Strongest TrendlineUnleashing the Power of Trendlines with the "Strongest Trendline" Indicator.
Trendlines are an invaluable tool in technical analysis, providing traders with insights into price movements and market trends. The "Strongest Trendline" indicator offers a powerful approach to identifying robust trendlines based on various parameters and technical analysis metrics.
When using the "Strongest Trendline" indicator, it is recommended to utilize a logarithmic scale . This scale accurately represents percentage changes in price, allowing for a more comprehensive visualization of trends. Logarithmic scales highlight the proportional relationship between prices, ensuring that both large and small price movements are given due consideration.
One of the notable advantages of logarithmic scales is their ability to balance price movements on a chart. This prevents larger price changes from dominating the visual representation, providing a more balanced perspective on the overall trend. Logarithmic scales are particularly useful when analyzing assets with significant price fluctuations.
In some cases, traders may need to scroll back on the chart to view the trendlines generated by the "Strongest Trendline" indicator. By scrolling back, traders ensure they have a sufficient historical context to accurately assess the strength and reliability of the trendline. This comprehensive analysis allows for the identification of trendline patterns and correlations between historical price movements and current market conditions.
The "Strongest Trendline" indicator calculates trendlines based on historical data, requiring an adequate number of data points to identify the strongest trend. By scrolling back and considering historical patterns, traders can make more informed trading decisions and identify potential entry or exit points.
When using the "Strongest Trendline" indicator, a higher Pearson's R value signifies a stronger trendline. The closer the Pearson's R value is to 1, the more reliable and robust the trendline is considered to be.
In conclusion, the "Strongest Trendline" indicator offers traders a robust method for identifying trendlines with significant predictive power. By utilizing a logarithmic scale and considering historical data, traders can unleash the full potential of this indicator and gain valuable insights into price trends. Trendlines, when used in conjunction with other technical analysis tools, can help traders make more informed decisions in the dynamic world of financial markets.
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Autoregressive CloudHello,
I am releasing this indicator called the Autoregressive Cloud Indicator.
What it does:
The indicator performs an autoregression analysis on 3 price variables of a ticker, those being the High, the Low and the Close. It uses a 1-lag system and looks back at the previous close, high and low’s effect on the proceeding high, low and close. It then plots out the anticipated range for the ticker based on the autoregression analysis, as well as displays the lag-correlation (autocorrelation) in a table.
What is Autoregression analysis?
Autoregression is a modelling technique used to describe a time series based on its own past values. It assumes that the current value of a variable is a linear combination of its previous values and a random error term.
And what is autocorrelation?
Autocorrelation measures the correlation between a time series and its lagged values. It quantifies the degree to which the current value of a series is related to its past values at different lags, indicating any patterns or dependencies in the data over time. Autoregression and autocorrelation are closely related concepts used to analyze and model time series data.
So how does it work?
The indicator calculates autoregressive values for the close, high, and low prices of a security based on the specified lookback length (which is defaulted to 50). It then plots three sets of clouds representing the smoothed autoregressive values for each price component (done using the SMA function). The transparency of the clouds can be adjusted using the "Transparency" input. Additionally, the code includes a correlation table that displays the correlation coefficients between the lagged values of the close, high, and low prices. The table's position can be customized using the "Position" input.
The indicator defaults to the chart timeframe; however, you can manually adjust the indicator to display the range for whatever timeframe you would like. You can view the 30 minute, 15 or even hourly range on the 1 minute or 5 minute chart if you want.
The indicator will show the anticipated “true trading range” of the stock based on the autoregression and autocorrelation of all 3 variables:
Above is SPY on the 5 minute timeframe with 15 minute levels overlayed. Here, you can see the anticipated trading range for that 15 minute time period.
Using the Correlation Table:
The correlation table displays the Pearson Coefficient for all 3 autoregressions.
A positive correlation: A positive autocorrelation indicates a positive relationship between past and current values of a time series variable. It suggests that when the variable has a high value at a certain time, it is more likely to have a high value in the future, and when it has a low value, it is more likely to have a low value in the future. This positive autocorrelation can imply persistence or trend in the data, indicating that past values can provide useful information for predicting future values. The rule of thumb is anything over 0.5 is considered significant.
A positive correlation among all 3 variables also indicates an uptrend. If you see a strong positive (i.e. the values are all greater than 0.8), it indicates an incredibly decisive and strong uptrend.
