MTF Commodity Oddity Index (CCI+)MTF Commodity Oddity Index (CCI+)
This chart overlay indicator is based upon the Commodity Channel Index (CCI) and can signal multiple triple-timeframe CCI overbought and oversold confluences directly onto your chart, intended for use as a confluence either for reversal trade entries, or potential trade exits, indicating where price may be probable to reverse.
Features include:
- Primary set of fully configurable triple-timeframe overbought and oversold signals, indicating where 3 selected timeframes are all overbought or all oversold at the same time. Enabled by default.
- Secondary set of fully configurable triple-timeframe overbought and oversold signals, indicating where 3 selected timeframes are all overbought or all oversold at the same time. Enabled by default.
- Optional drawing of background colours and/or ribbon seen at bottom of the chart image.
- The default primary MTF #1 timeframes are set to 1 minute, 5 minute and 15 minute. These are highly suitable for low timeframe scalpers trading on < 5m charts, and can often pin point price reversals.
- The default Secondary MTF #2 timeframes are set to 15 minute, 30 minute and 120 minute. These are suitable for both low timeframe scalpers and considerably higher timeframe traders.
- Independent alerts for MTF #1 and MTF #2 triple-timeframe confluences, including options for alerting MTF overbought and MTF oversold individually, as well as an option for alerting either overbought or oversold in a single combined alert.
- Also includes standard configurable CCI options, including CC length and source type.
Note: The features listed above are accurate at the time of publishing but maybe updated or added to in future.
A similar MTF CCI indicator is also available as a panel indicator here .
This indicator is based upon the original MTF Fantastic Stochastic (FS+) available here .
What is the Commodity Channel Index (CCI)?
Investopedia has described the popular oscillator as follows:
“The Commodity Channel Index (CCI) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold.
Developed by Donald Lambert, this technical indicator assesses price trend direction and strength, allowing traders to determine if they want to enter or exit a trade, refrain from taking a trade, or add to an existing position. In this way, the indicator can be used to provide trade signals when it acts in a certain way.”
You can read more about the CCI , its use cases and calculations here .
How do traders use overbought and oversold levels in their trading?
The oversold level, that is traditionally when the CCI is above the 100 level is typically interpreted as being 'overbought', and below the -100 level is typically considered 'oversold'. Traders will often use the CCI at an overbought level as a confluence for entry into a short position, and the CCI at an oversold level as a confluence for an entry into a long position. These levels do not mean that price will necessarily reverse at those levels in a reliable way, however. This is why this version of the CCI employs the triple timeframe overbought and oversold confluence, in an attempt to add a more confluence and reliability to this usage of the CCI . While traditionally, the overbought and oversold levels are below -100 for oversold, and above 100 for overbought, the default threshold settings of this indicator have been increased to provide fewer, stronger signals, especially suited to the low timeframes and highly volatile assets.
Buscar en scripts para "reversal"
CFB-Adaptive Trend Cipher Candles [Loxx]CFB-Adaptive Trend Cipher Candles is a candle coloring indicator that shows both trend and trend exhaustion using Composite Fractal Behavior price trend analysis. To do this, we first calculate the dynamic period outputs from the CFB algorithm and then we injection those period inputs into a correlation function that correlates price input price to the candle index. The closer the correlation is to 1, the lighter the green color until the color turns yellow, sometimes, indicating upward price exhaustion. The closer the correlation is to -1, the lighter the red color until it reaches Fuchsia color indicating downward price exhaustion. Green means uptrend, red means downtrend, yellow means reversal from uptrend to downtrend, fuchsia means reversal from downtrend to uptrend.
What is Composite Fractal Behavior ( CFB )?
All around you mechanisms adjust themselves to their environment. From simple thermostats that react to air temperature to computer chips in modern cars that respond to changes in engine temperature, r.p.m.'s, torque, and throttle position. It was only a matter of time before fast desktop computers applied the mathematics of self-adjustment to systems that trade the financial markets.
Unlike basic systems with fixed formulas, an adaptive system adjusts its own equations. For example, start with a basic channel breakout system that uses the highest closing price of the last N bars as a threshold for detecting breakouts on the up side. An adaptive and improved version of this system would adjust N according to market conditions, such as momentum, price volatility or acceleration.
Since many systems are based directly or indirectly on cycles, another useful measure of market condition is the periodic length of a price chart's dominant cycle, (DC), that cycle with the greatest influence on price action.
The utility of this new DC measure was noted by author Murray Ruggiero in the January '96 issue of Futures Magazine. In it. Mr. Ruggiero used it to adaptive adjust the value of N in a channel breakout system. He then simulated trading 15 years of D-Mark futures in order to compare its performance to a similar system that had a fixed optimal value of N. The adaptive version produced 20% more profit!
