.
**Core Strategy Concept**
The essence of this strategy lies in use of Exponential Moving Averages (EMAs) to identify potential long (buy) positions based on the relative positions of short-term, medium-term, and long-term EMAs. The use of EMAs is a classic yet powerful approach to trend detection, as these indicators smooth out price data over time, emphasizing the direction of recent price movements and potentially signaling the beginning of new trends.
**Customizable Parameters**
- **EMA Periods**: Users can define the periods for three EMAs - long-term, medium-term, and short-term - allowing for a tailored approach to capture trends based on individual trading styles and market conditions.
- **Volatility Filter**: An optional Average True Range (ATR)-based volatility filter can be toggled on or off. When activated, it ensures that trades are only entered when market volatility exceeds a user-defined threshold, aiming to filter out entries during low-volatility periods which are often characterized by indecisive market movements.
- **Trailing Stop Loss**: A trailing stop loss mechanism, expressed as a percentage of the highest price achieved since entry, provides a dynamic way to manage risk by allowing profits to run while cutting losses.
- **EMA Exit Condition**: This advanced exit option enables closing positions when the short-term EMA crosses below the medium-term EMA, serving as a signal that the immediate trend may be reversing.
- **Close Below EMA Exit**: An additional exit condition, which is disabled by default, allows positions to be closed if the price closes below a user-selected EMA. This provides an extra layer of flexibility and risk management, catering to traders who prefer to exit positions based on specific EMA thresholds.
**Operational Mechanics**
Upon activation, the strategy evaluates the current price in relation to the set EMAs. A long position is considered when the current price is above the long-term EMA, and the short-term EMA is above the medium-term EMA. This setup aims to identify moments where the price momentum is strong and likely to continue.
The strategy's versatility is further enhanced by its optional settings:
- The **Volatility Filter** adjusts the sensitivity of the strategy to market movements, potentially improving the quality of the entries during volatile market conditions.
The Average True Range (ATR) is a key component of this filter, providing a measure of market volatility by calculating the average range between the high and low prices over a specified number of periods. Here's how you can adjust the volatility filter settings for various market conditions, focusing on filtering out low-volatility markets:
Setting Examples for Volatility Filter
1. High Volatility Markets (e.g., Cryptocurrencies, Certain Forex Pairs):
ATR Periods: 14 (default)
ATR Multiplier: Setting the multiplier to a lower value, such as 1.0 or 1.2, can be beneficial in high-volatility markets. This sensitivity allows the strategy to react to volatility changes more quickly, ensuring that you're entering trades during periods of significant movement.
2. Medium Volatility Markets (e.g., Major Equity Indices, Medium-Volatility Forex Pairs):
ATR Periods: 14 (default)
ATR Multiplier: A multiplier of 1.5 (default) is often suitable for medium volatility markets. It provides a balanced approach, ensuring that the strategy filters out low-volatility conditions without being overly restrictive.
3. Low Volatility Markets (e.g., Some Commodities, Low-Volatility Forex Pairs):
ATR Periods: Increasing the ATR period to 20 or 25 can smooth out the volatility measure, making it less sensitive to short-term fluctuations. This adjustment helps in focusing on more significant trends in inherently stable markets.
ATR Multiplier: Raising the multiplier to 2.0 or even 2.5 increases the threshold for volatility, effectively filtering out low-volatility conditions. This setting ensures that the strategy only triggers trades during periods of relatively higher volatility, which are more likely to result in significant price movements.
How to Use the Volatility Filter for Low-Volatility Markets
For traders specifically interested in filtering out low-volatility markets, the key is to adjust the ATR Multiplier to a higher level. This adjustment increases the threshold required for the market to be considered sufficiently volatile for trade entries. Here's a step-by-step guide:
Adjust the ATR Multiplier: Increase the ATR Multiplier to create a higher volatility threshold. A multiplier of 2.0 to 2.5 is a good starting point for very low-volatility markets.
Fine-Tune the ATR Periods: Consider lengthening the ATR calculation period if you find that the strategy is still entering trades in undesirable low-volatility conditions. A longer period provides a more averaged-out measure of volatility, which might better suit your needs.
Monitor and Adjust: Volatility is not static, and market conditions can change. Regularly review the performance of your strategy in the context of current market volatility and adjust the settings as necessary.