A negative correlation: A negative autocorrelation indicates an inverse relationship between past and current values of a time series variable. It suggests that when the variable has a high value at a certain time, it is more likely to have a low value in the future, and vice versa. This negative autocorrelation can imply mean reversion or oscillatory behavior in the data, where extreme values tend to be followed by values closer to the average. It indicates that past values can provide useful information for predicting future values by anticipating a reversal in the direction of the variable. The rule of thumb is anything below or equal to -0.5 is considered significant.
A negative correlation among all 3 variables also indicates a downtrend. If you see a strong negative (i.e. the values are all less than or equal to -0.8), it indicates an incredibly decisive and strong downtrend.
Uses of the Indicator:
The indicator can be used for the following functions:
1. Day trading and scalping within an expected range;
2. Determining the strength or weakness of an uptrend or downtrend on various timeframes;
3. Determining the relationship between previous values and past performance and its effect on future performance;
4. Can alert to changes in trend direction in advance (you may see high, low or close turn negative before others, signifying that weakness is beginning to materialize in an uptrend, or inverse in a downtrend (value changes positive)).
Customizability:
SMA: The autoregression data is smoothed by a 3 period lookback. You can change this if you want, but in order for the indicator to present the true trading range, it is recommended to leave it at <= 3.
Lookback Length: This is the length of the lookback period for the autoregression and autocorrelation functions.
Transparency settings: You can adjust the transparency of the clouds manually.
Timeframe: You can adjust the timeframe, as explained above, to display the timeframe of interest. When you adjust the timeframe, the data will all reflect that timeframe and not necessarily the current TF you have open (i.e. you select 30 minutes while viewing it on the 5 minute, it will show the data for the 30 minute TF period).
Video Tutorial:
I have prepared a video outlining the indicator and also explaining the theory of autoregression/correlation. You can find it below:
Let me know any comments, questions or suggestions below.
Thank you for taking the time to read/watch and check out this indicator.
Safe trades everyone!
Exponential ADR with Price TargetsThis script is designed to help you analyze price movements in the financial markets by calculating the Average Daily Range (ADR), adjusting it based on exponentiality and generating price targets based on that range.
The ADR represents the average range between the highest and lowest prices of a trading instrument during a specific period. It gives you an idea of how much the price typically moves in a day. In this script, we calculate the ADR using Simple Moving Averages (SMA) of the high and low prices over a certain length of time. You can customize this length according to your preference.
To make the ADR smoother and more responsive to recent price changes, we apply an Exponential Moving Average (EMA) to the ADR values. The EMA places more weight on recent data, giving you a more up-to-date measure of the ADR. The length of the EMA is also adjustable.
Once we have the Exponential ADR, we can generate price targets based on it. Price targets are potential levels where the price may reach in the future. We calculate these targets by adding or subtracting a certain multiple of the Exponential ADR from the current closing price. The multiple is determined by a parameter called the "Target Multiplier." You can adjust this value to control the distance of the price targets from the closing price.
In addition to plotting the Exponential ADR as a histogram on the chart, we create a table that displays the price targets. The table shows three bullish (positive) targets and three bearish (negative) targets. The targets are labeled as "Bull Target" or "Bear Target" followed by a number indicating the target's order. For each target, we display the corresponding price level.
To estimate the potential price levels, we used a formula that takes into account the current closing price and a value called the Exponential Average Daily Range (Exponential ADR). The Exponential ADR represents the average range of price movement over a specific period.
To calculate the price targets, we multiplied the Exponential ADR by a user-defined value called the target multiplier. This target multiplier allows traders to control the distance of the price targets from the current price. The resulting value indicates the desired distance from the current price for each target level.
For bullish targets, we added the calculated value to the current closing price. This suggests potential upward movement in the price. On the other hand, for bearish targets, we subtracted the calculated value from the current closing price. This indicates potential downward movement in the price.
By providing multiple target levels, such as level 1, level 2, and level 3, traders can assess different scenarios and potential price outcomes. These target levels help traders identify possible price levels where they might consider taking profit or adjusting their trading positions.
It's important to note that these price targets are not guaranteed to be reached, but they serve as reference points based on historical price behavior and the Exponential ADR. Traders can use them as part of their overall trading strategy and decision-making process.
Adjust the input parameters according to your desired settings, such as the ADR length, EMA length, target multiplier, table position, and table style. The indicator will then calculate and display the Exponential ADR and price targets on the chart, helping you identify potential levels of support and resistance for your trading decisions.
Advanced Trend Detection StrategyThe Advanced Trend Detection Strategy is a sophisticated trading algorithm based on the indicator "Percent Levels From Previous Close".