This DC index utilized the popular MESA algorithm (a formulation by John Ehlers adapted from Burg's maximum entropy algorithm, MEM). Unfortunately, the DC approach is problematic when the market has no real dominant cycle momentum, because the mathematics will produce a value whether or not one actually exists! Therefore, we developed a proprietary indicator that does not presuppose the presence of market cycles. It's called CFB (Composite Fractal Behavior) and it works well whether or not the market is cyclic.
CFB examines price action for a particular fractal pattern, categorizes them by size, and then outputs a composite fractal size index. This index is smooth, timely and accurate
Essentially, CFB reveals the length of the market's trending action time frame. Long trending activity produces a large CFB index and short choppy action produces a small index value. Investors have found many applications for CFB which involve scaling other existing technical indicators adaptively, on a bar-to-bar basis.
Included
Loxx's Expanded Source Types
Related indicators:
Adaptive Trend Cipher loxx]
Dynamic Zones Polychromatic Momentum Candles
RSI Precision Trend Candles
Kase Peak Oscillator w/ Divergences [Loxx]Kase Peak Oscillator is unique among first derivative or "rate-of-change" indicators in that it statistically evaluates over fifty trend lengths and automatically adapts to both cycle length and volatility. In addition, it replaces the crude linear mathematics of old with logarithmic and exponential models that better reflect the true nature of the market. Kase Peak Oscillator is unique in that it can be applied across multiple time frames and different commodities.
As a hybrid indicator, the Peak Oscillator also generates a trend signal via the crossing of the histogram through the zero line. In addition, the red/green histogram line indicates when the oscillator has reached an extreme condition. When the oscillator reaches this peak and then turns, it means that most of the time the market will turn either at the present extreme, or (more likely) at the following extreme.
This is both a reversal and breakout/breakdown indicator. Crosses above/below zero line can be used for breakouts/breakdowns, while the thick green/red bars can be used to detect reversals
The indicator consists of three indicators:
The PeakOscillator itself is rendered as a gray histogram.
Max is a red/green solid line within the histogram signifying a market extreme.
Yellow line is max peak value of two (by default, you can change this with the deviations input settings) standard deviations of the Peak Oscillator value
White line is the min peak value of two (by default, you can change this with the deviations input settings) standard deviations of the PeakOscillator value
The PeakOscillator is used two ways:
Divergence: Kase Peak Oscillator may be used to generate traditional divergence signals. The difference between it and traditional divergence indicators lies in its accuracy.
PeakOut: The second use is to look for a Peak Out. A Peak Out occurs when the histogram breaks beyond the PeakOut line and then pulls back. A Peak Out through the maximum line will be displayed magenta. A Peak Out, which only extends through the Peak Min line is called a local Peak Out, and is less significant than a normal Peak Out signal. These local Peak Outs are to be relied upon more heavily during sideways or corrective markets. Peak Outs may be based on either the maximum line or the minimum line. Maximum Peak Outs, however, are rarer and thus more significant than minimum Peak Outs. The magnitude of the price move may be greater following the maximum Peak Out, but the likelihood of the break in trend is essentially the same. Thus, our research indicates that we should react equally to a Peak Out in a trendy market and a Peak Min in a choppy or corrective market.
Included:
Bar coloring
Alerts
Elder Force Index With ATR Channels [loxx]Elder Force Index With ATR Channels, adaptive from original script by Dr. Alexander Elder
What it does
-EFI is used to sport reversals mainly on the weekly time frame
-When EFI spikes over 3 x ATR calculated on the signal line, price is said to have exhausted and you can start looking for reversals
Features
-Change all inputs
-Truncate EFI at 4 x ATR so as to not squish the indicator
-Open source, use code as you wish. If you use this code, shoot me a line and tell me how you're using it
%R Trend Exhaustion [upslidedown]I love Williams %R! This indicator mixes two %R periods... a standard %R with a longer period %R. The longer period of 112 has interesting results for trend following strategies in the crypto market through backtesting.
Alone these are fairly ordinary but together they provide a very interesting trend exhaustion/reversal system while filtering out some noise. I have highlighted key areas of interest with filled boxes. An "area of interest" is when there is confluence between the short and long period %R values along with being overbought or oversold. Once there is a break in the overbought or oversold trend, an arrow will print.
This is one of my odder ideas that appears to have some merit and detects interesting tops or bottoms (or confirms a trend reversal) so I'm publicly publishing for the community to find. If you find this useful please reach out and let me know how you use it as it's fairly unique... and thus different than anything I've ever seen or used.
Elder's Force Index Color BarBased on the Elder's Force Index (EFI) , +/- of the EFI and its ema is used to describe the rise, fall or possible reversal of the market, and finally shown by bar color.
The green bar represents a strong bull and the red bar represents a strong bear;
The blue bar indicates that the downtrend is exhausted and may rise. Likewise the yellow bar.
