Stochastic Trendlines with Breakouts [Jamshid] - EnhancedStochastic Trendlines with Breakouts - Enhanced Version
This advanced Stochastic Trendlines with Breakouts script combines several powerful features to provide enhanced breakout detection based on the Stochastic Oscillator and additional confirmation signals. This script is designed to help traders identify key trend reversals, breakout points, and pivot levels with more accuracy by integrating advanced filters such as RSI confirmation, moving average trend filtering, volatility filtering, divergence detection, and multi-timeframe analysis.
Key Features:
Stochastic Oscillator-Based Breakouts:
Automatically detects breakouts based on the smoothed Stochastic Oscillator values (%K and %D), providing insights into overbought and oversold conditions.
Customizable overbought and oversold levels, with a mid-level (50) line for additional reference.
Trendlines on Pivot Points:
Automatically plots dynamic trendlines based on pivot highs and lows of the smoothed Stochastic %K, helping to visualize potential reversal points.
RSI Confirmation (Optional):
Filters breakout signals using the Relative Strength Index (RSI) to confirm breakouts only when the RSI is below 50 for downtrend breakouts and above 50 for uptrend breakouts.
Visual confirmation with a green "RSI Conf." label displayed on the chart when the RSI condition is met.
Moving Average Filter (Optional):
Confirms breakout signals in the direction of a user-defined Moving Average (MA) to trade in the overall market trend direction.
MA length is fully customizable.
Stochastic Divergence Filter (Optional):
Detects bullish or bearish divergence between the price and Stochastic Oscillator values, adding an extra layer of confirmation.
Multi-Timeframe Confirmation (Optional):
Confirms breakouts by checking the Stochastic %K and %D values from a higher timeframe. This helps in avoiding false signals by aligning with the broader market trend.
The higher timeframe can be customized to any timeframe (e.g., daily, weekly, etc.).
Volatility Filter (Optional):
Uses the ATR (Average True Range) to filter out breakouts during periods of low volatility, ensuring signals are only triggered when there is sufficient price movement.
ATR length and multiplier are fully customizable.
Custom Alerts:
Alerts are available for new trendline detections (both pivot high and pivot low) and for confirmed breakout signals. These alerts help traders stay informed in real-time without needing to monitor the chart continuously.
How to Use:
Customize the Stochastic Oscillator settings, such as %K smoothing and %D line parameters, to fit your trading strategy.
Enable or disable additional filtering features (RSI, MA, divergence, MTF, volatility) as needed.
Set up alerts for specific breakout conditions directly in TradingView to stay notified when breakout signals are triggered.
This script is designed for traders who are looking for precision breakout signals with added layers of confirmation to avoid false breakouts and enhance trading accuracy.
Stochastictrading
[KVA]K Stochastic IndicatorOriginal Stochastic Oscillator Formula:
%K=(C−Lowest Low)/(Highest High−Lowest Low)×100
Lowest Low refers to the lowest low of the past n periods.
Highest High refers to the highest high of the past n periods.
K Stochastic Indicator Formula:
%K=(Source−Lowest Source)/(Highest Source−Lowest Source)×100
Lowest Source refers to the lowest value of the chosen source over the past length periods.
Highest Source refers to the highest value of the chosen source over the past length periods.
Key Difference :
The original formula calculates %K using the absolute highest high and lowest low of the price over the past n periods.
The K Stochastic formula calculates %K using the highest and lowest values of a chosen source (which could be the close, open, high, or low) over the specified length periods.
So, if _src is set to something other than the high for the Highest Source or something other than the low for the Lowest Source, the K Stochastic will yield different results compared to the original formula which strictly uses the highest high and the lowest low of the price.
Impact on Traders :
Flexibility in Price Source :
By allowing the source (_src) to be customizable, traders can apply the Stochastic calculation to different price points (e.g., open, high, low, close, or even an average of these). This could provide a different perspective on market momentum and potentially offer signals that are more aligned with a trader's specific strategy.
Sensitivity to Price Action :
Changing the source from high/low to potentially less extreme values (like close or open) could result in a less volatile oscillator, smoothing out some of the extreme peaks and troughs and possibly offering a more filtered view of market conditions.
Customization of Periods :
The ability to adjust the length period offers traders the opportunity to fine-tune the sensitivity of the indicator to match their trading horizon. Shorter periods may provide earlier signals, while longer periods could filter out market noise.
Possibility of Applying the Indicator on Other Indicators :
Layered Technical Analysis :
The K Stochastic can be applied to other indicators, not just price. For example, it could be applied to a moving average to analyze its momentum or to indicators like RSI or MACD, offering a meta-analysis that studies the oscillator's behavior of other technical tools.
Creation of Composite Indicator s:
By applying the K Stochastic logic to other indicators, traders could create composite indicators that blend the characteristics of multiple indicators, potentially leading to unique signals that could offer an edge in certain market conditions.