This strategy is based on calculating the Pearson's correlation coefficient of logarithmic-scale linear regression channels across a range of lengths from 50 to 1000. It then selects the highest value to determine the length for the channel used in the strategy, as well as for the computation of the Simple Moving Average (SMA) that is incorporated into the strategy.
In this methodology, a script is applied to an equity in which multiple length inputs are taken into consideration. For each of these lengths, the slope, average, and intercept are calculated using logarithmic values. Deviation, the Pearson's correlation coefficient, and upper and lower deviations are also computed for each length.
The strategy then selects the length with the highest Pearson's correlation coefficient. This selected length is used in the channel of the strategy and also for the calculation of the SMA. The chosen length is ultimately the one that best fits the logarithmic regression line, as indicated by the highest Pearson's correlation coefficient.
In short, this strategy leverages the power of Pearson's correlation coefficient in a logarithmic scale linear regression framework to identify optimal trend channels across a broad range of lengths, assisting traders in making more informed decisions.
Rate of DeviationThe Rate of Deviation indicator calculates and displays the amount the current price varies above or below the average price over Length bars. A deviation value greater than the base level indicates that the current price is higher than the price average while a deviation less than the base level indicates that the current price is lower than the price average.
StatBox📊 StatBox: A Comprehensive Trading Indicator for RSI, Volume Percent, and ADD 📈💼
Introducing StatBox, the ultimate trading indicator designed to provide traders with a powerful analytical toolset for making informed trading decisions. With StatBox, you gain access to real-time data on Relative Strength Index (RSI), Volume Percent, and ADD (Advance/Decline Differential). This dynamic combination of indicators empowers you to navigate the market with greater precision and confidence. 📊🔍
Key Features of StatBox:
1️⃣ RSI (Relative Strength Index): RSI is a widely recognized momentum oscillator that measures the speed and change of price movements. StatBox displays RSI as a numerical value, ranging from 0 to 100, allowing you to quickly assess whether a security is overbought or oversold. This information is invaluable for identifying potential reversal points and optimizing entry or exit strategies.
2️⃣ Volume Percent: StatBox provides a visual representation of the Volume Percent, which reflects the relative trading volume compared to a specified period. By monitoring volume dynamics, you gain insights into market sentiment and potential price trends. A higher volume percentage often indicates stronger market participation, suggesting increased interest in a particular security.
3️⃣ ADD (Advance/Decline Differential): ADD is a breadth indicator that calculates the difference between advancing (upward moving) and declining (downward moving) securities. StatBox presents ADD as a histogram, enabling you to assess the overall strength or weakness of the market. Positive values indicate bullish sentiment, while negative values suggest bearish sentiment. By tracking ADD, you can identify potential market reversals or confirm existing trends.
With StatBox, you can:
✅ Quickly gauge the overbought or oversold conditions of a security using RSI.
✅ Monitor volume dynamics to assess market sentiment and potential price trends.
✅ Analyze the breadth of the market and identify bullish or bearish signals with ADD.
✅ Make well-informed trading decisions based on a comprehensive view of multiple indicators.
StatBox provides a user-friendly interface, allowing you to seamlessly integrate it into your preferred trading platform or charting software. Its intuitive design and real-time data updates ensure you have the most accurate and up-to-date information at your fingertips.
Upgrade your trading arsenal and unlock the potential of RSI, Volume Percent, and ADD with StatBox. Experience the power of multiple indicators in a single comprehensive tool. Download StatBox today and gain a competitive edge in the dynamic world of trading! 🚀📈
Metrics using Alternative Portfolio TheoryLibrary "APT_Metrics"
Portfolio metrics using alternative portfolio theory
metrics(init, cur, start, end, alpha)
Calculates APT metrics
Parameters:
init (float) : Starting Equity (strategy.initial)
cur (float)
start (int) : Start date (UNIX)
end (int) : End Date (UNIX)
alpha (float) : Confidence interval for DaR/CDaR. Defval = 0.05
Returns: Plots table with APT metrics
The metrics are shown in the bottom pane being applied to a buy-and-hold strategy.
PLEASE NOTE: This is the first draft of the library. Some calculations may be incorrect. If you spot any mistakes then please let me know and I will correct them as soon as possible. I am also open to suggestions on how to improve this.
At the moment this only works on the daily timeframe until I can find a way to universally calculate annualized volatility.