Of course, it is difficult to buy the bottom and sell the top at any time. This indicator needs to be judged together with the pattern or other indicators that predict reversals in order to increase the win rate.
Happy Trading.
根据Elder's Force Index修改而成，取消了幅图指标，仅用bar color来表现上涨，下跌和转折。
绿色k线代表上涨动能充足，红色k线表示下跌动能充足；
蓝色k线表示下跌力竭，可能会上涨；
黄色k线表示上涨力竭，可能会下跌。
当然，任何时候抄底摸顶都是困难的，该指标需要和形态或者其他预测反转的指标一起判断才能增加成功率。
祝交易愉快。
緑は上昇トレンドで、赤は下落トレンドです；
青は下落が尽きて上昇する可能性があることを示すことで、黄色は上昇が終わり、下落の可能性があることを示しています。
成功率を高めるためには、パターンや反転を予測する他の指標と合わせて判断する必要があります。
Happy Trading。
Volume Pressure AnalysisVolume Pressure Analysis is a new concept I have been working on designed to show the effort required to move price. An ideal tool for confirming trends or locating reversals early. This indicator can highlight whale action and market manipulation. It calculates volume vs volatility and displays the results as a meter:
Above 0 shows how easy price action is traveling, the bigger these bars the less volume and effort is required to push price. These are indicated with a teal or red arrows and can confirm the beginning or continuation of a trend. This is the natural direction the chart wants to travel at that time.
Below 0 shows how hard price is to move. The bigger these bars the more volume and effort is required to push price. When whales and market makers push price against its will these bars will get bigger.
Yellow arrows signal pressure in that direction and excessive amounts of volume is required to move price. These signals can lead to reversal/ pivot points as price action struggles to continue its trend. These signals can be turned on in settings or use the overlay version of this script to display signals on chart. This is a very powerful tool when used with relative volume.
Institutional OrderBlock Pressure█ OVERVIEW
OrderBlocks are areas where Banks take a Short or Long position. So they create a movement that they would like to hide from us, but luckily for us they cannot. Take the example of Banks opening Short position for x reason. The Trend is already Bearish. The Price will fall and then make a Reversal
(most often to the price where they opened their positions) and it is at this precise moment that they will again resume a Short position twice as
large because for the moment, following this example it is not in their interest that the Price exceeds a certain Price since they are Seller.
As a result they create a solid Resistance (the strongest it is). There are several ways to interpret this logic, we can try to follow the movement of Banks
or on the contrary take advantage of the recovery of the course. Note that not having level 2 and access to the order book from TradingView we can only
make a rough estimate of the "OrderBlocks" through VPOC.
█ HOW TO INTERPRET?
• The Labels displayed by "Red Arrow" and "Green Arrow" represent supposed Bearish or Bullish OrderBlock. Note that you should not in any way interpret these "Arrows" as Signals to Buy or Sell for the reasons mentioned above.
• The OB Line works according to detected OrderBlock Candle. These lines indicate the potential recovery area. (The highlighted lines and candles are white by default).
• It is better to use this indicator on Higher TimeFrame like 2H or 4H.
• You can change the Volume Ratio (here VPOC) which is 89 by default.
• There is a Customization section that allows you to change the colors of the Lines and Candles from White to Black depending on your background color (Light or Dark).
• YES the indicator is Repainting and YES you can have False Alerts since Labels appear in intra-bar!
█ ALERTS
• In fact we don't really need Alerts for the logic of this indicator except maybe to get the Price of the last OB Detected and to keep this price in your Alert History and may use it later. Some improvements will come in future with updates and we have already planned to add Alerts when a "Line Cross" gone occur.
If you notice any bugs or if you have any suggestions, don't be hateful gangs ;)
Happy trading everyone and remember, risk management is the most important!
Break/Reversal/Touch [Intromoto]This script shows the engulfing breaks, touches and potential reversals for when prices arrives at certain time frame closes.
On publishing it shows the crossovers of the 6 hour, Daily, Weekly, and Monthly time frames.
The candle main signals are contingent on crossing over the closing level, and engulfing the previous candle. Secondary signals occur when the candle low or high touch the closing levels, in the directional color, i.e. you'll get a bearish touch signal if the candle high touches the level, and it's a red candle. Reversals occur when the subsequent candle breaks a closing level, but the current candle engulfs the previous candle in the opposing direction.
If a candles low or high hits a daily, weekly, or monthly close level it also will plot a "D/W/M Touch" in the according direction.
Thanks
Peak Reversal v2This is a brand new version of my Peak Reversal indicator. As with the older version, the idea behind this indicator is simple: identify potential price reversal areas, and identifying markets which are trending. In this new version I focused on improving on the old concept, but introduced a bunch of features heavily inspired by Adam Grimes' ideas from The Art and Science of Trading. (I also blatantly stole the way he colors candles outside of the bands. Sorry.)
