CULTURATRADING STRATEGYThe "CULTURATRADING STRATEGY" is designed to capitalize on market trends by incorporating a combination of technical indicators that signal potential entry and exit points for trades on various assets. This strategy is not just a mere collection of indicators but a well-thought-out approach that synergizes different market signals to optimize trade decisions.
The script uses the MACD (Moving Average Convergence Divergence) to gauge momentum and trend direction, with the slope of the MACD line serving as a trigger for market entries. A positive slope suggests an upward trend and potential long entry, while a negative slope indicates a downward trend and a possible short entry.
In tandem with the MACD, the ADX (Average Directional Index) is utilized to measure the strength of the trend. An ADX value above 25 signifies a strong trend, which, when aligned with MACD signals, can validate the trade entries.
The RSI (Relative Strength Index) is another critical component, identifying overbought and oversold conditions. This strategy looks for crossovers above and below key levels (60 for overbought, 40 for oversold) to determine high-probability turning points in the market. The inclusion of a 20-period SMA (Simple Moving Average) of the RSI adds a layer to filter the signals further, allowing for the refinement of entry and exit points.
The script employs a dynamic stop-loss system, set at the lowest low of the past 20 bars for long positions and the highest high for shorts, to manage risk effectively. The strategy is configured for a $10,000 account, risking a reasonable portion of capital per trade, with a pyramid effect to allow for diversified entries from various signals. The backtesting results are based on a 5% capital allocation per trade and include a 0.08% commission. To ensure accurate backtesting, the script includes an additional percentage to account for slippage within the commission.
To provide a comprehensive understanding, the script also outputs a "volatility histogram" based on the ADX, offering insights into market volatility and helping to time the trades better.
This strategy has been backtested across different timeframes and assets, showing resilience in various market conditions. It is essential to check the 'recalculate after order filled' option due to the dynamic nature of stop-loss orders.
This script is paired with the "CULTURATRADING INDICATOR" for enhanced signal clarity, providing a holistic view of the strategy's performance. Please note that this script is for educational purposes and should not be taken as financial advice.
The "CULTURATRADING INDICATOR" is an essential tool that works in conjunction with the "CULTURATRADING STRATEGY" to provide traders with a clear visualization of the market's conditions. It enhances the strategy by offering visual cues that help interpret complex market data more intuitively.
The indicator displays key RSI levels, such as 60 for overbought conditions and 40 for oversold conditions, with a mid-level at 55 to indicate when a trend may be weakening. The colors on the RSI line change to reflect these conditions, offering a quick reference for traders: a blue color signifies an RSI above 60, indicating overbought conditions; a red color shows an RSI below 40, pointing to oversold conditions; and white represents values in between, suggesting a neutral state.
Moreover, the volatility histogram, which is part of the "CULTURATRADING INDICATOR," provides a visual representation of market volatility. The histogram changes colors based on the ADX value and the slope of the MACD line. For instance, a green histogram suggests a positive MACD slope during a strong trend, indicating potential bullish momentum. Conversely, a red histogram implies a negative MACD slope during strong trends, hinting at bearish momentum. A grey color might be used to represent periods when the trend is weak or the market is less volatile.
Together, these visual elements of the "CULTURATRADING INDICATOR" complement the strategy's signals, providing traders with an at-a-glance summary of the current market scenario, which can be particularly useful when managing multiple trades or assessing opportunities quickly.
Please remember, this script and its associated indicator are designed to serve as educational tools to assist in understanding market dynamics and are not intended as financial advice. Always conduct your own research and consider consulting a financial advisor for personalized guidance.
Oscillators
Trending RSI [ChartPrime]Trending RSI takes a new approach to RSI intended to provide all of the missing information that traditional RSI lacks. Questions such as "why does the price continue to decline even during an oversold period?" can be aided using the Trending RSI.