Tick Profile HeatmapThis is a market internal TICK heatmap with the intent of displaying areas of price associated to stronger reactions with NYSE TICK (by default).
This code is based off of a variation of a Volume Profile coded originally by colejustice who originally used code from LuxAlgo . The full-width volume bars that colejustice setup were replaced with full-width bars representative of TICK breaking +/- $500, the current cumulative value representing the "heat" is comprised of hlc3 by default but that can be changed. In a future update I may add additional logic here to capture highs and lows in the heatmap specifically, and perhaps additional colors.
As with other traditional profiling studies, this indicators purpose is to visualize correspondence to specific price levels, allowing rapid assessment where the most TICK activity is occurring, and where it hasn't been. This information may provide areas of support and resistance and regions where price may move quickly repeatedly.
All of the same input guidance that colejustice provided is the same for those pre-existing inputs:
Inputs are set up such that you can customize the lookback period, number of rows, and width of rows for most major timeframes individually. Timeframes between those available will use the next lower timeframe settings (e.g., 2m chart will use the 1m settings.)
Zero usage of volume is present in this indicator, only TICK data so please don't confuse it with volume studies.
MACD TrueLevel StrategyThis strategy uses the MACD indicator to determine buy and sell signals. In addition, the strategy employs the use of "TrueLevel Bands," which are essentially envelope bands that are calculated based on the linear regression and standard deviation of the price data over various lengths.
The TrueLevel Bands are calculated for 14 different lengths and are plotted on the chart as lines. The bands are filled with a specified color to make them more visible. The highest upper band and lowest lower band values are stored in variables for easy access.
The user can input the lengths for the TrueLevel Bands and adjust the multiplier for the standard deviation. They can also select the bands they want to use for entry and exit, and enable long and short positions.
The entry conditions for a long position are either a crossover of the MACD line over the signal line or a crossover of the price over the selected entry lower band. The entry conditions for a short position are either a crossunder of the MACD line under the signal line or a crossunder of the price under the selected exit upper band.
The exit conditions for both long and short positions are not specified in the code and are left to the user to define.
Overall, the strategy aims to capture trends by entering long or short positions based on the MACD and TrueLevel Bands, and exiting those positions when the trend reverses.
RSI TrueLevel StrategyThis strategy is a momentum-based strategy that uses the Relative Strength Index (RSI) indicator and a TrueLevel envelope to generate trade signals.
The strategy uses user-defined input parameters to calculate TrueLevel envelopes for 14 different lengths. The TrueLevel envelope is a volatility-based technical indicator that consists of upper and lower bands. The upper band is calculated by adding a multiple of the standard deviation to a linear regression line of the price data, while the lower band is calculated by subtracting a multiple of the standard deviation from the same regression line.
The strategy generates long signals when the RSI crosses above the oversold level or when the price crosses above the selected lower band of the TrueLevel envelope. It generates short signals when the RSI crosses below the overbought level or when the price crosses below the selected upper band of the TrueLevel envelope.
The strategy allows for long and short trades and sets the trade size as a percentage of the account equity. The colors of the bands and fills are also customizable through user-defined input parameters.
In this strategy, the 12th TrueLevel band was chosen due to its ability to capture significant price movements while still providing a reasonable level of noise reduction. The strategy utilizes a total of 14 TrueLevel bands, each with varying lengths. The 12th band, with a length of 2646, strikes a balance between sensitivity to market changes and reducing false signals, making it a suitable choice for this strategy.
RSI Parameters:
In this strategy, the RSI overbought and oversold levels are set at 65 and 40, respectively. These values were chosen to filter out more noise in the market and focus on stronger trends. Traditional RSI overbought and oversold levels are set at 70 and 30, respectively. By raising the oversold level and lowering the overbought level, the strategy aims to identify more significant trend reversals and potential trade opportunities.
Of course, the parameters can be adjusted to suit individual preferences.
[TT] Sectors Dist % From MA- The script shows the distance in percentages from the 200 MA (or any other MA period) , for the 11 SP500 sectors.
- It works based on the current time frames.
Could be useful when working with mean reversion strategies to detect extremes zones and overbought/oversold conditions in the given sectors compared others.
BUY/SELL + ADVANCE DECLINEThis script is a custom trading view indicator that helps to identify potential buy and sell signals based on the RSI (Relative Strength Index) and SMA (Simple Moving Average) indicators. The script also identifies potential reversals using a combination of RSI and price action. It plots buy, sell, and reversal signals on the chart along with an SMA line. Additionally, it provides alerts based on the buy, sell, and reversal conditions.