As you can see below this indicator gives traders a plethora of tools to judge whether a market is trending, and might be mean reverting soon.
Follow me, join my group, like the script. You know the drill.
Basic functions:
You have a triplet of Keltner (ATR-based) bands in Peak Reversal. They are defined by a multiplier and an EMA, which is referred to as "the mean". There's a tight, normal, and an extreme band. The multiplier defines how far apart your bands are. By default the indicator uses 1.125, 2.25, and 3.375. The tight band is off by default, but you can turn it on in the options. The mean is also off by default. This is more a personal preference thing for me, because I happen to use a different indicator to show a couple of moving averages.
Band crosses:
Peak Reversal can indicate whenever price crosses one of the bands. This can help traders identify points where a mean reversal play could be an option. Triangles indicate these crosses. New in version 2 is the ability to choose which of the bands to use to show these crosses. If you are more of an aggressive trader, you might find it better to show tight band crosses. If you are looking for more extreme market conditions, then choose extreme. The default is "normal".
Free bars:
Indicating free bars is also a concept from the book. A "free bar" is one which stands "freely" above the bands, which means its low price is completely outside of the bands. It can be argued that a freely standing bar is an even more extreme mean deviation, than just a band cross. Traders can gain an additional advantage studying the markets this way. Free bars are not shown by default, when on, a star shape on the candles indicates free bars. Both band crosses and free bars can be shown at the same time, but there might be overlap.
Deviations:
Also based on a concept from The Art and Science of Trading, is an indication of price "deviations". You will notice that when a candle "touches" a band (high and close above band), its colored. The idea here is to show traders when a market is in motion, but also when a mean reversal might be coming next. To accomplish this, the more colors deviate, the darker the color is. The idea here is also simple, the more price deviates off the mean, the likelier it is to return to it. This uses three different shades to show these deviations. 1-2 is one shade, 3-4 another, and upwards of 5 there's only the darkest shade. I didn't make extensive studies, which color for how many candles would be appropriate to use, but I do believe it doesn't matter that much in usage. It's clear what traders gain from using this information: more deviation, the likelier a snapback becomes.
Advanced mode:
Last but not least, I decided to add an advanced mode for advanced traders. This does nothing more than flip all colors and shapes upside down. Everything that is red, becomes green. The idea is where some traders say "buy low, sell high" (standard mode), other traders might say "buy high, sell higher" (advanced mode). See for yourself, which one you like better.
The WWG Plan Indicator V2█ OVERALL
This indicator was specifically created for the Walsh Wealth Group.
In short it is a fusion of some of the most basic and widely used indicators to show overbought patterns and trend reversals.
Its best usage is with LTF scalping and agressive profit taking but can also be used to find HTF dips and buy-zones.
█ FEATURES
Buy Signal (Buy):
Printed only with all confirmations triggered
Small Buy Signal (B1 & B2)
Printed if some of the confirmations are triggered and can be treated as DCA entries or for further
confirmation with other indicators and basic TA.
Crayons (Color Bars):
Blue: RSI is oversold
Olive: RSI and Stoch RSI are oversold
Yellow: RSI, Stoch RSI are oversold and lower Bollinger Bands are crossed by Low
Orange: RSI, Stoch RSI and CCI are oversold
Trailing SL:
If activated in the config, a trailing SL can be displayed on the chart based on ATR.
█ SETTINGS
The underlying indicators used are RSI, Stoch RSI, Bollinger Bands, MACD and CCI.
All possible configs can be changed in the config settings.
█ GENERAL INFORMATION
Depending on the settings, the indicator performance will be highly affected.
This indicator is only displaying highly oversold areas and events of trend reversal it is not a *God*-Signal and will print false positives.
█ ALERTS
An alert for the main buy-signal is implemented and can be used via the TV alert functionality.
Trend Reversal Indicator (EMA of slopes)Good morning Traders
Inspirated by lukescream EMA-slope strategy, today I want to share with you this simple indicator whose possible use-case would be for detecting in advance possible trend reversals, specially on higher timeframes.
Once that you've chosen the desired source (RSI, EMA or Stochastic k or d), the indicator will calculate its "slope" approximating its first order derivative by the division between the last variation of the series and its last value.
You can see the slope as a white line by enabling the relative checkmark (it's disabled by default since it simply messes up the the graph)
Then, the slope itself becomes the source for two exponential moving averages: the fast one (in blue) has a period of 20 while the slow one (in red, it becomes similiar to a horizontal line actually) has a period of 500
Why the slope? Since all the sources mentioned before are directly or indirectly calculated on the price action, a more aggressiveness in the price movement would be translated into a more (positive/negative) steepness of those indicator (of course this effect would be far more evident if the indicators are calculated on low periods, but really low periods could compromise the consistency of the signals).
