Strength of Divergence Across Multiple Indicators (+CMF&VWMACD)Modified Version of Strength of Divergence Across Multiple Indicators by reees
Purpose:
This Pine Script indicator is designed to identify and evaluate the strength of bullish and bearish divergences across multiple technical indicators. Divergences occur when the price of an asset is moving in one direction while a technical indicator is moving in the opposite direction, potentially signaling a trend reversal.
Key Features:
1. Multiple Indicator Support: The script now analyzes divergences for the following indicators:
* RSI (Relative Strength Index)
* OBV (On-Balance Volume)
* MACD (Moving Average Convergence/Divergence)
* STOCH (Stochastic Oscillator)
* CCI (Commodity Channel Index)
* MFI (Money Flow Index)
* AO (Awesome Oscillator)
* CMF (Chaikin Money Flow) - Newly added
* VWMACD (Volume-Weighted MACD) - Newly added
2. Customizable Divergence Parameters:
* Bullish/Bearish: Enable or disable the detection of bullish and bearish divergences independently.
* Regular/Hidden: Detect both regular and hidden divergences (hidden divergences can indicate trend continuation).
* Broken Trendline Exclusion: Optionally ignore divergences where the trendline connecting price pivots is broken by an intermediate pivot.
* Pivot Lookback Periods: Adjust the number of bars used to identify valid pivot highs and lows for divergence calculations.
* Weighting: Assign different weights to regular vs. hidden divergences and to the relative change in price vs. the indicator.
3. Indicator-Specific Settings:
* Weight: Each indicator can be assigned a weight, influencing its contribution to the overall divergence strength calculation.
* Extreme Value: Define a threshold above which an indicator's divergence is considered "extreme," giving it a higher strength rating.
4. Divergence Strength Calculation:
* For each indicator, the script calculates a divergence "degree" based on the magnitude of the divergence and the user-defined weightings.
* The total divergence strength is the sum of the individual indicator divergence degrees.
* Strength is categorized as "Extreme," "Very strong," "Strong," "Moderate," "Weak," or "Very weak."
5. Visualization:
* Divergence Lines: The script draws lines on the chart connecting the price and indicator pivots that form a divergence (optional, with customizable transparency).
* Labels: Labels display the total divergence strength and a breakdown of each indicator's contribution. The size and visibility of labels are based on the strength.
6. Alerts:
* The script can generate alerts when the total divergence strength exceeds a user-defined threshold.
New Indicators (CMF and VWMACD):
* Chaikin Money Flow (CMF):
* Purpose: Measures the buying and selling pressure by analyzing the relationship between price, volume, and the accumulation/distribution line.
* Divergence: A bullish CMF divergence occurs when the price makes a lower low, but the CMF makes a higher low (suggesting increasing buying pressure). A bearish divergence is the opposite.
* Volume-Weighted MACD (VWMACD):
* Purpose: Similar to the standard MACD but uses volume-weighted moving averages instead of simple moving averages, giving more weight to periods with higher volume.
* Divergence: Divergences are interpreted similarly to the standard MACD, but the VWMACD can be more sensitive to volume changes.
How It Works (Simplified):
1. Pivot Detection: The script identifies pivot highs and lows in both price and the selected indicators using the specified lookback periods.
2. Divergence Check: For each indicator:
* It checks if a series of pivots in price and the indicator are diverging (e.g., price makes a lower low, but the indicator makes a higher low for a bullish divergence).
* It calculates the divergence degree based on the difference in price and indicator values, weightings, and whether it's a regular or hidden divergence.
3. Strength Aggregation: The script sums up the divergence degrees of all enabled indicators to get the total divergence strength.
4. Visualization and Alerts: It draws lines and labels on the chart to visualize the divergences and generates alerts if the total strength exceeds the set threshold.
Benefits:
* Comprehensive Divergence Analysis: By considering multiple indicators, the script provides a more robust assessment of potential trend reversals.
* Customization: The many adjustable parameters allow traders to fine-tune the script to their specific trading style and preferences.
* Objective Strength Evaluation: The divergence strength calculation and categorization offer a more objective way to evaluate the significance of divergences.
* Early Warning System: Divergences can often precede significant price movements, making this script a valuable tool for anticipating potential trend changes.
* Volume Confirmation: The inclusion of CMF and VWMACD add volume-based confirmation to the divergence signals, potentially increasing their reliability.
Limitations:
* Lagging Indicators: Most of the indicators used are lagging, meaning they are based on past price data. Divergences may sometimes occur after a significant price move has already begun.
* False Signals: No indicator is perfect, and divergences can sometimes produce false signals, especially in choppy or ranging markets.
* Subjectivity: While the script aims for objectivity, some settings (like weightings and extreme values) still involve a degree of subjective judgment.
Promedio móvil ponderado por volumen (VWMA)
Volume IQOverview
Volume IQ is meant to be the ‘intelligent volume distribution analyzer’ that takes much of the work of interpreting volume profiles off of your shoulders. It attempts to ‘do the technical analysis’ of volume data for you, with its capstone feature being "Trading Action Zones": ranges on the chart whose placement are determined by high and low volume nodes and sentiment analysis, and their adapting range affected by current volatility. These zones are meant to offer practical levels for potential entries, exits, targets, and stops while trading. These zones are the cherry on top of other useful and original features like visuals for grouping areas of similar buy/sell bias.
Originality and Usefulness
Volume IQ stands out for its originality by offering a data-driven approach to interpreting volume profiles and presenting its analysis on the chart. Unlike traditional volume profiles, Volume IQ automates much of the volume analysis process, helping traders identify potential opportunities and key trading areas with minimal effort. Its unique "Trading Action Zones" leverage high and low volume nodes, sentiment analysis, and current volatility to highlight practical levels for entries, exits, targets, and stops. Additionally, the tool provides grouped bias visuals, gradient coloring, and flexible customization options, allowing traders to gain a clearer understanding of market sentiment and structure. By simplifying complex volume data into actionable insights, Volume IQ provides a valuable and efficient resource for charting on TradingView.
The ‘Capstone’ Feature:
Trading ‘Action Zones’: Potential areas to take trading action based on built-in interpretations of high-volume nodes, low-volume nodes, and overarching chart sentiment (whose calculation is described below), and their interplay. Categorized by tiers - with Tier 2 zones intended as potential entry areas, and Tier 1 zones for exits or adds. These zones can also present logical areas to consider targets and stops, for example placing a stop loss in a Tier 1 sell zone below price where there is a series of low-volume nodes and potentially not much support. These zones help you quickly identify potential areas on the chart to ‘take action’.
Key Features:
Level and Block Biases: By estimating buying and selling volume, as well as leveraging intrabar data, the Volume IQ profile provides detailed buy/sell sentiment at individual price levels. It then groups together consecutive price levels with the same bias into what we call ‘Block Biases’ making it easy to determine larger price areas with distinct buying or selling pressure.
Chart Sentiment Analysis: A ‘continuously optimizing algorithm’ configured to find high average runups after a sentiment switch powers what we call ‘bias guidelines’ which border the Volume IQ profile and influence the determination of Action Zones. This algorithm is based on comparing many combinations of volume-weighted trends, largely based on smoothed volume weighted moving averages, on each bar, to ensure that the approach with the highest average runup amongst the combinations is used.
Zones of Control: A gradient-coloring approach to the profile highlighst areas of influence at a glance, making it easier to focus on key price levels.