Backtest in Different Conditions: Before applying the strategy live, backtest it across different market conditions with your adjusted settings. This process helps ensure that your approach to filtering low-volatility conditions aligns with your trading objectives and risk tolerance.
By fine-tuning the volatility filter settings according to the specific characteristics of the market you're trading in, you can enhance the performance of this strategy
- The **Trailing Stop Loss** and **EMA Exit Conditions** provide two layers of exit strategies, focusing on capital preservation and profit maximization.
**Visualizations**
For clarity and ease of use, the strategy plots the three EMAs and, if enabled, the ATR threshold on the chart. These visual cues not only aid in decision-making but also help in understanding the market's current trend and volatility state.
**How to Use**
Traders can customize the EMA periods to fit their trading horizon, be it short, medium, or long-term trading. The volatility filter and exit options allow for further customization, making the strategy adaptable to different market conditions and personal risk tolerance levels.
By offering a blend of trend-following principles with advanced risk management features, this strategy aims to cater to a wide range of trading styles, from cautious to aggressive. Its strength lies in its flexibility, allowing traders to fine-tune settings to their specific needs, making it a potentially valuable tool in the arsenal of any trader looking for a disciplined approach to navigating the markets.
Fake BreakoutThis indicator detect fake breakout on previous day high/low and option previous swing high and low
Rule Detect Fake Breakout On Previous Day High/Low Or Swing high low Fake Breakout -
1) Detect previous day high/low or swing high/low
2)
A) If price revisit on previous day high/swing high look for upside breakout after input
number of candle (1-5) price came back to previous high and breakout happen downside
it show sell because its fake breakout of previous day high or swing high
B) If price revisit on previous day low/swing low look for downside breakout after input
number of candle (1-5) price came back to previous low and breakout upside of previous
day low it show Buy because its fake breakout of previous day low or swing low
Disclaimer -Traders can use this script as a starting point for further customization or as a reference for developing their own trading strategies. It's important to note that past performance is not indicative of future results, and thorough testing and validation are recommended before deploying any trading strategy.
Modified Box Plots
Box Plot Concept: The script creates a modified box plot where the central box represents the range within 1 standard deviation from the midpoint (hl2), which is the average of the high and low prices. The whiskers extend to cover a range of 3 standard deviations, providing a visualization of the overall price distribution.
Color Scheme: The color of the modified box plot is determined based on comparisons between the current midpoint (g) and the +/- 1 SD values of the previous candle (i and j ). If g > i , the color is green; if g < j , it's red; otherwise, it's yellow. This color scheme allows users to quickly assess the relationship between the current market conditions and recent price movements. if the mid point price is above/below +/- 1 SD values of the previous candle the price movement is considered as significant.
Plotcandle Function: The plotcandle function is employed to visualize the modified box plot. The color of the box is dynamically determined by the candleColor variable, which reflects the current market state based on the color scheme. The wicks, represented by lines extending from the box, are colored in white.
Explanation of Box and Wicks:
Box (Open and Close): In this modified box plot, the box does not represent traditional open and close prices. Instead, it signifies a range within 1 standard deviation of the midpoint (hl2), providing insight into the typical price variation around the average of the high and low.
Wicks (High and Low): The wicks extend from the box to cover a range of 3 standard deviations from the midpoint (hl2). They do not correspond to the actual high and low prices but serve as a visualization of potential outliers in the price distribution. The actual high and low prices are also plotted as green and red dots when the actual high and low prices fall outside the +/- 3SD wicks (whiskers) and also indicate the prices does not fit the distribution based on the recent price volatility.
In summary, this modified box plot offers a unique perspective on price distribution by considering standard deviations from the midpoint. The color scheme aids in quickly assessing market conditions, and the wicks provide insights into the potential presence of outliers. It's essential to understand that the box and wicks do not represent traditional open, close, high, and low prices but offer a different way to visualize and interpret intraday price movements.
Step by step explanation
Here's the step-by-step explanation:
a = ta.highest(high, 7): Calculates the highest high in the last 7 bars.
b = ta.lowest(low, 7): Calculates the lowest low in the last 7 bars.
c = ta.stdev(hl2, 7): Calculates the standard deviation of the average of high and low prices (hl2) over the last 7 bars.
d = (a - b) / c: Computes a scaling factor d based on the highest, lowest, and standard deviation. This factor is used to scale the intraday range in the next steps.
e = (high - low): Calculates the intraday range of the candle.
f = e / d: Estimates the standard deviation (f) of the intraday candle price using the scaling factor d.
g = hl2: Defines the intraday midpoint of the candle, which is the average of high and low prices.
i = g + 1 * f, j = g - 1 * f, k = g + 3 * f, l = g - 3 * f: Calculate values representing coverage of +1 SD, -1 SD, +3 SD, and -3 SD from the intraday midpoint.