In this way, the slope would mirror the decisiveness of price movements and a comparison between two averages calculated from it (the first one based on more recent values, the second one that conisders also older values) could tell you in advance what direction the market is possibly about to take
The usage is simple: once that the fast moving average crosses upward the slow one, this could be a sign of potential trend reversal from bearish to bullish. On the contrary, if the fast EMA crosses downward the slow one, this could be a sign of potential trend reversal from bullish to bearish.
What I suggest you is to integrate this indicator with Exponential Moving Averages plotted on the price candles, in order to have a general bias for opening long or short positions, and with an oscillator as well such as the Stochastisc RSI in order to detect the overbought/oversold zones for opening/closing positions at the right moment.
Happy Trading!
KISS Strategy: SMA + EMA//Hello my fellow investors
//I am creating a simple non-cluttered strategy that uses 3(+1) simple means to determine: viability, entry, and exit
//1) Has a consistent trend been maintained for several days/weeks
//2) SH SMA crossover LG SMA = Bullish entry/LG SMA crossover SH SMA = Bearish entry
//3) Use the Slope factor & Weeks in Trend (WiT) to dertermine how strong of an entry signal you are comfortable with
//4) Exit position based on next SMA cross and trend reversal or stop loss%
//3+1) For added confidence in trend detection: Apply MACD check - buy--> MACD line above signal line and corssover below histogram \\ sell --> MACD line below signal line and crossover above histogram.
//*)This code also allows you to determine your desired backtesting date compliments of alanaster
The chart shown has:
Starting Capital: $10,000
Investment percent per trade: 1.5%
Stop Loss: 20%
Take Profit: 100%
MS ReversalsDisplay of a certain type of reversal bars. Reversal formations have to be considered in market context. Basically downward signals in the uptrend are ignored, unless there is an non-correlated inversion setup. Similarly, upside signals in downtrends are ignored until a bullish reversal setup occurs.
Bollinger Bands Deviation - yo_adriiiiaanBollinger Band Deviations
In theory price trades within 2 standard deviations 95% of the time. This is an attempt to capture that 5% that deviates from the bands.
Useful for taking profit or signaling a reversal.
Smart Envelope - Running Away From The TrendIntroduction
Envelopes indicators consist in displaying one upper and one lower extremity on the price chart. They are most of the time built by adding/subtracting a volatility estimator (rolling stdev, atr, range...etc) to a central tendency estimator (SMA, EMA, LSMA...etc) . Their interpretation is often subject to debate amongst technical analyst, some will use a support and resistance methodology, where price will start a downtrend once it cross the upper extremity, and a down trend once it cross the lower one. Others will prefer a breakout methodology, where price will reach higher highs once it cross the upper extremity, and lower lows when it cross the lower one. Because of price non stationarity its hard to select the best methodology, the support and resistance one will mostly work on ranging markets, while the breakout methodology mostly work on trending ones.
Therefore new methods where proposed, instead of using moving averages with a high lag, faster filters where used, such as the least squares moving average or zero lag exponential moving average, other band indicators where also created using adaptive filters, but improvements remain relatively low. The most difficult task would be to make extremities with the ability to return accurate support and resistances levels, and today i want to provide a new way to construct such extremities by using the recursive bands framework that allow extremely creative and efficient indicators.
The Main Idea
With classical bands indicators, the upper and lower extremity will still be correlated with the main trend, the problem behind such method is that we can't use a support and resistance methodology with trending markets, the fact that reversals exist tells us that our extremities will always be crossed by the main trend, here is an example :
Here the support is correlated with the main trend, in order for it to be accurate we must assume the trend will go on for ever, and will only detect higher lows, this is what we expect with the orange line, but we can see that a severe down trend totally destroy our plan.
In short we need to give some headroom to our extremities, and thus one extremity can't be correlated with the main trend.
The proposed Indicator
We want to minimize the correlation between the extremities, so if the upper extremity rise, the lower one must fall. This allow to give some headroom and allow the user to anticipate larger movements, this is how bands seeking to give support and resistances points should work.
The indicator has a length setting that control the wideness of the extremities, unlike other indicators low values such as 14 can still create really wide bands, take that into account.
length = 5. Lower length values allow for more motion from the extremities, but does not necessarily involve detecting shorter terms support and resistances levels. The factor setting is not that important, but it allow to return extremities with more motion when high, and really wide bands when below 1 and greater than 0.
Central Tendency Estimator
Something fun with the recursive band framework is that the bands are no longer based on the central tendency estimator but its the central tendency estimator who is based on the bands. The central tendency estimator can also provide support and resistances points with the price, like classical moving averages, altho its lack of motion is this time a downside.
Conclusion
Altho the extremities are more accurate than other band indicators, the problem remain the same, larger trend will always break the extremities and continue creating higher/lower highs/lows, at this point our stop loss would certainly be triggered. This is a huge downsides of contrarian strategy, we sure might anticipate reversals earlier, but we are exposed to larger price movements, therefore the risk is extreme.