Broad Compatibility: Works across all chart timeframes and market types - so long as volume data and OHLC candle data is available.
Highly Customizable: Configure features to align with your trading preferences and workflow. Show them all, or pick and choose the ones you want.
Settings
Use a Color Theme: Toggle between our predefined color themes or customize your own.
Style: Select your preferred color theme (e.g., "TI Fusion").
Colors (When Not Using a Theme): Customize primary, secondary, and background colors for your own non-theme styling.
Gradient Coloring: Enable or disable gradient shading of the profile for visual enhancement of zones with high control and low control.
Action Zones: Turn trading action zones on or off to highlight key trading levels.
Time Staggering: Enabling this option will simply ‘stagger’ the display of action zones horizontally. Zones closer to price will be placed leftwards, and as they become more distant from price, they will be ‘staggered out’ rightwards, to give an intuitive feel for the time it may take for price to reach these zones.
Tier Labels: Enable or disable the ‘tier labels’ (1 square for Tier 1, 2 squares for Tier 2) for action zones.
Bias Blocks: Toggle the display of grouped buy/sell bias blocks.
Extend: Choose how the bias blocks are displayed: “Left” to stretch them from the end to the beginning of the histogram, “Right” to extend from the end outwards, and “Across” to extend from the beginning to outwards past the end, enveloping the bias and volume count labels.
Opacity: Adjust the transparency level of bias blocks (0–100).
Level Bias Labels: Turn on/off labels for individual price level biases.
Bias Guidelines: Enable the visual guidelines for bias levels which border the profile.
Volume Counts: Toggle volume count labels for each of the profile’s price levels.
Split Buy/Sell Volume: Enable separate display of buy and sell volume for each level (buy volume on the left, sell volume on the right).
Font Size: Adjust the font size for these labels.
Histogram Display: Choose the display option for the histogram bars of the profile themselves: "Full View" will display the profile, and “None” will hide it.
BG Shading Logic: Adjust the background shading logic for the display: “Neutral” will use the ‘Neutral Color’ from your color theme to put some emphasis around high and low volume nodes, while “None” will remove any background shading.
Detail: This option allows you to set the granularity of the volume data used: “Bar Data” will simply use the bar data from the chart timeframe, while “Intrabar Data” will attempt to use bar data from a lower timeframe. Please note that using intrabar data may not be available with your TradingView subscription on some timeframes, and also that using intrabar data may increase calculation time.
Data Request: Choose the lookback for the volume distribution: "Long-term" will look back 500 bars, and “Short-Term” will halve this.
# of Levels: Specify the number of levels/rows to display for visualizing the distribution.
Unique Trend Meter
this unique trend meter indicator is designed to provide a comprehensive view of market trends based on the interaction of multiple moving averages and the linear regression line. unlike other indicators that only focus on a single type of trend-following line, this strategy combines four different lines: the exponential moving average (ema), simple moving average (sma), volume-weighted moving average (vwma), and linear regression (linreg). by normalizing their values to a consistent scale of 0-5000, the indicator ensures that these lines are comparable, allowing for better trend analysis and decision-making.
key features and differences:
multiple trend lines: the indicator uses four different types of moving averages, offering a broader and more nuanced view of the market. while other indicators might only use one type, this strategy combines ema, sma, vwma, and linreg to capture various market behaviors.
normalization to 0-5000 scale: each of the moving averages is normalized to a 0-5000 scale. this allows for consistent comparisons across different lines and ensures that each trend line can be analyzed on a uniform range, making it easier to detect significant changes.
zone identification: this indicator doesn't directly generate buy or sell signals; instead, it focuses on identifying zones. when the linreg line crosses above all the other moving averages, it signals a potential bull zone, and when it crosses below, it indicates a bear zone. these zones represent areas where market conditions are favorable for either buying or selling, but they are not definitive trade signals.
background color: the background color changes dynamically based on the positions of the lines. when all the lines are above 1000, the background turns green, indicating a bullish environment. when they fall below 4000, the background turns red, signaling a bearish environment. this visual cue helps traders quickly identify the prevailing market sentiment.
crossover detection: the indicator also detects when the linreg line crosses above or below the other lines, indicating potential shifts in market direction. these crossovers can serve as a signal for traders to pay closer attention to the current trend, even though they are not directly tradable signals.
no tables or unnecessary clutter: unlike some other indicators that include tables or complex elements, this one is designed to be as simple and clean as possible, focusing on the trend lines and background color for easy interpretation.
main purpose of the indicator: this unique trend meter is primarily focused on identifying zones (bull and bear zones) based on the behavior of four key moving averages. it’s not intended to provide direct buy or sell signals but instead helps traders understand when the market is in a bullish or bearish environment based on the interaction of multiple trend lines. traders can use these zones to make more informed decisions, aligning their trades with the overall market trend.
in summary, this indicator offers a holistic view of market trends, giving traders a clearer understanding of when to anticipate a potential shift in market conditions. its emphasis on zones, combined with the use of multiple trend lines, makes it stand out from other simpler indicators that only rely on one type of moving average or trend-following line.
Granular Candle-by-Candle VWAPGranular Candle-by-Candle VWAP is a customizable Volume Weighted Average Price (VWAP) indicator designed for TradingView. Unlike traditional VWAP indicators that operate on the chart's primary timeframe, this script enhances precision by incorporating lower timeframe (e.g., 1-minute) data into VWAP calculations. This granular approach provides traders with a more detailed and accurate representation of the average price, accounting for intra-bar price and volume movements. The indicator dynamically adjusts to the chart's current timeframe and offers a range of customization options, including price type selection, visual styling, and alert configurations.
Customizable Features
Users have extensive control over various aspects of the Granular Candle-by-Candle VWAP indicator. Below are the key features that can be customized to align with individual trading preferences:
🎛️ Customizable Features
Users have extensive control over various aspects of the Granular Candle-by-Candle VWAP indicator. Below are the key features that can be customized to align with individual trading preferences:
🔢 Lookback Period
Description: Defines the number of lower timeframe bars used in the VWAP calculation.
Customization:
Input: VWAP Lookback Period (Number of Lower Timeframe Bars)
Default Value: 20 bars
Range: Minimum of 1 bar
Purpose: Allows traders to adjust the sensitivity of the VWAP. A smaller lookback period makes the VWAP more responsive to recent price changes, while a larger period smoothens out fluctuations.
📈 Price Type Selection
Description: Determines which price metric is used in the VWAP calculation.
Customization:
Input: Price Type for VWAP Calculation
Options:
Open: Uses the opening price of each lower timeframe bar.
High: Uses the highest price of each lower timeframe bar.
Low: Uses the lowest price of each lower timeframe bar.
Close: Uses the closing price of each lower timeframe bar.
OHLC/4: Averages the Open, High, Low, and Close prices.
HL/2: Averages the High and Low prices.
Typical Price: (High + Low + Close) / 3
Weighted Close: (High + Low + 2 × Close) / 4
Default Value: Close
Purpose: Offers flexibility in how the average price is calculated, allowing traders to choose the price metric that best fits their analysis style.
🕒 Lower Timeframe Selection
Description: Specifies the lower timeframe from which data is fetched for granular VWAP calculations.
Customization:
Input: Lower Timeframe for Granular Data
Default Value: 1 minute ("1")
Options: Any valid TradingView timeframe (e.g., "1", "3", "5", "15", etc.)