The script utilizes historical high, low, and standard deviation values to dynamically estimate the standard deviation of the intraday candle, providing a measure of volatility for the current price range. This estimation is then used to construct a modified box plot around the intraday midpoint.
In addition I have included a 7 period hull moving average just to see the overall trend direction.
Conclusion:
The "Nasan Modified Box Plots" indicator on TradingView is a dynamic visualization tool that provides insights into the distribution of price ranges over a specified period. It adapts to changing market conditions by incorporating historical data in the calculation of a scaling factor (d). The indicator constructs a modified box plot, where the size of the box and the whiskers is determined by recent volatility
Support & Resistance IndicatorThe MACD Support & Resistance indicator is an enhanced tool to better visualize potential supply (resistance) and demand (support) zones based on the MACD indicator. It combines the strength of the MACD with recent price highs and lows to depict potential breakout or reversal areas in the market.
Features:
MACD Settings: Users can adjust the fast length, slow length, source of MACD, signal smoothing, and MA type for both the oscillator and the signal line.
Dynamic Color Settings: Customize the color of supply boxes, demand boxes, and closed boxes for improved visualization.
Table View: An optional table can be displayed showing the average MACD high and low values, with customizable table position, size, background color, and text color.
Historical MACD Average: The indicator uses a historical average of MACD pivot highs and lows to determine potential support and resistance zones.
Real-Time Zone Detection: The indicator plots 'High Boxes' when the MACD crosses above its average high and 'Low Boxes' when it crosses below its average low, which signifies potential breakout or reversal zones.
How It Works:
The MACD line is calculated using user-defined moving average types (either EMA or SMA).
Pivot highs and pivot lows of the MACD are identified over a specified period.
Historical MACD highs and lows are stored and managed for average calculation. The average MACD high and low values are then used to determine potential trading zones.
When the MACD crosses over its average high, a 'High Box' (representing a potential breakout zone) is plotted from the recent high price to the candle top.
Conversely, when the MACD crosses under its average low, a 'Low Box' (indicating a potential reversal zone) is plotted from the recent low price to the candle base.
As price progresses, the boxes can either extend (if price stays within the zone) or close if a breakout happens.
For those who prefer a tabular view, an optional table displays the average MACD high and low, enhancing the on-chart data representation.
Use Cases:
Traders can use this indicator as an additional tool to spot potential breakout or reversal areas based on the MACD's behavior against its historical average. The visual representation in the form of boxes can assist in making better trading decisions by offering a clear picture of potential supply and demand zones.
Note: As with all trading indicators, it's advisable to use this tool in conjunction with other technical analysis methods or indicators for more informed decision-making.
Logarithmic VolatilityIntroducing the Logarithmic Volatility Indicator , an innovative trading indicator designed especially for trading in low volatility markets. This powerful indicator is aimed at traders of all levels, from beginners to experts, and is based on fundamental concepts of mathematics and statistics applied to the financial market. Its main objective is to provide you with a better understanding of price movements and help you make more accurate investment decisions, especially in low volatility environments.
The purpose of this indicator is to find a volatility estimator that depends on the difference between High and Low, taking into account that this measure is directly proportional to volatility. A first result was obtained by Parkinson (1980) which was later improved by Garman and Klass (1980), who improved the estimator by obtaining one of minimum variance. It is the simplified version (and recommended by them) of the Garman and Klass estimator that is used to calculate the daily volatility of the asset.
The Logarithmic Volatility Indicator is a unique smoothing indicator that uses logarithms and volatility calculation of the opening, high, low and closing prices. It combines these elements to obtain an accurate representation of market volatility in situations where volatility is low.
Features
This indicator has several outstanding features designed to enhance your trading analysis in low volatility environments:
• Intraday Volatility Calculation: This innovative feature allows you to view market volatility levels in real time, providing a clear view of market fluctuations even when volatility is low.
• EMA (Exponential Moving Average) Multi Length: The indicator incorporates three different EMA lengths (Fast, Medium and Slow). This gives you a deeper and more detailed analysis of market volatility, allowing you to detect subtle changes in volatility and make more accurate predictions.