Changes made to the original script:
Fixed the undeclared identifier 'c' error by calculating the difference between the current closing price and the previous closing price: c = close - close .
Added an "ADD Value Floating Label" to the chart. The label shows the difference between the current and previous closing prices (ADD value) along with a "Bullish" or "Bearish" indicator based on the value of 'c'. The label is positioned at the top right of the visible chart area and remains static.
Here's a summary of the major components of the script:
Input settings: Define the input parameters for RSI and SMA.
Calculation of RSI and SMA: Compute the RSI and SMA values based on the input parameters.
Color definitions: Define colors for different conditions and levels.
Condition definitions: Define various conditions for buy, sell, reversal, and other criteria.
Buy and sell conditions: Determine buy and sell signals based on RSI, SMA, and price action.
Reversal conditions: Identify potential reversals using RSI and price action.
Plot signals: Display buy, sell, and reversal signals on the chart.
Bar colors: Color the bars based on the identified signals.
Plot SMA: Display the SMA line on the chart.
Alert conditions: Set up alerts for buy, sell, and reversal conditions.
ADD Value Floating Label: Add a label to the chart showing the ADD value and a "Bullish" or "Bearish" indicator.
No Code SignalsNo Code Signals is an intuitive user interface for users to generate their own signals based on indicators they already have applied to their chart.
This indicator makes use of the new input.source() limits for importing data from external sources (indicators) into 1 indicator.
You are now able to import ANY number of sources from up to 10 different indicators.
Features:
- Import up to 10 unique values from up to 10 different indicators already on your chart!
- Compare those values against other imported indicator values, or chart ohlc values.
- Option to use a defined level instead of an active source.
- 5 Signal Options (Currently)
- Alerts, Each signal has its own alert condition.
- Labeled Signals, to tell which signal is which.
Potential Future Plans:
- More Signals & Analysis Options
- Possibly more imports
- Combining 2 (or more) signals into 1
Here is a Screenshot of a chart with signals, and the Interface creating the signals.
Enjoy!
52 Week High/Low FibonacciThe primary purpose of this indicator is to calculate and plot the 52-week high and low prices along with the Fibonacci retracement levels on the price chart. Fibonacci levels are commonly used in trading to identify potential support, resistance, and price reversal points.
First, the script initializes the Fibonacci levels and their corresponding colors, which will be used to plot the levels on the chart. Next, it calculates the 52-week high and low prices by finding the highest and lowest prices over the last 252 trading days, approximately equivalent to one year. Then, it identifies the overall trend direction by comparing the number of bars since the highest high and the lowest low. If the highest high is more recent, the trend is considered downwards; if the lowest low is more recent, the trend is upwards.
The script then plots the Fibonacci retracement levels on the chart, using horizontal lines at the respective price levels. It also creates labels for each level, displaying the percentage and the price value. Additionally, it draws a line connecting the 52-week high and low prices, providing a visual representation of the price range during the 52-week period.
Pros of this indicator include:
-Automatic calculation and plotting of Fibonacci levels, saving time for traders
-Clear trend identification based on 52-week high and low prices
-Visually appealing and easy-to-read chart representation with color-coded levels
-Provides insight into potential price reversal areas based on widely used Fibonacci levels
Cons of this indicator include:
-Only works on daily timeframes, limiting its usefulness for intraday and weekly traders
-Assumes that the trend will continue in the same direction, which may not always be accurate in real-world markets
-Does not provide explicit buy or sell signals, leaving the trading decision-making process up to the trader
-Solely relies on Fibonacci levels, which may not always be accurate; it is recommended to use other technical indicators or strategies alongside this indicator for a comprehensive trading approach
In conclusion, the '52 Week High Low Fibonacci' indicator is a valuable tool for traders interested in using Fibonacci levels for identifying potential price reversal points. By automatically calculating and plotting these levels based on 52-week high and low prices, the indicator provides a clear, color-coded visual aid, which can be especially helpful for traders who base their strategies on these levels.
However, it's worth noting that this indicator is limited to daily timeframes and doesn't provide explicit buy or sell signals, requiring traders to incorporate their own analysis and judgement in their decision-making process. The indicator also operates on the assumption of trend continuation, which may not always hold true.
While it's a beneficial tool, relying solely on this indicator for trading decisions may not be advisable. It's best used in conjunction with other indicators and trading strategies, providing a more balanced and comprehensive approach to trading in the financial markets. As always, risk management should be a key part of any trading strategy.