Purpose: Enables traders to select the granularity of data used in the VWAP calculation, enhancing the indicator's precision on higher timeframe charts.
🎨 VWAP Line Customization
Description: Adjusts the visual appearance of the VWAP line based on price position relative to the VWAP.
Customizations:
Color When Price is Above VWAP:
Input: VWAP Color (Price Above)
Default Value: Green
Color When Price is Below VWAP:
Input: VWAP Color (Price Below)
Default Value: Red
Line Thickness:
Input: VWAP Line Thickness
Default Value: 2
Range: Minimum of 1
Line Style:
Input: VWAP Line Style
Options: Solid, Dashed, Dotted
Default Value: Solid
Purpose: Enhances visual clarity, allowing traders to quickly assess price positions relative to the VWAP through color coding and line styling.
🔔 Alerts and Notifications
Description: Provides real-time notifications when the price crosses the VWAP.
Customizations:
Enable/Disable Alerts:
Input: Enable Alerts for Price Crossing VWAP
Default Value: Enabled (true)
Alert Conditions:
Price Crossing Above VWAP:
Trigger: When the closing price crosses from below to above the VWAP.
Alert Message: "Price has crossed above the Granular VWAP."
Price Crossing Below VWAP:
Trigger: When the closing price crosses from above to below the VWAP.
Alert Message: "Price has crossed below the Granular VWAP."
Purpose: Keeps traders informed of significant price movements relative to the VWAP, facilitating timely trading decisions.
📊 Plotting and Visualization
Description: Displays the calculated Granular VWAP on the chart with user-defined styling.
Customization Options:
Color, Thickness, and Style: As defined in the VWAP Line Customization section.
Track Price Feature:
Parameter: trackprice=true
Function: Ensures that the VWAP line remains visible even when the price moves far from the VWAP.
Purpose: Provides a clear and persistent visual reference of the VWAP on the chart, aiding in trend analysis and support/resistance identification.
⚙️ Performance Optimizations
Description: Ensures the indicator runs efficiently, especially on higher timeframes with large datasets.
Strategies Implemented:
Minimized Security Calls: Utilizes two separate request.security calls to fetch necessary data, balancing functionality and performance.
Efficient Calculations: Employs built-in functions like ta.sum for rolling calculations to reduce computational load.
Conditional Processing: Alerts are processed only when enabled, preventing unnecessary computations.
Purpose: Maintains smooth chart performance and responsiveness, even when using lower timeframe data for granular calculations.
Moving AveragesWhile this "Moving Averages" indicator may not revolutionize technical analysis, it certainly offers a valuable and efficient solution for traders seeking to streamline their chart analysis process. This all-in-one tool addresses a common frustration among traders: the need to constantly search for and compare different types and lengths of moving averages.
Key Features
The indicator allows for the configuration of up to 5 moving averages simultaneously, providing a comprehensive view of price trends. Users can choose from 7 types of moving averages for each line, including SMA, EMA, WMA, VWMA, HMA, SMMA, and TMA. This variety ensures that traders can apply their preferred moving average types without the need for multiple indicators.
Each moving average can be fully customized in terms of length, color, line style, and thickness, allowing for clear visual differentiation. However, what sets this indicator apart is its "Smart Opacity" feature. When activated, this option dynamically adjusts the transparency of the moving average lines based on their direction, with ascending lines appearing more opaque and descending lines more transparent. This subtle yet effective visual cue aids in quickly identifying trend changes and potential trading signals.
Advantages
The primary benefit of this indicator lies in its convenience. By consolidating multiple moving averages into a single, customizable tool, it saves traders valuable time and reduces chart clutter. The Smart Opacity feature, while not groundbreaking, does offer an intuitive way to visualize trend strength and direction at a glance.
Moreover, the indicator's flexibility makes it suitable for various trading styles and experience levels. Whether you're a novice trader learning to interpret basic trend signals or an experienced analyst fine-tuning a complex strategy, this tool can adapt to your needs.
In conclusion, while this "Moving Averages" indicator may not be a game-changer in the world of technical analysis, it represents a thoughtful refinement of a fundamental trading tool. By focusing on user convenience and visual clarity, it offers a practical solution for traders looking to optimize their chart analysis process and make more informed trading decisions.
Chill in WavesChill in Waves is a distinctive technical indicator that integrates both volume and price action, specifically designed to help traders identify key market trends and optimize entry/exit points. What sets this indicator apart is its ability to normalize data using Z-score techniques, making it highly adaptable and reliable across any timeframe, from short-term intraday trading to long-term position strategies.
Key Features and What Makes it Unique:
1. Volume-Weighted Moving Averages (VWMA): At the core of Chill in Waves are two volume-weighted moving averages (VWMA), which highlight periods of strong price movement influenced by high trading volume. The use of VWMA ensures that market activity during times of increased volume has a greater influence on the signals generated. This provides a more accurate reflection of market sentiment compared to traditional moving averages.
2. Z-Score Normalization: One of the key innovations of Chill in Waves is its Z-score normalization of the difference between the fast and slow VWMAs. This normalization helps to smooth out the noise typically present in raw market data, allowing traders to better identify statistically significant deviations from historical price norms. By using normalized data, traders can confidently apply this indicator across all timeframes without the risk of distortion caused by extreme values or outliers. This is especially beneficial for traders who operate in volatile markets.
3. Versatility Across Timeframes: Unlike many indicators that are calibrated for specific timeframes, Chill in Waves is designed for use on all timeframes, from minute-by-minute charts to daily, weekly, and even monthly charts. The Z-score normalization ensures that signals are consistently reliable, no matter the timeframe you are trading in, providing traders with a flexible tool to adapt to any market conditions.
4. Clear Visual Cues for Buy/Sell Signals: Chill in Waves offers straightforward visual cues by plotting Z-scores with color-coded signals: green for potential bullish trends and red for bearish movements. This makes it easy for traders to quickly assess market conditions at a glance, without the need to interpret complex calculations.
5. Customizable Trailing Stop Feature: To further support effective risk management, Chill in Waves includes a customizable trailing stop feature, allowing traders to lock in profits while minimizing downside risk. The flexibility in adjusting the trailing stop percentage ensures that the indicator can be tailored to fit each trader’s risk tolerance and strategy.
Buy and Sell Logic:
Buy Logic: A long position is triggered when both the fast and slow VWMA Z-scores are trending upward, signaling a statistically significant shift toward bullish price action.
Sell Logic: Positions are closed when the trailing stop condition is met or after a predetermined period, ensuring traders can capture gains while limiting exposure to downside risk.
Customization Options:
VWMA Length: Traders can adjust the lengths of the fast and slow VWMA to better suit specific market conditions or individual asset classes.
Bar Color Customization: For additional visual clarity, you can enable an optional feature that changes the color of price bars based on the Z-score difference, providing further insight into market momentum.
Chill in Waves stands out as a flexible and robust indicator for traders across all timeframes, combining the power of volume-weighted moving averages with normalized data to produce accurate and adaptable buy/sell signals. Whether you're a short-term scalper or a long-term trend follower, this indicator offers you the calm confidence needed to ride the waves of market volatility.
Median Moving Average @shrilssThe "Median Moving Average" (MMA) It allows users to select from two moving average lengths—short and long—and plots the median moving average, which is the midpoint between these two averages. Colored green for upward trends and red for downward trends, enhancing visual analysis.