Enhanced Signal Interpretation :
When applied to other indicators, the K Stochastic can help in identifying overbought or oversold conditions within those indicators, offering a different dimension to the interpretation of their output.
Overall Implications :
The KStochastic Indicator's modifications could lead to a more tailored application, giving traders the ability to adapt the tool to their specific trading style and analysis preferences.
By being applicable to other indicators, it broadens the scope of stochastic analysis beyond price action, potentially offering innovative ways to interpret data and make trading decisions.
The changes might also influence the trading signals, either by smoothing the oscillator's output to reduce noise or by altering the sensitivity to generate more or fewer signal
Including the additional %F line, which is unique to the K Stochastic Indicator, further expands the potential impacts and applications for traders:
Impact on Traders with the %F Line:
Triple Smoothing :
The %F line introduces a third level of smoothing, which could help in identifying longer-term trends and filtering out short-term fluctuations. This could be particularly useful for traders looking to avoid whipsaws and focus on more sustained movements.
Potential for Enhanced Confirmation :
The %F line might be used as a confirmation signal. For instance, if all three lines (%K, %D, and %F) are in agreement, a trader might consider this as a stronger signal to buy or sell, as opposed to when only the traditional two lines (%K and %D) are used.
Risk Management:
The additional line could be utilized for more sophisticated risk management strategies, where a trader might decide to scale in or out of positions based on the convergence or divergence of these lines.
Possibility of Applying the Indicator on Other Indicators with the %F Line:
Depth of Analysis :
When applied to other indicators, the %F line can provide an even deeper layer of analysis, perhaps identifying macro trends within the indicator it is applied to, which could go unnoticed with just the traditional two-line approach.
Refined Signal Strength Assessment :
The strength of signals from other indicators could be assessed by the position and direction of the %F line, providing an additional filter to evaluate the robustness of buy or sell signals.
Overall Implications with the %F Line :
The inclusion of the %F line in the K Stochastic Indicator enhances its utility as a tool for trend analysis and signal confirmation. It allows traders to potentially identify and act on more reliable trading opportunities.
This feature can enrich the trader's toolkit by providing a nuanced view of momentum and trend strength, which can be particularly valuable in volatile or choppy markets.
For those applying the K Stochastic to other indicators, the %F line could be integral in creating a multi-tiered analysis strategy, potentially leading to more sophisticated interpretations and decisions.
The presence of the %F line adds a dimension of depth to the analysis possible with the K Stochastic Indicator, making it a versatile tool that could be tailored to a variety of trading styles and objectives. However, as with any indicator, the additional complexity requires careful study and back-testing to ensure its signals are understood and actionable within the context of a comprehensive trading plan.
blackOrb PhaseMA matrix for identification of bullish/bearish macro phases and strategy implementation through the definition of effective MA lengths.
Moving Averages, when conventionally employed in either single-line or dual-line configurations, come with inherent limitations that hinder their effectiveness in capturing the complexities of varying market conditions.
In response to this challenge, blackOrb Phase utilizes a combination of quantitative and relational MA analysis techniques, providing users with a more comprehensive understanding of market trends and a granular derivation of price-dynamic phases by using the following features:
I. MA matrix to identify effective MA lengths for strategy implementation
II. Stochastic coloring for trend tracking and macro phase identification
III. Diverse MA options for enhanced analytical flexibility
Technical Methodology
I. MA Matrix to Identify Effective MA Lengths for Strategy Implementation
Central to the methodology is the ability to identify optimal MA lengths for effective strategy implementation. blackOrb Phase utilizes a matrix of multiple MAs, each characterized by unique parameters, to establish a relational grid structure. By systematically examining price data within predefined vertical segments, this matrix offers a linear multi-level modulation of historical price data, providing access to up to 500 prior data instances. This methodology enhances the analysis of both micro price dynamics shifts and bullish or bearish macro trend changes. It has been empirically validated that this approach can assist users to refine their analysis and adapt to varying market conditions*.
Crossings of MA lines with different colors signify potential shifts in price dynamic phases. When green MA lines intersect red MA lines, it suggests a higher likelihood of a macro trend change (bullish or bearish market environment). Conversely, when green MA lines cross over orange MA lines, it indicates a lower probability of a macro trend change but still suggests a potential micro trend shift. This micro trend shift can be viewed as a subordinate price dynamic change within the broader macro trend.
*Source: Prof. Pätäri, Eero. "Performance of moving average trading strategies over varying stock market conditions." Applied Economics, vol. 46, no. 24, 2014, pp. 2851-2872.