**YOUR INSIGHTFUL FEEDBACK OR SUGGESTIONS FOR REVISIONS TO THIS CODE ARE HIGHLY APPRECIATED. PLEASE FEEL FREE TO SHARE YOUR THOUGHTS TO FOSTER ITS CONTINUAL IMPROVEMENT**
Top12/Bottom88 Weighted Ratio I multiplied the price of each of the top QQQ holdings by their percentage weight, and the bottom 88 holdings for a total of 100. I divide the top 12 weighted price by the bottom 88 weighted price. So I can see when money is flowing in and out of the megacaps. It needs to be updated every quarter, which I may need to do now....
Golden ZoneIntroducing the "Golden Zone" indicator, a powerful tool that simplifies the Fibonacci indicator by creating a clear Golden Zone to identify potential future price movements. The Golden Zone is a supply or demand zone that corresponds to the 61.8% and 50% Fibonacci retracement levels. These levels are important because they often mark zones where the price reacts, making it an essential area for traders to watch.
The script plots the Fibonacci levels in the background, enabling traders to identify potential support and resistance levels quickly. The Golden Zone is highlighted with a yellow filled area, making it easy to spot on the chart. Traders use this zone to identify areas where the stock price may react, either bouncing off the support level or encountering resistance at the resistance level.
For example, if a stock price is moving up and reaches the Golden Zone, a trader may look for signs of resistance and consider selling the stock if the price begins to move back down. Conversely, if a stock price is moving down and reaches the Golden Zone, a trader may look for signs of support and consider buying the stock if the price begins to move back up.
The "Golden Zone" indicator is highly versatile and can be used in all markets, whether you are a swing trader or a day trader. It can be combined with other strategies, such as an EMA crossover strategy or price action, or as an area of confluence.
In summary, the "Golden Zone" indicator is a must-have tool for traders looking to identify potential price movements and locate key support and resistance levels. Its user-friendly inputs and clear display make it a valuable addition to any trading arsenal.
So, the "Golden Zone" indicator is like a magic tool that helps people who trade in the stock market find valuable things to buy or sell. And with its ability to identify key support and resistance levels, it can help traders make better-informed decisions when buying or selling stocks.
I hope you like it!
Tape (Time and Sales)OVERVIEW
This indicator is a synthesized "Tape" (aka. Time and Sales) from real time market data. It's specifically designed to be performant, expediting trading insights and decisions.
The table contains color-coded price action, volume size, and a timestamp data for each chart update. Because chart updates are independent of exchange orders, 1 chart update may combine more than 1 exchange and/or order. Even so, you're able to see very small and fast order flow changes, made possible by measuring real time volume differentials, and correlating them with price action.
Real time volume differentials are required for this indicator to be most useful. This is not ideal for historical analysis or TradingViews Replay feature.
INPUTS
You can can configure:
Table Position and Text Size
The Timestamp (visibility, format, timezone)
The number of lines to print
Volume Parameters (minimum size, large sizes, decimal precision)
Highlighting and Enlarging large sized prints
All the colors
DEV NOTES
This script illustrates:
The complimentary nature of loops and arrays
A method for iterative table management
Zero Lag Moving Average with Gaussian weightsIntroduction
The Zero Lag Moving Average (ZLMA) is a powerful technical indicator that aims to eliminate the lag inherent in traditional moving averages. This post provides a comprehensive exploration of the ZLMA with Gaussian Weights (GWMA) indicator, discussing the concepts, the calculations, and its application in trading.
Concepts
Zero Lag Moving Average (ZLMA): A ZLMA is an advanced moving average designed to reduce the lag in price movements associated with conventional moving averages. This reduction in lag enables traders to make more informed decisions based on the most recent price data.
Gaussian Weights: Gaussian weights are derived from the Gaussian function, which is a mathematical function used to calculate probabilities in a normal distribution. The Gaussian function is smooth, symmetric, and has a bell-shaped curve. In this context, Gaussian weights are used to calculate the weighted average of a series of data points.
Why Gaussian Weights are Beneficial
Gaussian Weights offer several advantages in comparison to traditional moving averages. One of the main reasons for using Gaussian Weights is to address the issue of lag, which is commonly associated with simple and exponential moving averages. By reducing lag, traders can make more informed decisions based on up-to-date information.
Another advantage of Gaussian Weights is their mathematical foundation, which is rooted in the Gaussian function. This function describes the normal distribution in probability theory and statistics. The smooth and symmetric bell-shaped curve of Gaussian Weights enables a more refined approach to handling data points, resulting in a more responsive and accurate moving average.