Additionally, users can choose from a range of moving average types including Simple (SMA), Exponential (EMA), Weighted (WMA), Double Exponential (DEMA), Triple Exponential (TEMA), Hull (HMA), and Volume Weighted (VWMA).
Golden Cross VWMA & EMA 4h PinescriptlabsThis strategy combines the 50-period Volume-Weighted Moving Average (VWMA) on the current timeframe with a 200-period Simple Moving Average (SMA) on the 4-hour timeframe. This combination of indicators with different characteristics and time horizons aims to identify strong and sustained trends across multiple timeframes.
The VWMA is a variant of the moving average that assigns greater weight to periods of higher volatility, helping to avoid misleading signals. On the other hand, the 4-hour SMA is used as an additional trend filter in a shorter-term horizon. By combining these two indicators, the strategy can leverage the strength of the VWMA to capture the main trend, but only when confirmed by the SMA in the lower timeframe.
Buy signals are generated when the VWMA crosses above the 4-hour SMA, indicating a potential bullish trend aligned in both timeframes. Sell signals occur on a bearish cross, suggesting a possible reversal of the main trend.
The default parameters are a 50-period VWMA and a 200-period 4-hour SMA. It is recommended to adjust these lengths according to the traded instrument and the desired timeframe. It is also crucial to use stop losses and profit targets to properly manage risk.
By combining indicators of different types and timeframes, this strategy aims to provide a more comprehensive view of trend strength.
Español:
Esta estrategia combina la Volume-Weighted Moving Average (VWMA) de 50 períodos en el timeframe actual con una Simple Moving Average (SMA) de 200 períodos en el timeframe de 4 horas. Esta combinación de indicadores de distinta naturaleza y horizontes temporales busca identificar tendencias fuertes y sostenidas en múltiples timeframes.
La VWMA es una variante de la media móvil que asigna mayor ponderación a los períodos de mayor volatilidad, lo que ayuda a evitar señales engañosas. Por otro lado, la SMA de 4 horas se utiliza como un filtro adicional de tendencia en un horizonte de corto plazo. Al combinar estos dos indicadores, la estrategia puede aprovechar la fortaleza de la VWMA para capturar la tendencia principal, pero sólo cuando es confirmada por la SMA en el timeframe menor.
Las señales de compra se generan cuando la VWMA cruza al alza la SMA de 4 horas, indicando una potencial tendencia alcista alineada en ambos horizontes temporales. Las señales de venta ocurren en el cruce bajista, sugiriendo una posible reversión de la tendencia principal.
Los parámetros predeterminados son: VWMA de 50 períodos y SMA de 4 horas de 200 períodos. Se recomienda ajustar estas longitudes según el instrumento operado y el horizonte temporal deseado. También es crucial utilizar stops y objetivos de ganancias para controlar adecuadamente el riesgo.
Al combinar indicadores de diferentes tipos y timeframes, esta estrategia busca brindar una visión más completa de la fuerza de la tendencia.
Dynamic Price Targets @shrilssDynamic Price Targets is a designed to provide traders with a comprehensive view of dynamic price levels based on Volume Weighted Moving Average (VWMA) and standard deviation. This script allows users to identify potential support and resistance zones, aiding in strategic decision-making during market analysis.
The script calculates the VWMA of a chosen price source over a specified length, establishing a dynamic baseline for market trends. The standard deviation is then used to derive multiple upper and lower targets, each representing a certain deviation from the VWMA. These levels are color-coded for clarity, with upper targets displayed in shades of red and lower targets in shades of green.
Machine Learning: STDEV Oscillator [YinYangAlgorithms]This Indicator aims to fill a gap within traditional Standard Deviation Analysis. Rather than its usual applications, this Indicator focuses on applying Standard Deviation within an Oscillator and likewise applying a Machine Learning approach to it. By doing so, we may hope to achieve an Adaptive Oscillator which can help display when the price is deviating from its standard movement. This Indicator may help display both when the price is Overbought or Underbought, and likewise, where the price may face Support and Resistance. The reason for this is that rather than simply plotting a Machine Learning Standard Deviation (STDEV), we instead create a High and a Low variant of STDEV, and then use its Highest and Lowest values calculated within another Deviation to create Deviation Zones. These zones may help to display these Support and Resistance locations; and likewise may help to show if the price is Overbought or Oversold based on its placement within these zones. This Oscillator may also help display Momentum when the High and/or Low STDEV crosses the midline (0). Lastly, this Oscillator may also be useful for seeing the spacing between the High and Low of the STDEV; large spacing may represent volatility within the STDEV which may be helpful for seeing when there is Momentum in the form of volatility.
Tutorial:
Above is an example of how this Indicator looks on BTC/USDT 1 Day. As you may see, when the price has parabolic movement, so does the STDEV. This is due to this price movement deviating from the mean of the data. Therefore when these parabolic movements occur, we create the Deviation Zones accordingly, in hopes that it may help to project future Support and Resistance locations as well as helping to display when the price is Overbought and Oversold.
If we zoom in a little bit, you may notice that the Support Zone (Blue) is smaller than the Resistance Zone (Orange). This is simply because during the last Bull Market there was more parabolic price deviation than there was during the Bear Market. You may see this if you refer to their values; the Resistance Zone goes to ~18k whereas the Support Zone is ~10.5k. This is completely normal and the way it is supposed to work. Due to the nature of how STDEV works, this Oscillator doesn’t use a 1:1 ratio and instead can develop and expand as exponential price action occurs.
The Neutral (0) line may also act as a Support and Resistance location. In the example above we can see how when the STDEV is below it, it acts as Resistance; and when it’s above it, it acts as Support.
This Neutral line may also provide us with insight as towards the momentum within the market and when it has shifted. When the STDEV is below the Neutral line, the market may be considered Bearish. When the STDEV is above the Neutral line, the market may be considered Bullish.
The Red Line represents the STDEV’s High and the Green Line represents the STDEV’s Low. When the STDEV’s High and Low get tight and close together, this may represent there is currently Low Volatility in the market. Low Volatility may cause consolidation to occur, however it also leaves room for expansion.
However, when the STDEV’s High and Low are quite spaced apart, this may represent High levels of Volatility in the market. This may mean the market is more prone to parabolic movements and expansion.
We will conclude our Tutorial here. Hopefully this has given you some insight into how applying Machine Learning to a High and Low STDEV then creating Deviation Zones based on it may help project when the Momentum of the Market is Bullish or Bearish; likewise when the price is Overbought or Oversold; and lastly where the price may face Support and Resistance in the form of STDEV.
If you have any questions, comments, ideas or concerns please don't hesitate to contact us.
HAPPY TRADING!
Multi-TF AI SuperTrend with ADX - Strategy [PresentTrading]
## █ Introduction and How it is Different
The trading strategy in question is an enhanced version of the SuperTrend indicator, combined with AI elements and an ADX filter. It's a multi-timeframe strategy that incorporates two SuperTrends from different timeframes and utilizes a k-nearest neighbors (KNN) algorithm for trend prediction. It's different from traditional SuperTrend indicators because of its AI-based predictive capabilities and the addition of the ADX filter for trend strength.