These types of movements are due to the market still trending and traditional RSI can not tell traders this. Trending RSI fixes this by introducing trend information back into the oscillator. By reverse engineering RSI we have been able to make a new indicator that is no longer bound between 0 and 100. Instead it provides the traditional 70 and 30 zones as bands, and 50 as a center line that still represent these zones perfectly. This transforms RSI into a centered oscillator instead of a normalized oscillator. When the market is trending our indicator represents this as the center line being below or above 0. Just like MACD the center line is colored to represent the market phases. This helps in identifying reversals more clearly by adding a layer of confluence to the already renowned RSI. We have also included a novel filtering technique that has a low lag to smoothing ratio. This is primarily used to smooth the bands by default but you can also utilize this on the RSI. Several alerts have been included to provide users with easy to configure signals.
You can use the center line as a directional filter for your trades by only picking trades in the direction of the center line. When the center line is above 0, the market is trending up. Conversely, when the center line is below 0 the market is trending down trend. Use the polarity of the center line to estimate the strength of retracements from the oversold and overbought zones. We have also included a special moving average to help you find the momentum of a move. The Binomial MA filter approximates a normal curve making it similar to a gaussian filter. We have also included standard divergences which are fully configurable in the settings. Finally, we have built this indicator to be compatible with the built in multi time frame option to allow users to freely pick the time frame they wish to use. It is worth noting that due to the limitations of the standard MTF implementation divergences will not plot as expected when using time frames outside of the charts time frame. This is standard and also affects the built in RSI.
All of the colors are fully adjustable with the option to enable or disable the glow effect. We have also designed this indicator to only display the information for plots that are enabled to reduce clutter and provide a cleaner charting experience. All alerts are built to work with the standard alert builder and do not have to be enabled or disabled inside of the indicator.
Included Alerts:
RSI Cross Over Center
RSI Cross Under Center
RSI Cross Under Upper Range
RSI Cross Over Upper Range
RSI Cross Over Lower Range
RSI Cross Under Lower Range
RSI Cross Over MA
RSI Cross Under MA
RSI Cross Over 0
RSI Cross Under 0
Center Cross Over 0
Center Cross Under 0
Center Bullish
Center Bearish
Bullish Divergence
Bearish Divergence
In wrapping up, the Trending RSI aims to enhance the conventional RSI by adding trend insights directly into the oscillator, addressing the gap that traditional RSI leaves regarding market trends. This version of RSI breaks away from the 0 to 100 range, offering bands and a center line that better represent market conditions. It includes a set of features like the Binomial MA for momentum analysis, configurable settings for divergence detection, and compatibility with multi-time frame analysis. The color customization and glow effects aim to improve visual clarity, and the inclusion of alerts is designed to streamline alert configuration. Overall, this indicator is designed to provide a more view of the markets, suitable for traders looking to incorporate trend analysis into their RSI-based strategies.
Enjoy
Rate of Change RSIIndicator Name: Rate of Change RSI
Description:
The Rate of Change (ROC) of the Relative Strength Index (RSI) is a technical indicator designed to provide insights into the momentum of an asset's price movement. It combines the Relative Strength Index (RSI), a popular momentum oscillator, with the Rate of Change (ROC) concept to assess the speed at which RSI values are changing.
How It Works:
Relative Strength Index (RSI): The RSI measures the magnitude of recent price changes to evaluate overbought or oversold conditions in an asset. It oscillates between 0 and 100, with readings above 70 typically indicating overbought conditions and readings below 30 indicating oversold conditions.
Rate of Change (ROC): The ROC calculates the percentage change in a given indicator over a specified period. In this indicator, we apply the ROC to the RSI values to determine how quickly the RSI is changing over time.
Key Features:
Acceleration and Deceleration: The ROC of RSI helps traders identify whether the momentum of the RSI is accelerating or decelerating. Positive values suggest increasing momentum, while negative values indicate decreasing momentum.
Dynamic Color Change: The color of the ROC RSI line changes dynamically based on the RSI level. When the RSI is between 0 and 40, the line color is blue, indicating potential oversold conditions. When the RSI is between 40 and 60, the line color is yellow, suggesting neutral conditions. When the RSI is above 60, the line color changes to green, indicating potential overbought conditions.
How to Use:
Acceleration: When the ROC RSI is positive and increasing while the RSI is above 60 (green), it may signal strong upward momentum.
Deceleration: Conversely, if the ROC RSI is negative and decreasing while the RSI is below 40 (blue), it may indicate weakening downward momentum.