• Visual color change: The indicator uses a color change between green and red to facilitate quick interpretation of the market. Green indicates a decrease in volatility, while red indicates an increase in volatility. This feature helps you quickly identify changes in market dynamics even in periods of low volatility.
• Histogram display: In addition to the colors, the indicator can also be displayed as a histogram. This intuitive representation allows you to visually observe changes in volatility over time and detect emerging patterns or trends in markets with low volatility.
Settings
The Logarithmic Volatility Indicator allows you to customize various settings to suit your specific trading needs:
• Slow EMA length: you can select the length of the slow exponential moving average according to your preferences and trading strategies.
• Fast EMA length: Similarly, you can choose the length of the fast exponential moving average to suit your trading style.
• Average EMA length: In addition to the two EMA lengths above, this indicator offers a third EMA length for even more detailed analysis. This additional feature is especially useful when trading in markets with low volatility, as it allows you to capture subtle changes in market dynamics.
Trading
The Logarithmic Volatility Indicator is designed not only to provide you with essential information about market volatility, but also to give you clear indications on when to trade. Here's how you can use the indicator's colors to guide your trading decisions:
- Long Trading: When the fast EMA has a smaller value than the slow EMA, the indicator will change to green. This is a signal to enter a long trade. That is, you can consider buying at this point, as an increase in price is anticipated due to decreasing volatility. With volatility declining, there is a greater likelihood that the price will continue in the current direction rather than fluctuate erratically.
- b]Short Trading: On the other hand, when the fast EMA has a higher value than the slow EMA, the indicator will turn red. This is a signal to enter a short trade. In other words, you may consider selling at this point, as a decline in price is anticipated due to rising volatility. With volatility on the rise, there is a greater risk of steeper price fluctuations.
It is important to remember that, as with any indicator, the Logarithmic Volatility Indicator does not guarantee 100% success. You should always use this indicator in combination with other analytical tools and good risk management. This tool provides you with an overview of market volatility and can help you identify trading opportunities in low volatility markets, but the final decision on when and how to trade should always be based on your own analysis and judgment.
In conclusion, the Logarithmic Volatility Indicator is an essential trading tool that every trader should have in their arsenal, especially when facing low volatility markets. With its accurate volatility calculation and easy-to-understand visualization, it will help you improve your trading decisions and maximize your profits even in situations where price movements are less pronounced. Try it today and take advantage of its efficiency in low volatility environments!
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Presentamos el Indicador de Volatilidad Logarítmica , un innovador indicador de trading diseñado especialmente para operar en mercados con baja volatilidad. Este poderoso indicador está dirigido a traders de todos los niveles, desde principiantes hasta expertos, y se basa en conceptos fundamentales de matemáticas y estadísticas aplicadas al mercado financiero. Su objetivo principal es proporcionarte una mejor comprensión de los movimientos de precios y ayudarte a tomar decisiones de inversión más precisas, especialmente en entornos de baja volatilidad.
Con este indicador se pretende encontrar un estimador de la volatilidad que dependa de la diferencia entre el High y el Low, teniendo en cuenta que esta medida es directamente proporcional a la volatilidad. Un primer resultado fue obtenido por Parkinson (1980) que posteriormente fue mejorado por Garman y Klass (1980), que mejoraron el estimador obteniendo uno de varianza mínima. Es la versión simplificada (y recomendada por ellos mismos) del estimador de Garman y Klass la que se utiliza para calcular la volatilidad diaria del activo.
El Indicador de Volatilidad Logarítmica es un indicador de suavizado único que utiliza logaritmos y el cálculo de la volatilidad de los precios de apertura, máximo, mínimo y cierre. Combina estos elementos para obtener una representación precisa de la volatilidad del mercado en situaciones donde la volatilidad es baja.
Características
Este indicador cuenta con varias características sobresalientes diseñadas para mejorar tu análisis de trading en entornos de baja volatilidad:
• Cálculo de la volatilidad intradía: Esta función innovadora te permite ver los niveles de volatilidad del mercado en tiempo real, lo que brinda una visión clara de las fluctuaciones del mercado incluso cuando la volatilidad es baja.
• EMA (Exponential Moving Average) Multi Longitud: El indicador incorpora tres longitudes diferentes de EMA (Rápida, Media y Lenta). Esto te proporciona un análisis más profundo y detallado de la volatilidad del mercado, permitiéndote detectar cambios sutiles en la volatilidad y realizar predicciones más precisas.