While exponential moving averages (EMAs) also assign more weight to recent data points, they can still exhibit some lag. Gaussian Weights, on the other hand, offer a smoother and more adaptive solution to different market conditions. By adjusting the smoothing period, traders can tailor the Gaussian Weights to their specific needs, making them a versatile tool for various trading strategies.
In summary, Gaussian Weights provide a valuable alternative to traditional moving averages due to their ability to reduce lag, their strong mathematical foundation, and their adaptability to different market conditions. These benefits make Gaussian Weights a worthwhile consideration for traders looking to enhance their trading strategies.
Calculations
The ZLMA with GWMA consists of two main calculations:
Gaussian Weight Calculation: The Gaussian weight for a given 'k' and 'smooth_per' is calculated using the standard deviation (sigma) and the exponent part of the Gaussian function.
Zero-Lag GWMA Calculation: The zero-lag GWMA is calculated using a source buffer, a Gaussian weighted moving average (gwma1), and an output array. The source buffer stores the input data, the gwma1 array stores the first Gaussian weighted moving average, and the output array stores the final zero-lag moving average.
Application in Trading
The ZLMA with GWMA indicator can be used to identify trends and potential entry/exit points in trading:
Trend Identification: When the ZLMA is above the price, it indicates a bearish trend, and when it is below the price, it indicates a bullish trend.
Entry/Exit Points: Traders can use crossovers between the ZLMA and price to identify potential entry and exit points. A long position could be taken when the price crosses above the ZLMA, and a short position could be taken when the price crosses below the ZLMA.
Conclusion
The Zero Lag Moving Average with Gaussian Weights is a powerful and versatile indicator that can be used in various trading strategies. By minimizing the lag associated with traditional moving averages, the ZLMA with GWMA provides traders with more accurate and timely information about price trends and potential trade opportunities.
Volume Weighted Pivot Point Moving Averages VPPMAAs traders and investors, we are constantly on the lookout for tools that can assist us in making informed decisions. While there are countless technical analysis tools available, sometimes even small, simple scripts can provide valuable insights. In this post, we will explore the Volume-Weighted Pivot Point Moving Average (PPMA) Indicator – a modest yet helpful script that could potentially enhance your trading experience.
Background
// © peacefulLizard50262
//@version=5
indicator("PPMA", overlay = true)
vppma(left, right)=>
signal = ta.change(ta.pivothigh(high, left, right)) or ta.change(ta.pivotlow(low, left, right))
var int count = na
var float sum = na
var float volume_sum = na
if not signal
count := nz(count ) + 1
sum := nz(sum ) + close * volume
volume_sum := nz(volume_sum ) + volume
else
count := na
sum := na
volume_sum := na
sum/volume_sum
left = input.int(50, "Pivot Left", 0)
plot(vppma(left, 0))
The Concept Behind PPMA Indicator
The Volume-Weighted Pivot Point Moving Average (PPMA) Indicator is a straightforward technical analysis tool that aims to help traders identify potential market turning points and trends. It does this by calculating a moving average based on price and volume data while considering pivot highs and pivot lows. The PPMA Indicator is designed to be more responsive than traditional moving averages by incorporating volume into its calculations.
Understanding the Script
The script is compatible with version 5 of the TradingView Pine Script language, and it features an overlay setting, allowing the indicator to be plotted directly onto the price chart. The customizable pivot left input enables traders to adjust the sensitivity of the pivot points.
The script first identifies pivot points, which are areas where the price changes direction. It then calculates the volume-weighted average price (VWAP) of each trading period between the pivot points. Finally, it plots the PPMA line on the chart, providing a visual representation of the volume-weighted average prices.
Using the PPMA Indicator
To use the PPMA Indicator, simply add the script to your TradingView chart. The indicator will plot the PPMA line directly onto the price chart. You can adjust the pivot left input to modify the sensitivity of the pivot points, depending on your preferred trading style.
When the PPMA line is trending upward, it may indicate a potential bullish trend. Conversely, a downward-trending PPMA line could suggest a bearish trend. The PPMA Indicator can be used in conjunction with other technical analysis tools to confirm potential trend changes and to establish entry or exit points for trades.
Conclusion
While the Volume-Weighted Pivot Point Moving Average (PPMA) Indicator may not be a game-changer, it is a modest yet helpful tool for traders looking to enhance their technical analysis. By incorporating volume into its calculations, the PPMA Indicator aims to provide more responsive signals compared to traditional moving averages. As with any trading tool, it is crucial to conduct your own analysis and combine multiple indicators before making any trading decisions.