But the proposed methodology might still prove useful to develop more robust support and resistances levels based on envelopes indicators.
Thanks for reading !
Market direction and pullback based on S&P 500.A simple indicator based on www.swing-trade-stocks.com The link is also the guide for how to use it.
0 - nothing. If the indicator is showing 0 for a prolonged amount of time, it is likely the market is in "momentum mode" (referred to in the link above).
1 - indicates an uptrend based on SMA and EMA and also a place where a reversal to the upside is likely to occur. You should look only for long trades in the stock market when you see a spike upwards and S&P 500 is showing an obvious uptrend.
-1 - indicates a downtrend based on SMA and EMA and also a place where a reversal to the downside is likely to occur. You should look only for short trades in the stock market when you see a spike upwards and S&P 500 is showing an obvious uptrend.
True Breakout Pattern [TradingFinder] Breakout Signal Indicator🔵 Introduction
In many market conditions, what initially appears to be a decisive breakout often turns out to be nothing more than a false breakout or fake breakout. Price breaks through a key swing level or an important support and resistance zone, only to quickly return to its previous range.
These failed breakouts, which are often the result of liquidity traps or market manipulation, serve more as a warning sign of structural weakness than confirmation of a new trend.
This indicator is designed around the concept of the fake breakout.
The logic is simple but precise : when price breaks a swing level and returns to that level within a maximum of five candles, the move is considered a false breakout. At this point, a Fibonacci retracement is applied to the recent price swing to evaluate the pullback area.
If price, within ten candles after the return to the breakout level, enters the Fibonacci zone between 0.618 and 1.0, the setup becomes valid for a potential entry. This area is identified as a long entry zone, with the stop loss placed just beyond the 1.0 level and the take profit defined based on the desired risk-to-reward ratio.
By combining accurate detection of false breakouts, analysis of price reaction to swing levels, and alignment with Fibonacci retracement logic, this framework allows traders to identify opportunities often missed by others. In a market where failed breakouts are a common and recurring phenomenon, this indicator aims to transform these traps into measurable trading opportunities.
Long Setup :
Short Setup :
🔵 How to Use
This indicator operates based on the recognition of false breakouts from structural levels in the market, specifically swing levels, and combines that with Fibonacci retracement analysis.
In this strategy, trades are only considered when price returns to the broken level within a defined time window and reacts appropriately inside a predefined Fibonacci range. Depending on the direction of the initial breakout, the system outlines two scenarios for long and short setups.
🟣 Long Setup
In the long setup, price initially breaks below a support level or swing low. If the price returns to the broken level within a maximum of five candles, the move is identified as a fake breakout.
At this stage, a Fibonacci retracement is drawn from the recent high to the low. If price, within ten candles of returning to the level, moves into the 0.618 to 1.0 Fibonacci zone, the conditions for a long entry are met.
The stop loss is placed slightly below the 1.0 level, while the take profit is set based on the trader’s preferred risk-reward ratio. This setup aims to capture deeply discounted entries at low risk, aligned with smart money reversals.
🟣 Short Setup
In the short setup, the price breaks above a resistance level or swing high. If the price returns to that level within five candles, the move is again treated as a false breakout. Fibonacci is then drawn from the recent low to the high to observe the retracement area.
Should price enter the 0.618 to 1.0 Fibonacci range within ten candles of returning, a short entry is considered valid. In this case, the stop loss is placed just above the 1.0 level, and the take profit is adjusted based on the intended risk-reward target. This method allows traders to identify high-probability short setups by focusing on failed breakouts and deep pullbacks.
🔵 Settings
🟣 Logical settings
Swing period : You can set the swing detection period.
Valid After Trigger Bars : Limits how many candles after a fake breakout the entry zone remains valid.
Max Swing Back Method : It is in two modes "All" and "Custom". If it is in "All" mode, it will check all swings, and if it is in "Custom" mode, it will check the swings to the extent you determine.
Max Swing Back : You can set the number of swings that will go back for checking.
🟣 Display settings
Displaying or not displaying swings and setting the color of labels and lines.
🟣 Alert Settings
Alert False Breakout : Enables alerts for Breakout.
Message Frequency : Determines the frequency of alerts. Options include 'All' (every function call), 'Once Per Bar' (first call within the bar), and 'Once Per Bar Close' (final script execution of the real-time bar). Default is 'Once per Bar'.
Show Alert Time by Time Zone : Configures the time zone for alert messages. Default is 'UTC'.
🔵 Conclusion
A sound understanding of the false breakout phenomenon and its relationship to structural price behavior is essential for technical traders aiming to improve precision and consistency. Many poor trading decisions stem from misinterpreting failed breakouts and entering too early into weak signals.