BTC 8hr Performance
ETH 8hr Performance
## █ Strategy, How it Works: Detailed Explanation (Revised)
### Multi-Timeframe Approach
The strategy leverages the power of multiple timeframes by incorporating two SuperTrend indicators, each calculated on a different timeframe. This multi-timeframe approach provides a holistic view of the market's trend. For example, a 8-hour timeframe might capture the medium-term trend, while a daily timeframe could capture the longer-term trend. When both SuperTrends align, the strategy confirms a more robust trend.
### K-Nearest Neighbors (KNN)
The KNN algorithm is used to classify the direction of the trend based on historical SuperTrend values. It uses weighted voting of the 'k' nearest data points. For each point, it looks at its 'k' closest neighbors and takes a weighted average of their labels to predict the current label. The KNN algorithm is applied separately to each timeframe's SuperTrend data.
### SuperTrend Indicators
Two SuperTrend indicators are used, each from a different timeframe. They are calculated using different moving averages and ATR lengths as per user settings. The SuperTrend values are then smoothed to make them suitable for KNN-based prediction.
### ADX and DMI Filters
The ADX filter is used to eliminate weak trends. Only when the ADX is above 20 and the directional movement index (DMI) confirms the trend direction, does the strategy signal a buy or sell.
### Combining Elements
A trade signal is generated only when both SuperTrends and the ADX filter confirm the trend direction. This multi-timeframe, multi-indicator approach reduces false positives and increases the robustness of the strategy.
By considering multiple timeframes and using machine learning for trend classification, the strategy aims to provide more accurate and reliable trade signals.
BTC 8hr Performance (Zoom-in)
## █ Trade Direction
The strategy allows users to specify the trade direction as 'Long', 'Short', or 'Both'. This is useful for traders who have a specific market bias. For instance, in a bullish market, one might choose to only take 'Long' trades.
## █ Usage
Parameters: Adjust the number of neighbors, data points, and moving averages according to the asset and market conditions.
Trade Direction: Choose your preferred trading direction based on your market outlook.
ADX Filter: Optionally, enable the ADX filter to avoid trading in a sideways market.
Risk Management: Use the trailing stop-loss feature to manage risks.
## █ Default Settings
Neighbors (K): 3
Data points for KNN: 12
SuperTrend Length: 10 and 5 for the two different SuperTrends
ATR Multiplier: 3.0 for both
ADX Length: 21
ADX Time Frame: 240
Default trading direction: Both
By customizing these settings, traders can tailor the strategy to fit various trading styles and assets.
Double AI Super Trend Trading - Strategy [PresentTrading]█ Introduction and How It is Different
The Double AI Super Trend Trading Strategy is a cutting-edge approach that leverages the power of not one, but two AI algorithms, in tandem with the SuperTrend technical indicator. The strategy aims to provide traders with enhanced precision in market entry and exit points. It is designed to adapt to market conditions dynamically, offering the flexibility to trade in both bullish and bearish markets.
*The KNN part is mainly referred from @Zeiierman.
BTCUSD 8hr performance
ETHUSD 8hr performance
█ Strategy, How It Works: Detailed Explanation
1. SuperTrend Calculation
The SuperTrend is a popular indicator that captures market trends through a combination of the Volume-Weighted Moving Average (VWMA) and the Average True Range (ATR). This strategy utilizes two sets of SuperTrend calculations with varying lengths and factors to capture both short-term and long-term market trends.
2. KNN Algorithm
The strategy employs k-Nearest Neighbors (KNN) algorithms, which are supervised machine learning models. Two sets of KNN algorithms are used, each focused on different lengths of historical data and number of neighbors. The KNN algorithms classify the current SuperTrend data point as bullish or bearish based on the weighted sum of the labels of the k closest historical data points.
3. Signal Generation
Based on the KNN classifications and the SuperTrend indicator, the strategy generates signals for the start of a new trend and the continuation of an existing trend.
4. Trading Logic
The strategy uses these signals to enter long or short positions. It also incorporates dynamic trailing stops for exit conditions.
Local picture
█ Trade Direction
The strategy allows traders to specify their trading direction: long, short, or both. This enables the strategy to be versatile and adapt to various market conditions.
█ Usage
ToolTips: Comprehensive tooltips are provided for each parameter to guide the user through the customization process.
Inputs: Traders can customize numerous parameters including the number of neighbors in KNN, ATR multiplier, and types of moving averages.
Plotting: The strategy also provides visual cues on the chart to indicate bullish or bearish trends.
Order Execution: Based on the generated signals, the strategy will execute buy or sell orders automatically.
█ Default Settings
The default settings are configured to offer a balanced approach suitable for most scenarios:
Initial Capital: $10,000
Default Quantity Type: 10% of equity
Commission: 0.1%
Slippage: 1
Currency: USD
These settings can be modified to suit various trading styles and asset classes.
AI SuperTrend - Strategy [presentTrading]
█ Introduction and How it is Different
The AI Supertrend Strategy is a unique hybrid approach that employs both traditional technical indicators and machine learning techniques. Unlike standard strategies that rely solely on traditional indicators or mathematical models, this strategy integrates the power of k-Nearest Neighbors (KNN), a machine learning algorithm, with the tried-and-true SuperTrend indicator. This blend aims to provide traders with more accurate, responsive, and context-aware trading signals.
*The KNN part is mainly referred from @Zeiierman.
BTCUSD 8hr performance
ETHUSD 8hr performance
█ Strategy, How it Works: Detailed Explanation
SuperTrend Calculation
Volume-Weighted Moving Average (VWMA): A VWMA of the close price is calculated based on the user-defined length (len). This serves as the central line around which the upper and lower bands are calculated.
Average True Range (ATR): ATR is calculated over a period defined by len. It measures the market's volatility.
Upper and Lower Bands: The upper band is calculated as VWMA + (factor * ATR) and the lower band as VWMA - (factor * ATR). The factor is a user-defined multiplier that decides how wide the bands should be.
KNN Algorithm
Data Collection: An array (data) is populated with recent n SuperTrend values. Corresponding labels (labels) are determined by whether the weighted moving average price (price) is greater than the weighted moving average of the SuperTrend (sT).
Distance Calculation: The absolute distance between each data point and the current SuperTrend value is calculated.
Sorting & Weighting: The distances are sorted in ascending order, and the closest k points are selected. Each point is weighted by the inverse of its distance to the current point.
Classification: A weighted sum of the labels of the k closest points is calculated. If the sum is closer to 1, the trend is predicted as bullish; if closer to 0, bearish.
Signal Generation
Start of Trend: A new bullish trend (Start_TrendUp) is considered to have started if the current trend color is bullish and the previous was not bullish. Similarly for bearish trends (Start_TrendDn).
Trend Continuation: A bullish trend (TrendUp) is considered to be continuing if the direction is negative and the KNN prediction is 1. Similarly for bearish trends (TrendDn).
Trading Logic
Long Condition: If Start_TrendUp or TrendUp is true, a long position is entered.
Short Condition: If Start_TrendDn or TrendDn is true, a short position is entered.
Exit Condition: Dynamic trailing stops are used for exits. If the trend does not continue as indicated by the KNN prediction and SuperTrend direction, an exit signal is generated.
The synergy between SuperTrend and KNN aims to filter out noise and produce more reliable trading signals. While SuperTrend provides a broad sense of the market direction, KNN refines this by predicting short-term price movements, leading to a more nuanced trading strategy.