Kalman RSIThis is a simplified version of Kalman RSI by onegreencandle.
Simplifications:
It shows the indicator for a single configurable length with a default of 14.
It does not color by region.
It allows selecting the source, with a default of close . The version by onegreencandle uses ohlc4 instead. Note that both versions also use high and low .
It uses the newer version (5) of Pine Script.
It sets bands at 85 and 15.
Aggregate Medians [wbburgin]This indicator recursively finds the average of all high/low medians under your chosen length. This can be very, very helpful for analyzing trends where a moving average or a normal median would produce a bunch of false signals.
Settings:
The "Length" setting is the maximum median that you want the algorithm to add into the sum. The "Start at Period" setting is the the minimum median that you want the algorithm to take into account. Starting at a higher period means that the faster, more sensitive medians of lower lengths are not included, and will smooth out your curve.
I haven't seen many recursive algorithms on TradingView so feel free to use this script as inspiration for any of your ideas. In theory, you can essentially replace the median function with any other function - a moving average, a supertrend, or anything else.
The start must be lower than the length, because this is a sum from the start to the length of all medians in between.
EMA + ATR Support and Resistance + Take Profit SignalThe 'EMA+ ATR Support Resistance Take Profit signal' indicator is a technical analysis tool designed to help traders identify potential support and resistance levels, using the Exponential Moving Average (EMA) and the Average True Range (ATR) indicators. This indicator not only tracks the EMA and ATR but also plots these levels as support and resistance lines, providing useful insights into potential buy and sell points.
The indicator allows you to set the lengths for both the EMA and ATR, with default values set to 20 and 14, respectively. Moreover, you can specify the multiplier for the ATR in the Support/Resistance (S/R) length setting, which defaults to 2. The line width for the plotted lines can also be adjusted according to your preference.
The EMA line in center is invisible by default but you can change that by going to the setting of the indicator. The support and resistance lines are plotted in green and red, respectively. When the price hits the support or resistance levels, the indicator provides a visual signal with a cross shape below or above the respective bars, in lime and red, respectively. If you do not need the take profit signals you can disable them in the setting.
How to Use:
1. Define the EMA and ATR lengths according to your trading strategy. Higher lengths will provide smoother lines but may also lag the current price action.
2. Set the S/R length to determine the distance of the support and resistance lines from the EMA line. Higher values will place these lines further away from the EMA.
3. Monitor the chart for instances when the price hits the support or resistance levels. This is indicated by a cross shape below (for support hit) or above (for resistance hit) the price bar. These points may be considered as potential take profit points or entry/exit points, depending on your strategy.
4. Use the indicator in conjunction with other tools and indicators to confirm signals and reduce the risk of false signals. So the assumption is you enter a trade using your other indicators but you can rely on this indicator to remind you to take profit if you are long by a red cross of the resistance line and if you are short reminds you by a green cross on the support line.
Disclaimer: This indicator should not be used as the sole determinant for any investment decision. Always conduct thorough research and consider multiple factors before trading.
SPY 4 Hour Swing TraderThe purpose of this script is to spot 4 hour pivots that indicate ~30 trading day swings. As VIX starts to drop options trading will get more boring and as we get back on the bull and can benefit from swing trading strategy. Swing trading doesn't make a whole lot of sense when VIX is above 28. Seems to get best results on 4 hour chart for this one. This indicator spots a go long opportunity when the 5 ema crosses the 13 ema on the 4 hour along with the RSI > 50 and the ADX > 20 and Stoichastic values (smoothed line < 80 or line < 90) and close > last candle close and the True Range < 6. It also spots uses a couple different means to determine when to exit the trade. Sell condition is primarily when the 13 ema crosses the 5 ema and the MACD line crosses below the signal line and the smoothed Stoichastic appears oversold (greater than 60) and slop of RSI < -.2. Stop Losses and Take Profits are configurable in Inputs along with ability to include short trades plus other MACD and Stoichastic settings. If a stop loss is encountered the trade will close. Also once twice the expected move is encountered partial profits will taken and stop losses and take profits will be re-established based on most recent close. Also a VIX above 28 will trigger any open positions to close. If trying to use this for something other than SPXL it is best to update stop losses and take profit percentages and check backtest results to ensure proper levels have been selected and the script gives satisfactory results.