Originality and Usefulness:
This indicator combines the RSI, a well-known momentum oscillator, with the ROC concept to provide a unique perspective on momentum dynamics. By dynamically adjusting the color of the ROC RSI line based on RSI levels, traders can quickly assess potential overbought or oversold conditions in the market.
Chart:
The chart displayed alongside this script provides a clean and easy-to-understand visualization of the ROC RSI indicator. The ROC RSI line color changes dynamically based on RSI levels, allowing traders to visually identify potential market conditions at a glance.
Dynamic Momentum Oscillator (DMO) [Angel Algo]Dynamic Momentum Oscillator (DMO)
OVERVIEW: The Dynamic Momentum Oscillator (DMO) is a technical indicator designed to measure the momentum of price movements in financial markets. It combines momentum calculation with dynamic range assessment to provide insights into potential trend reversals and overbought/oversold conditions.
DMO is different from classic momentum oscillators like the RSI or Stochastic Oscillator because it looks at the momentum in relation to how much the price is moving. This helps it give signals that better match what's happening in the market, especially when the market's volatility is changing.
HOW TO USE:
Interpretation:
Thresholds: Horizontal lines mark user-defined threshold levels for overbought (OB) and oversold (OS) conditions, aiding in identifying potential trend pullbacks and reversals.
DMO Line: The primary line on the indicator plot. It reflects momentum in relation to the dynamic price range. Positive values indicate bullish momentum, while negative values indicate bearish momentum.
Filled Area: The area between the DMO line and the zero line is filled with color to enhance visualization of momentum shifts.
Trading Signals:
Thresholds: Monitor for potential trend reversals when the DMO crosses above the overbought threshold or below the oversold threshold.
Crossovers: Look for buy signals when the DMO line crosses above the zero and sell signals when it crosses below.
Filled Area: The green color indicates bullish momentum, red indicates bearish momentum and gray color indicates neutral conditions.
Signals: Circles appear on the chart when the DMO crosses the overbought or oversold thresholds, indicating conditions for potential trend pullbacks or reversals.
SETTINGS:
Length: Adjust the length parameter to vary the number of periods considered in the momentum calculation.
Smoothing: Enable or disable smoothing of the DMO line using the provided option.
Thresholds: Customize the overbought and oversold threshold levels to suit specific market conditions and trading preferences.
Disclaimer: The DMO indicator serves as part of a comprehensive trading strategy and should not be solely relied upon for trading decisions. Past performance is not indicative of future results, and trading involves inherent risks.
Awesome Oscillator + Bars count lines + EMA LineThe indicator includes an Awesome Oscillator with 2 vertical lines at a distance of 100 and 140 bars from the last bar to determine the third Elliott wave by the maximum peak of AO in the interval from 100 to 140 bars according to Bill Williams' Profitunity strategy. Additionally, a faster EMA line is displayed that calculates the difference between 5 Period and 34 Period Exponential Moving Averages (EMA 5 - EMA 34) based on the midpoints of the bars, just like AO calculates the difference between Simple Moving Averages (SMA 5 - SMA 34).
In the indicator settings, you can change the number of bars for vertical lines and any parameters for AO and EMA - method (SMA, Smoothed SMA, EMA and others), length, source (open, high, low, close, hl2 and others).
***
Индикатор включает Awesome Oscillator с 2 вертикальными линиями на расстоянии 100 и 140 баров от последнего бара, чтобы определить третью волну Эллиота по максимальному пику AO в интервале от 100 до 140 баров по стратегии Profitunity Билла Вильямса. Дополнительно отображается более быстрая линия EMA, которая вычисляет разницу между 5 Периодной и 34 Периодной Экспоненциальными Скользящими Средними (EMA 5 - EMA 34) по средним точкам баров (hl2), точно так же, как AO вычисляет разницу между Простыми Скользящими Средними (SMA 5 - SMA 34).
В настройках индикатора вы можете изменить количество баров для вертикальных линий и любые параметры для AO и EMA – метод (SMA, Smoothed SMA, EMA и другие), длину, источник (open, high, low, close, hl2 и другие).