Local picture
█ Trade Direction
The strategy allows traders to choose between taking only long positions, only short positions, or both. This is particularly useful for adapting to different market conditions.
█ Usage
ToolTips: Explains what each parameter does and how to adjust them.
Inputs: Customize values like the number of neighbors in KNN, ATR multiplier, and moving average type.
Plotting: Visual cues on the chart to indicate bullish or bearish trends.
Order Execution: Based on the generated signals, the strategy will execute buy/sell orders.
█ Default Settings
The default settings are selected to provide a balanced approach, but they can be modified for different trading styles and asset classes.
Initial Capital: $10,000
Default Quantity Type: 10% of equity
Commission: 0.1%
Slippage: 1
Currency: USD
By combining both machine learning and traditional technical analysis, this strategy offers a sophisticated and adaptive trading solution.
Sudden increase in volume [PINESCRIPTLABS]The indicator plots buying and selling histograms on the price chart, as well as graphical signals in the form of triangles to highlight buying and selling conditions. Buying conditions are based on a sudden increase in volume and oversold RSI, while selling conditions are based on a sudden increase in volume and overbought RSI.
In summary, this strategy aims to identify moments when there is a significant surge in trading volume along with overbought or oversold conditions in the RSI. These moments are considered potential signals for buying or selling in the market.
Sudden Volume Surge: It checks if the current volume is greater than a multiple of the exponential moving average of volume (EMA) calculated with a specific length (ema_length). This indicates a sudden surge in trading volume.
RSI Overbought and Oversold Levels: Two RSI values, rsi_overbought and rsi_oversold, are used as references. If the RSI value is below the rsi_oversold level, it is considered to be in oversold territory, and if the RSI value is above the rsi_overbought level, it is considered to be in overbought territory.
El indicador plotea histogramas de compra y venta en el gráfico de precios, así como señales gráficas en forma de triángulos para resaltar las condiciones de compra y venta. Las condiciones para la compra se basan en un aumento brusco de volumen y un RSI en sobreventa, mientras que las condiciones para la venta se basan en un aumento brusco de volumen y un RSI en sobrecompra.
En resumen, esta estrategia busca identificar momentos en los que haya un aumento significativo en el volumen de operaciones junto con condiciones de sobrecompra o sobreventa en el RSI. Estos momentos se consideran señales potenciales de compra o venta en el mercado.
Aumento brusco de volumen: Se verifica si el volumen actual es mayor que un múltiplo del promedio móvil exponencial del volumen (EMA) calculado con una longitud específica (ema_length). Esto indica un aumento repentino en el volumen de operaciones.
Niveles de RSI en sobrecompra y sobreventa: Se utilizan dos valores de RSI como referencia, rsi_overbought y rsi_oversold. Si el valor del RSI está por debajo del nivel rsi_oversold, se considera que está en territorio de sobreventa, y si el valor del RSI está por encima del nivel rsi_overbought, se considera que está en territorio de sobrecompra.
Price Strength Index + RSI Buy/Sell ZonesThe Price Strength Index + RSI Buy/Sell Zones indicator is a technical analysis tool designed to evaluate the strength of a financial asset's price movement by comparing it with a series of Volume Weighted Moving Averages (VWMAs) of different lengths calculated from historical data.
Hypothesis :
The core hypothesis behind this indicator is that assessing the relationship between the current price and a range of VWMAs with varying lengths can provide valuable insights into the strength and direction of a price trend. Additionally, it incorporates Relative Strength Index (RSI) conditions to further refine potential buy and sell signals.
How It Works :
Multiple VWMA Calculation: The indicator calculates multiple VWMAs, each with a different length, using historical price data and volume. These VWMAs represent weighted moving averages over various periods, helping to capture different aspects of the price trend.
Comparison with Current Price : For each of these VWMAs, the indicator compares the current bar's price with the VWMA value. This comparison is crucial in understanding how the current price relates to historical averages, shedding light on the strength and direction of the prevailing trend.
SMA of Percentage Above VWMA : The indicator calculates the Simple Moving Average (SMA) of the percentage of prices above the various VWMAs over a specified period. This moving average smoothens out the percentage data, providing a clearer trend signal.
Buy and Sell Zones : User-defined upper and lower thresholds for the percentage of prices above the VWMAs are used to define buy and sell zones. When the percentage falls below the lower threshold, it signals a potential buy zone, suggesting a weakening trend. Conversely, when it exceeds the upper threshold, it signifies a potential sell zone, indicating a strengthening trend.
RSI Integration : The RSI is calculated for the selected price source with a specified length. When the SMA of the percentage above VWMAs falls within the buy zone and the RSI is below the lower RSI threshold, it indicates an oversold condition, potentially signaling a buy opportunity. Conversely, when the SMA falls within the sell zone and the RSI is above the upper RSI threshold, it suggests an overbought condition, possibly signaling a sell opportunity.
Color Coding : The indicator employs color-coding to visually represent the buy and sell zones, as well as extreme RSI conditions. Green color denotes the buy zone, red represents the sell zone, and orange lines indicate the median and potential reversal points.
In summary, the Price Strength Index + RSI Buy/Sell Zones indicator leverages multiple VWMAs of different lengths to assess the relationship between current prices and historical moving averages. This comprehensive analysis, coupled with RSI conditions, aids traders in identifying potential buy and sell zones, as well as extreme RSI points within those zones, enhancing the evaluation of price strength and potential trend reversals.
VWMA/SMA Delta Volatility (Statistical Anomaly Detector)The "VWMA/SMA Delta Volatility (Statistical Anomaly Detector)" indicator is a tool designed to detect and visualize volatility in a financial market's price data. The indicator calculates the difference (delta) between two moving averages (VWMA/SMA) and uses statistical analysis to identify anomalies or extreme price movements. Here's a breakdown of its components:
Hypothesis:
The hypothesis behind this indicator is that extreme price movements or anomalies in the market can be detected by analyzing the difference between two moving averages and comparing it to a statistically derived normal distribution. When the MA delta (the difference between two MAs: VWMA/SMA) exceeds a certain threshold based on standard deviation and the Z-score coefficient, it may indicate increased market volatility or potential trading opportunities.
Calculation of MA Delta:
The indicator calculates the MA delta by subtracting a simple moving average (SMA) from a volume-weighted moving average (VWMA) of a selected price source. This calculation represents the difference in the market's short-term and long-term trends.
Statistical Analysis:
To detect anomalies, the indicator performs statistical analysis on the MA delta. It calculates a moving average (MA) of the MA delta and its standard deviation over a specified sample size. This MA acts as a baseline, and the standard deviation is used to measure how much the MA delta deviates from the mean.
Delta Normalization:
The MA delta, lower filter, and upper filter are normalized using a function that scales them to a specific range, typically from -100 to 100. Normalization helps in comparing these values on a consistent scale and enhances their visual representation.
Visual Representation:
The indicator visualizes the results through histograms and channels:
The histogram bars represent the normalized MA delta. Red bars indicate negative and below-lower-filter values, green bars indicate positive and above-upper-filter values, and silver bars indicate values within the normal range.
It also displays a Z-score channel, which represents the upper and lower filters after normalization. This channel helps traders identify price levels that are statistically significant and potentially indicative of market volatility.