A structured approach, grounded in the analysis of swing levels and validated through specific price action and timing rules, can turn these misleading moves into valuable trade opportunities.
This indicator, by combining fake breakout detection with time filters and Fibonacci-based retracement zones, helps traders only engage with the market when multiple confirming factors are in alignment. The result is a strategy that emphasizes probability, risk control, and clarity in decision-making, offering a solid edge in navigating today’s volatile markets.
Momentum Trail Oscillator [AlgoAlpha]🟠 OVERVIEW
This script builds a Momentum Trail Oscillator designed to measure directional momentum strength and dynamically track shifts in trend bias using a combination of smoothed price change calculations and adaptive trailing bands. The oscillator aims to help traders visualize when momentum is expanding or contracting and to identify transitions between bullish and bearish conditions.
🟠 CONCEPTS
The core idea combines two methods. First, the script calculates a normalized momentum measure by smoothing price changes relative to their absolute values, which creates a bounded oscillator that highlights whether moves are directional or choppy. Second, it uses a trailing band mechanism inspired by volatility stops, where bands adapt to the oscillator’s volatility, adjusting the thresholds that define a shift in directional bias. This dual approach seeks to address both the magnitude and persistence of momentum, reducing false signals in ranging markets.
🟠 FEATURES
The momentum calculation applies Hull Moving Averages and double EMA smoothing to price changes, producing a smooth, responsive oscillator.
The trailing bands are derived by offsetting a weighted moving average of the oscillator by a multiple of recent momentum volatility. A directional state variable tracks whether the oscillator is above or below the bands, updating when the momentum crosses these dynamic thresholds.
Overbought and oversold zones are visually marked between fixed levels (+30/+40 and -30/-40), with color fills to highlight when momentum is in extreme areas. The script plots signals on both the oscillator pane and optionally overlays markers on the main price chart for clarity.
🟠 USAGE
To use the indicator, apply it to any symbol and timeframe. The “Oscillator Length” controls how sensitive the momentum line is to recent price changes—lower values react faster, higher values smooth out noise. The “Trail Multiplier” sets how far the adaptive bands sit from the oscillator mid-line, which affects how often trend state changes occur. When the momentum line rises into the upper filled area and then crosses back below +40, it signals potential overbought exhaustion. The opposite applies for the oversold zone below -40. The plotted trailing bands switch visibility depending on the current directional state: when momentum is trending up, the lower band acts as the active trailing stop, and when trending down, the upper band becomes active. Trend changes are marked with circular symbols when the direction variable flips, and optional overlay arrows appear on the price chart to highlight overbought or oversold reversals. Traders can combine these signals with their own price action or volume analysis to confirm entries or exits.
Trend Classifier [ChartPrime]Trend Classifier
This is a multi-level trend classification tool that detects bullish, bearish, and ranging conditions using an adaptive smoothing method. It highlights trend strength through color-coded candles and layered bands, making it easy to interpret market momentum visually.
⯁ KEY FEATURES
Classifies trend strength using 3 bullish and 3 bearish levels relative to an adaptive trend line.
Neutral (range) zones are marked when price stays between key bands, often signaling low volatility or consolidation.
Automatically filters band visibility based on current trend direction:
In uptrends, only levels below the price are displayed.
In downtrends, only levels above the price are shown.
Color-coded candles:
Aqua candles for bullish conditions.
Red candles for bearish conditions.
Orange candles during neutral or ranging conditions.
Includes a trend direction change marker (diamond), plotted when a shift in trend is detected.
Plots a central smoothed trend line to anchor the trend bands dynamically.
Displays a trend strength dashboard in the top-right corner with real-time bull and bear scores (0 to 3).
Labels with arrows (▲/▼) show current trend direction and strength on the chart.
⯁ HOW TO USE
Use bull and bear levels (1–3) to assess the momentum of the current trend.
When bull = 0 and bear = 0 , market is considered ranging or consolidating – consider fading or waiting for breakout confirmation.
Trend bands can be used as dynamic support/resistance during trending phases.
Monitor the trend change diamonds to spot potential early reversals.
Combine with volume or oscillator tools for confirmation of strength shifts.
⯁ CONCLUSION
Trend Classifier helps traders stay aligned with the dominant trend while visually breaking down market momentum into levels. Its clean color-coded design and strength dashboard make it ideal for both trend following and range trading strategies.
Volatility Price FlowCapitalize on market volatility with our new volatility price flow indicator. We have designed this indicator to process historical price movements and indicate when price may have reached exhaustion in the context of current volatility.
This is achieved by taking the price deviation from a user defined moving average, and applying a weighting to the deviations from the candle body and candle wick on both buy side and sell side, over a user defined period. The period of the base moving average, type of moving average and the period of the historical price deviations can all be modified. This creates a typical 'band' style indicator, though with a unique characteristic that the buy and sell side vary independently as well as the band expansion being based on weighted variables tied to the actual price changes, rather than just a standard deviation the moves uniformly.