• Cambio de color visual: El indicador utiliza un cambio de color entre verde y rojo para facilitar la interpretación rápida del mercado. El verde indica una disminución de la volatilidad, mientras que el rojo indica un aumento de la volatilidad. Esta característica te ayuda a identificar rápidamente cambios en la dinámica del mercado incluso en períodos de baja volatilidad.
• Visualización Histograma: Además de los colores, el indicador también se puede visualizar como un histograma. Esta representación intuitiva te permite observar de manera visual los cambios en la volatilidad a lo largo del tiempo y detectar patrones o tendencias emergentes en mercados con baja volatilidad.
Ajustes
El Indicador de Volatilidad Logarítmica te permite personalizar varios ajustes para adaptarlos a tus necesidades de trading específicas:
• Longitud de EMA lenta: Puedes seleccionar la longitud de la media móvil exponencial lenta según tus preferencias y estrategias de trading.
• Longitud de EMA rápida: De manera similar, puedes elegir la longitud de la media móvil exponencial rápida para ajustarla a tu estilo de trading.
• Longitud de EMA media: Además de las dos longitudes de EMA anteriores, este indicador ofrece una tercera longitud de EMA para un análisis aún más detallado. Esta característica adicional es especialmente útil cuando operas en mercados con baja volatilidad, ya que te permite capturar cambios sutiles en la dinámica del mercado.
Operativa
El Indicador de Volatilidad Logarítmica está diseñado no solo para brindarte información esencial sobre la volatilidad del mercado, sino también para ofrecerte indicaciones claras sobre cuándo operar. Aquí te explicamos cómo puedes utilizar los colores del indicador para guiar tus decisiones de trading:
• Operativa en Largo: Cuando la EMA rápida tiene un valor más pequeño que la EMA lenta, el indicador cambiará a color verde. Esta es una señal para entrar en una operación en largo. Es decir, puedes considerar comprar en este punto, ya que se anticipa un aumento en el precio debido a la disminución de la volatilidad. Con la volatilidad en descenso, existe una mayor probabilidad de que el precio continúe en la dirección actual en lugar de fluctuar erráticamente.
• Operativa en Corto: Por otro lado, cuando la EMA rápida tiene un valor mayor que la EMA lenta, el indicador se tornará rojo. Esta es una señal para entrar en una operación en corto. En otras palabras, puedes considerar vender en este punto, ya que se anticipa una disminución en el precio debido al aumento de la volatilidad. Con la volatilidad en ascenso, existe un mayor riesgo de fluctuaciones de precio más pronunciadas.
Es importante recordar que, como con cualquier indicador, el Indicador de Volatilidad Logarítmica no garantiza un éxito del 100%. Siempre debes usar este indicador en combinación con otras herramientas de análisis y una buena gestión de riesgos. Esta herramienta te proporciona una visión general de la volatilidad del mercado y puede ayudarte a identificar oportunidades de trading en mercados con baja volatilidad, pero la decisión final de cuándo y cómo operar siempre deberá basarse en tu propio análisis y juicio.
En conclusión, el Indicador de Volatilidad Logarítmica es una herramienta de trading esencial que todo trader debe tener en su arsenal, especialmente cuando se enfrenta a mercados con baja volatilidad. Con su cálculo preciso de la volatilidad y su visualización fácil de entender, te ayudará a mejorar tus decisiones de trading y a maximizar tus ganancias incluso en situaciones donde los movimientos de precios son menos pronunciados. ¡Pruébalo hoy mismo y aprovecha su eficiencia en entornos de baja volatilidad!
LNL Scalper ArrowsLNL Scalper Arrows
The indicator consist of various different types of candlestick patterns that are truly time tested by multiple veteran traders. These arrows are a combination of short-term scalping strategies taught by Linda Raschke & a trader that goes by name Quant Trade Edge. These strategies/patterns occur regularly within the markets. They offer high probability quick moves during the trending days. These four patterns are based on pure price action, no oscillators, no trend, no momentum indicators involved. Trend (ema) is there just as a simple trend gauge.
LNL Scalper Arrows were designed specifically for intra-day trading. Mostly useful for the futures but also stocks as well. These arrows can work anywhere between the fast-moving 512 or 1600 tick charts to a 1min, 2min and up to 5min or 10min charts.