II. Stochastic Coloring for Trend Tracking and Macro Phase Identification
To provide a comprehensive view, this indicator includes a stochastic tracking feature, displayed through an intuitive single-color system across the entire matrix grid. The color scheme transitions from red lines, indicating the beginning of bearish trend phases, to green lines, indicating the initiation of bullish trend phases and vice versa. The greater the number of lines with the same color, the stronger the trend.
This tool enhances price trend monitoring, allowing traders not only to track their initiation and continuation but also to confirm trend culmination. By observing color shifts from red/green lines, traders can assess the sustainability and persistence of broader macro trends.
Note: Stochastic coloring aids in probability-based orientation and provides valuable insights for trading strategy implementation. It is most effective when used in conjunction with other analysis and risk management techniques.
III. Diverse MA Options for Enhanced Analytical Flexibility
Users have the flexibility to choose from 14 different MA types (e.g. including ALMA, KAMA, T3, VWMA, TriMA and ZLEMA). This versatility allows for precise configurations tailored to specific market conditions.
For example, among the array of these 14 MA alternatives, VWMA (Volume Weighted MA) stands out as a suitable implementation choice for integrating volume data. It goes beyond the scope of a simple moving average, considering both price and volume in its calculation, as shown in the following formula:
(C1 x V1 + C2 x V2 + ... + Cn x Vn) / (V1 + V2 + ... + Vn)
Alongside this variety of MA types, users can select from a range of OHLC combination options (open, high, low and close price data), further enhancing analytical flexibility.
Note: While these choices offer substantial flexibility, they also require a solid understanding of the various MA types and data combinations, making risk management essential.
Note on Usability
blackOrb Phase can have synergies with blackOrb Price and blackOrb Zone as all three indicators combined can give a bigger picture for supporting comprehensive and multifaceted data-driven trading analysis.
This tool was meticulously created to serve as an additional frame for the seamless integration of other more granular trading indicators. This indicator isn't intended for standalone trading application. Instead, it is serving as a supplementary tool for orientation within broader trading strategies.
Irrespective of market conditions, it can harmonize with a wider range of trading styles and instruments / trading pairs / indices like Stocks, Gold, FX, EURUSD, SPX500, GBPUSD, BTCUSD and Oil.
Inspiration and Publishing
Taking genesis from the inspirations amongst others provided by TradingView Pine Script Wizard Kodify, blackOrb Phase is a multi-encompassing script meticulously forged from scratch. It aspires to furnish a comprehensive approach, borne out of personal experiences and a strong dedication in supporting the trading community. We eagerly await valuable feedback to refine and further enhance this tool.
Stochastic EMA, SMA, VWMA + DivergenceEvery MetaTrader User knows the function to switch the stochastic calculation from simple to exponential.
So i took the original Stochastic code from TV and enhanced it for the SMA, EMA, and VWMA smoothing. If you are using a longer K Smoothing interval you will recognize a notable difference between SMA and EMA.
Standard Stochastic Calculation that is well kown
Option to switch smoothing calculation
Choice between Simple Moving Average, Exponential Moving Average, Volume Weighted Moving Average
If you have more wishes regarding the smoothing, just leave a comment i can add a lot more...
On my to-do list is also the divergence lines known from the "divergence indicator" (RSI).
I hope this helps to get better entries ;-)
Have fun!
MultiTimeFrame Stochastic
Multi Time Frame Stochastic
Fast, medium, slow and Too slow stochastic of current time frame and higher time frame for creating view for buying or selling
How to use
1. For Divergence - price making higher high but stochastic making lower high or vice versa
2. choosing strategy - whether buy the dips or sell on rise
3. deciding whether downtrend or uptrend is over or not - higher time frame stochastic comes from over brought to oversold
High Probablity Buy trade
Higher time frame stoch oversold and divergence seen in chart and stoch and lower low forming stopped in chart and stoch
High Probablity sell trade
Higher time frame stoch overbought and divergence seen in chart and stoch and higher high stopped in chart and stoch
caution : it only go to 0 to 100 so some time it is overbought for long time the fall or vice versa, use it with other confirmation like price action or candlestick pattern
if you like the work
paytm donation id ----- 7001473382@paytm
Ehlers Stochastic Relative Vigor Index [CC]The Stochastic Relative Vigor Index was created by John Ehlers (Cybernetic Analysis For Stocks And Futures pgs 84-89) and this of course is very similar to the Ehlers Fisher Stochastic Relative Vigor Index I just published. In hindsight I probably should have published this one first but just like with the other script this is a stochastic version of a Relative Vigor Index and I added some smoothing to make buy and sell signals clearer. There are several ways to identify buy and sell signals but generally in the long term it is a buy signal when the indicator is below the oversold line and is moving up and in the short term when the indicator is above it's trigger line which is what I coded the buy and sell signals to follow. Buy when the line is green and sell when it turns red.
Let me know if there are any other scripts you would like to see me publish!