Additionally, these bands can be merged with an anchored vwap - we do this so that the deviations of price from the moving average can include a more volume based approach to identifying potential pivots.
The end result is an indicator that reflects the current market price movements, identifies and capitalizes on impulsive or beginning moves to indicate potential tops / bottoms / reversals.
The signals are simple - anytime price closes within a band, having been outside the band, a signal is displayed. As a basic guide to setting the indicator up for the first time, we suggest reducing all of the multipliers to a value less than 1. Then gradually increase each one, until the signals reduce in quantity and improve in quality, starting with the price deviation multiplier, then the volatility multiplier and finally the expansion multiplier.
Last of all, alerts can be created based on the current chart timeframe and indicator settings, simply by adding an alert that uses the built in buy or sell signal.
Note: We cannot guarantee the accuracy of the signals provided, since the user creates the signals by modifying the settings, and as such we can take no responsibility for any trading losses incurred using the indicator and highly encourage all users to manage their risk and only risk what you can afford to lose.
[SHORT ONLY] Internal Bar Strength (IBS) Mean Reversion Strategy█ STRATEGY DESCRIPTION
The "Internal Bar Strength (IBS) Strategy" is a mean-reversion strategy designed to identify trading opportunities based on the closing price's position within the daily price range. It enters a short position when the IBS indicates overbought conditions and exits when the IBS reaches oversold levels. This strategy is Short-Only and was designed to be used on the Daily timeframe for Stocks and ETFs.
█ WHAT IS INTERNAL BAR STRENGTH (IBS)?
Internal Bar Strength (IBS) measures where the closing price falls within the high-low range of a bar. It is calculated as:
IBS = (Close - Low) / (High - Low)
- Low IBS (≤ 0.2) : Indicates the close is near the bar's low, suggesting oversold conditions.
- High IBS (≥ 0.8) : Indicates the close is near the bar's high, suggesting overbought conditions.
█ SIGNAL GENERATION
1. SHORT ENTRY
A Short Signal is triggered when:
The IBS value rises to or above the Upper Threshold (default: 0.9).
The Closing price is greater than the previous bars High (close>high ).
The signal occurs within the specified time window (between `Start Time` and `End Time`).
2. EXIT CONDITION
An exit Signal is generated when the IBS value drops to or below the Lower Threshold (default: 0.3). This prompts the strategy to exit the position.
█ ADDITIONAL SETTINGS
Upper Threshold: The IBS level at which the strategy enters trades. Default is 0.9.
Lower Threshold: The IBS level at which the strategy exits short positions. Default is 0.3.
Start Time and End Time: The time window during which the strategy is allowed to execute trades.
█ PERFORMANCE OVERVIEW
This strategy is designed for Stocks and ETFs markets and performs best when prices frequently revert to the mean.
The strategy can be optimized further using additional conditions such as using volume or volatility filters.
It is sensitive to extreme IBS values, which help identify potential reversals.
Backtesting results should be analyzed to optimize the Upper/Lower Thresholds for specific instruments and market conditions.
Overextension Oscillator [by DanielM]The Overextension Oscillator is an indicator that detects when a market move has extended significantly beyond its typical range, signaling potential areas for a correction or reversal. Unlike traditional oscillators that rely on fixed overbought/oversold levels, this tool dynamically adjusts its thresholds based on historical swing high and swing low movements.
By analyzing all swing points on the chart, the indicator determines the expected range of price movements and identifies when the price extends beyond normal levels. Since every asset has different price behavior and volatility, swing lengths may vary from asset to asset, ensuring that overextension is measured relative to each market's historical price behavior.
How It Works
1️⃣ Swing Detection & Data Collection
The indicator scans all available swing highs and swing lows on the chart to gather a complete dataset of past price fluctuations.
It records the percentage differences between swings to determine how much price typically moves in a given market.
2️⃣ Overextension Calculation
Using the stored swing data, the indicator calculates:
Average Swing Difference – Measures the average percentage difference between swings.
Average Move Percentage – Determines the typical magnitude of price moves within a trend cycle.
These values are used to create dynamic overextension thresholds that adjust based on historical data.
3️⃣ Price Distance & Overextension Measurement
The indicator calculates the distance between the current price and the closest historical swing point. If this distance exceeds the predefined threshold based on past swings, the move is considered overextended. The greater the deviation, the higher the probability of a pullback or short-term reversal.
4️⃣ Buy/Sell Signal Generation
A Buy signal is generated when the price has dropped below an overextended threshold relative to a past swing low.
A Sell signal is generated when the price has risen beyond an overextended threshold relative to a past swing high.
These signals indicate that the price has reached a level where it historically tends to slow down or reverse.