Trend Gauge (Exponential Moving Average)
Nothing fancy just a classic EMA that can guide the direction of the short-term trend. I have added a custom coloring of the EMA that is based on a simple RSI filter. That should help to visualize the non-directional moments within the trend. Although the length is adjustable, for scalping it is better to focus on smaller periods such as 9, 13 or 20 or 34 but anything above 50 loses its purpose as a short-term trend gauge. Again, this is a scalping tool not a trend tool, you are not going to get rid of the fakeouts by increasing the period of the trend.
Tail Arrows (Eat the Tail Pattern)
Tail is a candlestick that is either a price rejection spike, or a flag continuation pattern on a lower time frame. A failed action. It is basically a candle with much bigger wick (shadow) of the candle than the actual body. Such candles are usually telling us about strong participation from the other side of the market. Eat the tail pattern occurs whenever the low of the Tail candle is immediately broken on a following candle "the tail is eaten alive". Such a breaks occurs in a most aggressive types of markets with a strong momentum. DO NOT try to trade this in a low volume or a ranging market. Tail Arrows are the most aggressive arrows & should be only used on the highest volume or a parabolic momentum markets.
Scalp Arrows (Scallop Pattern)
Known as Scallops or minor lows or highs, these patterns are the most common within the all scalper arrows. They occur regularly on 1min & 5min charts - basically everyday. Scallops provide the best possible risk to reward entry within the trend without the need of any indicators or oscillators. The Scallop Up 3 bar pattern consist of a high that is lower that the previous high but also low that is lower than the previous low. Scallop Up or a minor low triggers when the last high is broken, creating a three bar mountain or a peak within the 5 bar span.
Hoagie Arrows (Hoagie Pattern)
Hoagies occur way less often than any other scalping patterns. Hoagies represent two (or more) inside candles within the shadow of a first candle. Such a formation is creating a small compression or a range that sooner or later breaks out. The hoagie is triggered whenever the high or low of the shadow (first) candle is broken. The great thing about the hoagies is that they can work either way despite the trend direction. Although this indicator is coded for the 2 bar hoagies, there are no limitations on how much inside bars can hoagie include.
Umbrella Arrows (Umbrella Pattern)
Another really awesome 3 bar pattern that is really fun to trade. Umbrella occurs when the candle before the previous candle is a pin bar or a tail bar and the body of the previous candle is within the shadow or a wick of the candle before. The umbrella is triggered once the high or low of the previous bar is broken. Umbrellas are more frequent than Hoagies but occur much less than the Scallops.
Outside Bar Wedges (Outside Bar Pattern)
Pretty much self-explanatory candlestick pattern. Outside Bar is basically any bar that peaks outside of the both ends of the previous candle. So the range of the candle is higher & it looked beyond the high and beyond the low of the previous candle. These candles are signalizing the potenial momentum change. Ouside Bars usually occur at the tops or bottoms of the moves. I decided to add them because they can serve as a great addition to these scalping patterns.
Signal vs. SignalBreak Mode
The trigger can be viewed in two different ways:
1. Signal: Plots the trigger before the trigger bar, basically right when the pattern is formed but NOT YET triggered. The signal is triggered once the next candle break the high or low of the current candle.
2. SignalBrake: Plots the trigger after the break of the high or low of the actual pattern. It is basically a candle after the signal candle. (Signal is better for trading because it gives you time to prepare for the actual break of the high or low = the actual signal. SignalBrake is great for looking back in history only for the patterns that actually traded).
Pin Bar BTW Ratio
Pin Bar (Body-To-Wick) Ratio represents the size of the body of a pin bar candle for Eat the Tail and Umbrella patterns. Pin Bar BTW Ratio measures the ratio between the wick & the body of the candle. Ref. interval is 2.0 - 5.0 (ideal pin bar is 2.0 - 3.0 = the wick or a shadow is 2x - 3x bigger than the body of the candle)
ATR Stop & Target Labels
I also created three simple labels (tables) that can show you the ideal target & stop as well as the current ATR. Since LNL Scalper Arrows consist of high probability scalping patterns, a good rule of thumb to follow is to use a half of the current ATR as a target and a current ATR as a stop (or two times the target). So if the current 7 period ATR is 30 the target would be 15 pts. and a stop around 30 pts. With such a risk management you should aim for a win rate 70% or higher. Obviously you can adjust the risk management in the settings to your personal preference.