In summary, the "MA Delta Volatility (Statistical Anomaly Detector)" indicator aims to help traders identify abnormal price movements in the market by analyzing the difference between two moving averages and applying statistical measures. It can be a valuable tool for traders looking to spot potential opportunities during periods of increased volatility or to identify potential market anomalies.
MA Directional Table"MA Directional Table" primary objective is to analyze the direction of the trend based on two Moving Averages (MA) for various timeframes and customizing the inputs to match your preferred style.
Features:
Moving Average Type: You can select which type of Moving Average to use (SMA, EMA, VWMA).
Moving Average Lengths: You can set the lengths for the short-term and long-term moving averages.
Table Position: The indicator provides a table which can be placed at the top or bottom, and to the left or right of the chart. It shows the trend status for multiple timeframes (1 min, 5 min, 15 min, 1 hour, 4 hours, 1 day).
Table Orientation: The table can be oriented either horizontally or vertically.
Price Condition: Optionally, the table color can be set to yellow if the current price deviates from the Moving Average trend and crosses MA1.
Cloud Settings: You can opt to show a cloud between the two moving averages. The color of the cloud changes based on the direction of the trend (bullish or bearish).
Extra MA: Optionally, an extra Moving Average can be plotted on the chart.
Dynamic Point of Control (POC)The Dynamic Point of Control (POC) indicator provides traders and analysts with insightful information about price levels, volume distribution, and sentiment within a specified historical range.
Instant Updates : POC recalculates with every new bar, keeping you ahead of the game.
Market Bias : Assess market sentiment through bullish volume share.
Customization : Tailor inputs to match your unique trading strategy.
Chart Presence : See POC and related data graphically on your price chart.
How to Use :
Traders can use the Dynamic POC indicator to identify Point of Control price level, understand volume distribution, and gauge market sentiment. The indicator's visual cues and customizable parameters make it a valuable tool for technical analysis and decision-making.
Volume-Weighted Kaufman's Adaptive Moving AverageThe Volume-Weighted Kaufman's Adaptive Moving Average (VW-KAMA) is a technical indicator that combines the Volume-Weighted Moving Average (VWMA) and the Kaufman's Adaptive Moving Average (KAMA) to create a more responsive and adaptable moving average.
Advantages:
Volume-Weighted: It takes into account the volume of trades, giving more weight to periods with higher trading volume, which can help filter out periods of low activity.
Adaptive: The indicator adjusts its smoothing constant based on market conditions, becoming more sensitive in trending markets and less sensitive in choppy or sideways markets.
Versatility: VW-KAMA can be used for various purposes, including trend identification, trend following, and determining potential reversal points and act as dynamic support and resistance level.
Scalp Tool
This script is primarily intended as a scalping tool.
The theory of the tool is based on the fact that the price always returns to its mean.
Elements used:
1. VWMA as a moving average. VWMA is calculated once based on source close and once based on source open.
2. the bands are not calculated like the Bollinger Band, but only a settlement is calculated for the lower bands based on the Lows and for the upper bands based on the Highs. Thus the bands do not become thicker or thinner, but remain in the same measure to the mean value above or below the price.
3. a volume filter on simple calculation of a MA with deviation. Therefore, it can be identified if a volume breakout has occurred.
4. support and resistance zones which are calculated based on the highs and lows over a certain length.
5. RSI to determine oversold and overbought zones. It also tries to capture the momentum by using a moving average (variable selectable) to filter the signals. The theory is that in an uptrend the RSI does not go below 50 and in a downtrend it does not go above 50.
However, this can be very different depending on the financial instrument.
Explanation of the signals:
The main signal in this indicator Serves for pure short-term trading and is generated purely on the basis of the bands and the RSI.
Only the first bands are taken into account.
Buy signal is generated when the price opens below the lower band 1 and closes above the lower band 1 or the RSI crosses a value of 25 from bottom to top.
Sell signal is generated when the price opens above the Upper Band 1 and closes below the Upper Band 1 or the RSI crosses a value of 75 from top to bottom.
The position should be closed when the price hits the opposite band. Alternatively, it can also be closed at the mean.
Other side signals:
1. breakouts:
The indicator includes 2 support and resistance zones, which differ only in length. For the breakout signals, the short version of the R/S is used. A signal is generated when the price breaks through the zones with increased volume. It is then assumed that the price will continue to follow the breakout.
The values of the S/R are adjustable and marked with "BK".
The value under Threshold 2 defines the volume breakout. 4 is considered as the highest value. The smaller the value, the smaller the volume must be during a breakout.
2. bounce
If the price hits a S/R (here the long variant is used with the designation "Support" or "Resistance") and makes a wick with small volume, the script assumes a bounce and generates a Sell or Buy signal accordingly.
The volume can be defined under "Threshold".
The S/R according to the designation as well.
Combined signals:
If the value of the S/R BK and the S/R is the same and the bounce logic of the S/R BK applies and an RSI signal is also generated, a signal is also plotted.
Here the idea was to get very strong signals for possible swing entries.
4. RSI Signals
The script contains two RSI.
RSI 1:
Bullish signal is generated when the set value is crossed from the bottom to the top.
Bearish signal is generated when the set value is crossed from the top to the bottom.
RSI 2:
Bullish signal is generated when the set value is crossed from the top to the bottom.
Bearish signal is generated when the set value is crossed from bottom to top.
For RSI 2 the theory is taken into account according to the description under Used elements point 5
Optical trend filter:
Also an optical trend filter was generated which fills the bands accordingly.
For this the VWMA is used and the two average values of the band.
Color definition:
Gray = Neutral
Red = Bearish
Green = Bullish
If the mean value is above the VWMA and the mean value based on the closing price is above the mean value based on the open price, the band is colored green. It is a bullish trend
If the mean value is below the VWMA and the mean value based on the closing price is below the mean value based on the open price, the band is colored red.
The band is colored gray if the mean value is correspondingly opposite. A sideways phase is assumed.
The script was developed on the basis of the pair BTCUSD in the 15 minute chart and the settings were defined accordingly on it. The display of S/R for forex pairs does not work correctly and should be hidden. The logic works anyway.
When using the script, all options should first be set accordingly to the asset and tested before trading afterwards. It applies of course also here that there is no 100% guarantee.
Also, a strong breakout leads to false signals and overheating of the indicator.
Vwma Oscillator [MMD]This line calculates the exponential moving average (EMA) of the product of the close price and volume, divided by the EMA of the volume. The EMA is calculated over a period of 4 bars.
This line calculates the difference between the value of a1 and the volume-weighted moving average (VWMA) of the close price. The VWMA is calculated over a period of 8 bars.
This line calculates a3 as twice the VWMA of a2 over a period of 8 bars, minus the VWMA of a2 over a period of 16 bars.
This line plots the value of a3 on the chart. The color of the plot is determined by the condition inside the color argument. If a3 is within 20% of its previous value (a3 ) in either direction, the color is set to silver. Otherwise, if a3 is greater than 0, the color is set to green; otherwise, it is set to red. The linewidth parameter sets the thickness of the plot, and the style parameter specifies that circles should be used to plot the values.
These lines plot two horizontal lines on the chart, one at 80% of the previous a3 value (a3 *0.8) and the other at 120% of the previous a3 value (a3 *1.2). The transp=100 parameter makes the lines transparent. The fill function is then used to fill the area between these lines with either a red or green color, depending on whether a3 at the current bar is greater or smaller than the corresponding values.