Low Range vs. High Range Markets
There are two major downsides with the Scalper Arrows:
1. You need volume and a volatility. These patterns really do struggle in ranging "boring" sideways action. It is absolutely crucial to recognize the current market environment and really stay cautions and (or completely out) in case the chop continues. Adding something like DMI can help you recognize the potential flat markets.
2. Not only do you need volume & momentum, you also need a decent range. This indicator works better on a rangy market such as NQ futures or YM. But are much tougher to trade on lower range markets such as some stocks or ZB futures or basically any other lower range market.
Hope it helps.
Traffic Lights [theEccentricTrader]█ OVERVIEW
This indicator automatically draws higher timeframe support and resistance levels using current peak and trough prices. These prices are also displayed in a table which can be repositioned and resized at the user's discretion.
█ 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 (Basic)
• 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.
Peak and Trough Prices (Advanced)
• The advanced 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 highest preceding green candle high price, depending on which is higher.
• The advanced 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 lowest preceding red candle low price, 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.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Support and Resistance
• Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further.
• Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further.
Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down.
It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction.
Major Traffic Lights
Major traffic light levels are determined using monthly (red solid lines), weekly (orange solid lines) and daily (green solid lines) peak and trough prices.
Minor Traffic Lights
Minor traffic light levels are determined using 4H (red dashed lines), 1H (orange dashed lines) and 15-minute (green dashed lines) peak and trough prices.
█ FEATURES
Inputs
• Advanced Peak and Trough Price Logic
• Show Minor
• Show Major
• Extend Line Type
• Show Table
• Position
• Text Size
If the current timeframe is higher than any of the traffic light timeframes the relevant lines and table cells will automatically be hidden. As can be seen in Figure 1. below, the intraday lines and table cells will only appear if the user scales down to a low enough timeframe.
Figure 1.
█ LIMITATIONS
The green and red candle calculations are based solely 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. 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. Alternatively, you can replace the scenarios with your own logic to account for the gap anomalies, if you are feeling up to the challenge.
It is also worth mentioning that the minor levels will not be displayed if the user selects a custom timeframe between 31 and 44 minutes, and between 46 and 59. All other timeframes should work as intended.
Fibonacci Ratios HTF [theEccentricTrader]█ OVERVIEW
This indicator automatically draws higher timeframe Fibonacci levels from current peak to current trough or current trough to current peak, depending on where the current wave cycle ends. In the example above I have set the higher timeframe resolution to 1-month and applied it to a daily chart.
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a high price equal to or above the price it opened.
• A red candle is one that closes with a low 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 (Basic)
• 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.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Support and Resistance
• Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further.
• Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further.
Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down.
It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven.
Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Although there is some contention over which popular levels are and are not actually Fibonacci ratios, such as 50% and 100%, in this script I have based my retracement level calculations on the ratios of 23.6%, 38.2%, 50%, 61.8%, 78.6% and 100%. And my extension level calculations on the ratios of 161.8%, 261.8%, 361.8%, 423.6% and 461.8%.
█ FEATURES
Inputs
• HTF Resolution
• Show Fibonacci Extensions
• 00.0% Line Color
• 23.6% Line Color
• 38.2% Line Color
• 50.0% Line Color
• 61.8% Line Color
• 78.6% Line Color
• 100.0% Line Color
• 161.8% Line Color
• 261.8% Line Color
• 361.8% Line Color
• 423.6% Line Color
• 461.8% Line Color
• Extend Line Type
• Show Labels
• Label Colors
█ 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.
Similarly, if the current timeframe is not a factor of the higher timeframe there will be occasions when the left hand offset is out by a couple of bars. This is because the calculations are ultimately based on how many lower timeframe bars there are inside a sequence of higher timeframe bars. The indicator will also behave unexpectedly if the higher timeframe resolution is lower than the current timeframe, but that should be expected.
If the lines do not draw or you see a study error saying that the script references too many candles in history, this is most likely because the higher timeframe anchor point is not present on the current timeframe. This problem usually occurs when referencing a higher timeframe, such as the 1-month, from a much lower timeframe, such as the 1-minute. How far you can lookback for higher timeframe anchor points on the current timeframe will also be limited by your Trading View subscription plan. Premium users get 20,000 candles worth of data, pro+ and pro users get 10,000, and basic users get 5,000.
Fibonacci Ratios [theEccentricTrader]█ OVERVIEW
This indicator automatically draws Fibonacci levels from current peak to current trough or current trough to current peak, depending on where the current wave cycle ends.
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a high price equal to or above the price it opened.
• A red candle is one that closes with a low 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 (Basic)
• 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.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Support and Resistance
• Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further.
• Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further.
Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down.
It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven.
Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Although there is some contention over which popular levels are and are not actually Fibonacci ratios, such as 50% and 100%, in this script I have based my retracement level calculations on the ratios of 23.6%, 38.2%, 50%, 61.8%, 78.6% and 100%. And my extension level calculations on the ratios of 161.8%, 261.8%, 361.8%, 423.6% and 461.8%.
█ FEATURES
Inputs
• Show Fibonacci Extensions
• 00.0% Line Color
• 23.6% Line Color
• 38.2% Line Color
• 50.0% Line Color
• 61.8% Line Color
• 78.6% Line Color
• 100.0% Line Color
• 161.8% Line Color
• 261.8% Line Color
• 361.8% Line Color
• 423.6% Line Color
• 461.8% Line Color
• Extend Line Type
• Show Labels
• Label Colors
█ 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.
NSDT Lattice WebThis script creates a "web" by connecting different points of candles. All configurable by the trader.
There are 4 basic parts to a candle:
Open, High, Low, and Close
With this script, you can connect any point of one candle in the past to any point of another current candle.
For example:
High to High, High to Low, High to Open, High to close
Low to High, Low to Low, Low to Open, Low to Close
Open to High, Open to Low, Open to Open, Open to Close
Close to High, Close to Low, Close to Open, Close to Close
The script will change the line colors based on whether the current plot is higher or lower than the previous plot.
Try out different connection points to see what works for you. Connecting High to High and Low to Low, might easily show you when the market is making higher highs or lower lows, indicating a potential movement.
Run it on replay at a higher speed and see how it may potentially help identify area of congestion or trends.
coates moving averages (cma)This indicator uses three moving averages:
2 period low simple ma
2 period high simple ma
9 period least squares ma
The trend is determined by the angle of the moving averages, current close relative the the 9 least squares ma (lsm) and the current close relative to the prior two periods high and low.
When there are consecutive closes inside the prior two candles high and low then a range is signaled:
In ranges the buy zone is between the lowest low and the lowest close of the current range. The sell zone is between the highest high and the highest close. The zones are adjusted as long as the new close is within the prior two candles range:
When price closes above the 2 high ma and the 9 lsm then a bull trend is signaled if all moving averages are angled upward (as seen at #4 in the chart above and #1 the chart below ). If the 9 lsm and / or the 2 low ma continue to angle downward, following a close above the 2 high ma and 9 lsm, then a prolonged range or reversal is expected (#2 in the chart below):
During a bull trend the buy zone is between the 2 low ma and the 9 lsm. The profit target is the 2 high ma:
During dip buying opportunities price should resist closing below the 9 lsm. If there is one close below the 9 lsm then it is a canary in the coalmine that tells us to proceed with caution. This will often signal a range, based on the conditions outlined above. To avoid a prolonged range, or reversal, price needs to immediately react in the direction of the prevailing trend:
If the moving averages are angled down and the most recent close is below the 2 low ma and 9 lsm then trend is fully bearish:
During a bear trend the short zone is between the 2 high ma and 9 lsm. The profit target is the 2 low ma:
When the 2 high ma angles down and the 2 low ma angles up while price closes inside both mas then it indicates a cma squeeze:
Volatility is expected in the direction of the breakout following the squeeze. In this situation traps / shakeouts are common. If there is a wick outside the cma, with a close inside, then it indicates a trap / shakeout. If there is a close outside the 2 high / low ma then it signals a breakout.
A trend is considered balanced when the 9 lsm is roughly equidistant from the 2 low and 2 high mas. If the 9 lsm crosses the 2 high or 2 low ma then it signals exhaustion / imbalance.
For a stop loss I use the prior three periods low, for bull trends, and the prior three periods high for bear trends. I would expect other reliable stops, such as the parabolic sar or bill williams fractal, to be effective as well. The default moving averages should be very effective on all timeframes and assets classes, however this indicator was developed for bitcoin with a focus on higher timeframes such as the 4h, daily and weekly.
As with any other technical indicator there will be bad signals. Proceed with caution and never risk more than you are willing to lose.