This line plots a horizontal line at a value of 0 on the chart. The color is set to gray, and the line width is set to 2.
Overall, this indicator calculates the values of a1, a2, and a3 based on moving averages and
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.
Advanced VWAP_Pullback Strategy_Trend-Template QualifierGeneral Description and Unique Features of this Script
Introducing the Advanced VWAP Momentum-Pullback Strategy (long-only) that offers several unique features:
1. Our script/strategy utilizes Mark Minervini's Trend-Template as a qualifier for identifying stocks and other financial securities in confirmed uptrends. Mark Minervini, a 2x US Investment Champion, developed the Trend-Template, which covers eight different and independent characteristics that can be adjusted and optimized in this trend-following strategy to ensure the best results. The strategy will only trigger buy-signals in case the optimized qualifiers are being met.
2. Our strategy is based on the supply/demand balance in the market, making it timeless and effective across all timeframes. Whether you are day trading using 1- or 5-min charts or swing-trading using daily charts, this strategy can be applied and works very well.
3. We have also integrated technical indicators such as the RSI and the MA / VWAP crossover into this strategy to identify low-risk pullback entries in the context of confirmed uptrends. By doing so, the risk profile of this strategy and drawdowns are being reduced to an absolute minimum.
Minervini’s Trend-Template and the ‘Stage-Analysis’ of the Markets
This strategy is a so-called 'long-only' strategy. This means that we only take long positions, short positions are not considered.
The best market environment for such strategies are periods of stable upward trends in the so-called stage 2 - uptrend.
In stable upward trends, we increase our market exposure and risk.
In sideways markets and downward trends or bear markets, we reduce our exposure very quickly or go 100% to cash and wait for the markets to recover and improve. This allows us to avoid major losses and drawdowns.
This simple rule gives us a significant advantage over most undisciplined traders and amateurs!
'The Trend is your Friend'. This is a very old but true quote.
What's behind it???
• 98% of stocks made their biggest gains in a Phase 2 upward trend.
• If a stock is in a stable uptrend, this is evidence that larger institutions are buying the stock sustainably.
• By focusing on stocks that are in a stable uptrend, the chances of profit are significantly increased.
• In a stable uptrend, investors know exactly what to expect from further price developments. This makes it possible to locate low-risk entry points.
The goal is not to buy at the lowest price – the goal is to buy at the right price!
Each stock goes through the same maturity cycle – it starts at stage 1 and ends at stage 4
Stage 1 – Neglect Phase – Consolidation
Stage 2 – Progressive Phase – Accumulation
Stage 3 – Topping Phase – Distribution
Stage 4 – Downtrend – Capitulation
This strategy focuses on identifying stocks in confirmed stage 2 uptrends. This in itself gives us an advantage over long-term investors and less professional traders.
By focusing on stocks in a stage 2 uptrend, we avoid losses in downtrends (stage 4) or less profitable consolidation phases (stages 1 and 3). We are fully invested and put our money to work for us, and we are fully invested when stocks are in their stage 2 uptrends.
But how can we use technical chart analysis to find stocks that are in a stable stage 2 uptrend?
Mark Minervini has developed the so-called 'trend template' for this purpose. This is an essential part of our JS-TechTrading pullback strategy. For our watchlists, only those individual values that meet the tough requirements of Minervini's trend template are eligible.
The Trend Template
• 200d MA increasing over a period of at least 1 month, better 4-5 months or longer
• 150d MA above 200d MA
• 50d MA above 150d MA and 200d MA
• Course above 50d MA, 150d MA and 200d MA
• Ideally, the 50d MA is increasing over at least 1 month
• Price at least 25% above the 52w low
• Price within 25% of 52w high
• High relative strength according to IBD.
NOTE: In this basic version of the script, the Trend-Template has to be used as a separate indicator on TradingView (Public Trend-Template indicators are available in TradingView – community scripts). It is recommended to only execute buy signals in case the stock or financial security is in a stage 2 uptrend, which means that the criteria of the trend-template are fulfilled.
This strategy can be applied to all timeframes from 5 min to daily.
The VWAP Momentum-Pullback Strategy
For the JS-TechTrading VWAP Momentum-Pullback Strategy, only stocks and other financial instruments that meet the selected criteria of Mark Minervini's trend template are recommended for algorithmic trading with this startegy.
A further prerequisite for generating a buy signals is that the individual value is in a short-term oversold state (RSI).
When the selling pressure is over and the continuation of the uptrend can be confirmed by the MA / VWAP crossover after reaching a price low, a buy signal is issued by this strategy.
Stop-loss limits and profit targets can be set variably. You also have the option to make use of the trailing stop exit strategy.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a technical indicator developed by Welles Wilder in 1978. The RSI is used to perform a market value analysis and identify the strength of a trend as well as overbought and oversold conditions. The indicator is calculated on a scale from 0 to 100 and shows how much an asset has risen or fallen relative to its own price in recent periods.
The RSI is calculated as the ratio of average profits to average losses over a certain period of time. A high value of the RSI indicates an overbought situation, while a low value indicates an oversold situation. Typically, a value > 70 is considered an overbought threshold and a value < 30 is considered an oversold threshold. A value above 70 signals that a single value may be overvalued and a decrease in price is likely , while a value below 30 signals that a single value may be undervalued and an increase in price is likely.
For example, let's say you're watching a stock XYZ. After a prolonged falling movement, the RSI value of this stock has fallen to 26. This means that the stock is oversold and that it is time for a potential recovery. Therefore, a trader might decide to buy this stock in the hope that it will rise again soon.
The MA / VWAP Crossover Trading Strategy
This strategy combines two popular technical indicators: the Moving Average (MA) and the Volume Weighted Average Price (VWAP). The MA VWAP crossover strategy is used to identify potential trend reversals and entry/exit points in the market.
The VWAP is calculated by taking the average price of an asset for a given period, weighted by the volume traded at each price level. The MA, on the other hand, is calculated by taking the average price of an asset over a specified number of periods. When the MA crosses above the VWAP, it suggests that buying pressure is increasing, and it may be a good time to enter a long position. When the MA crosses below the VWAP, it suggests that selling pressure is increasing, and it may be a good time to exit a long position or enter a short position.
Traders typically use the MA VWAP crossover strategy in conjunction with other technical indicators and fundamental analysis to make more informed trading decisions. As with any trading strategy, it is important to carefully consider the risks and potential rewards before making any trades.
This strategy is applicable to all timeframes and the relevant parameters for the underlying indicators (RSI and MA/VWAP) can be adjusted and optimized as needed.
Backtesting
Backtesting gives outstanding results on all timeframes and drawdowns can be reduced to a minimum level. In this example, the hourly chart for MCFT has been used.
Settings for backtesting are:
- Period from Jan 2020 until March 2023
- Starting capital 100k USD
- Position size = 25% of equity
- 0.01% commission = USD 2.50.- per Trade
- Slippage = 2 ticks
Other comments
- This strategy has been designed to identify the most promising, highest probability entries and trades for each stock or other financial security.
- The combination of the Trend-Template and the RSI qualifiers results in a highly selective strategy which only considers the most promising swing-trading entries. As a result, you will normally only find a low number of trades for each stock or other financial security per year in case you apply this strategy for the daily charts. Shorter timeframes will result in a higher number of trades / year.
- Consequently, traders need to apply this strategy for a full watchlist rather than just one financial security.