CVI Tops/Bottoms Detector [AstroHub]
Welcome to the realm of precision trading with the CVI Tops/Bottoms Detector by AstroHub. Crafted with a keen eye on market dynamics, this indicator stands as a reliable tool for identifying potential trend reversals and market turning points.
Key Features of the Indicator:
The CVI Tops/Bottoms Detector, developed by AstroHub, is a powerful tool designed to detect tops and bottoms in the market. Its calculations are based on sound mathematical principles, ensuring accurate identification of bullish and bearish signals. 🔍
Calculation Period and Thresholds:
Calculation Period: Adjust the "Period" parameter to tailor the indicator to different timeframes.
Thresholds: Set the "Bullish Threshold" and "Bearish Threshold" to determine the sensitivity of the indicator to potential market shifts.
CVI Calculation:
The indicator calculates the Current Volume Index (CVI) by considering the difference between the closing price and the smoothed average, normalized by volatility. This innovative approach provides a clear view of market sentiment.
Visual Signals and Alerts:
Bullish and Bearish Signals: Clearly defined signals are represented by diamond shapes on the chart, accompanied by color-coded indications.
Gradient Colors: Gradient colors add a visual dimension to the signals, making it easier to interpret market trends.
Connecting Lines: Lines connect signals, offering a visual guide for understanding the flow of the market.
Symbol Transparency:
Customize the transparency of the underlying symbol to ensure clarity in signal visualization.
User-Friendly Customization:
Flexible Coloring: Tailor the colors of bullish and bearish signals to match your preferences.
Line Colors: Adjust line colors to enhance visibility.
Alerts: Receive timely alerts when a new bullish or bearish signal is detected.
Usage Example:
Open the indicator settings.
Adjust the "Period" to match your desired timeframe.
Fine-tune the "Bullish" and "Bearish Thresholds" based on your risk tolerance.
Experiment with customizing colors and transparency to suit your visual preferences.
Alerts for Proactive Trading:
Activate alerts to stay informed about potential bullish or bearish market opportunities. 🚨
By integrating the CVI Tops/Bottoms Detector into your trading toolkit, you gain a powerful ally in navigating the dynamic landscape of financial markets. 🌐💹
Harmonic Strings and Oscillations [AstroHub] Harmonic Strings and Market Oscillations Indicator
Welcome to the exciting world of trading with the Harmonic Strings and Market Oscillations indicator, crafted using cutting-edge principles of string theory and harmonic oscillations. 🚀 This innovative indicator provides precise trading signals by analyzing market dynamics.
Unique Features of the Indicator:
Harmonic Strings and Market Oscillations stand out for its originality in applying string theory principles. The indicator's calculations are based on mathematical concepts, ensuring accurate identification of entry and exit points in the market. 🔍
Key Concepts and Calculations:
The indicator utilizes harmonic oscillation formulas, where each parameter (string length, amplitude, frequency) plays a crucial role in analyzing market fluctuations. These calculations offer precise signals for decision-making in trading operations. 📈
Application in Various Strategies:
Long-Term Investing:
Increase the "String Length" to identify long-term trends.
Example: Set "String Length" to a higher level (e.g., 200) to better identify long-term trends in stocks.
Example Usage: Long-term trend in stocks: Set "String Length" to 200 to effectively identify stable long-term trends.
Moving Market Movements:
Decrease "String Length" and increase "Frequency of Oscillations" to detect short-term movements.
Example: Set "String Length" to a lower level (e.g., 50) and increase "Frequency of Oscillations" to effectively identify short-term movements in the currency market.
Example Usage: Intraday trading on the currency market: Set "String Length" to 50 to catch short-term trends.
These variations allow flexible adjustment of the indicator according to your trading strategies and timeframes. Experiment with parameters to find the optimal combination to achieve your specific goals in financial markets. 💼
Ease of Use:
The indicator provides access to parameters such as "String Length," "Amplitude of Oscillations," "Frequency of Oscillations," and "Entry Threshold." This ensures flexibility in customization based on the trader's individual preferences.
Visual Signals and Alerts:
Use color-coded bars to highlight entry and exit points. Apply alerts for timely responses to market opportunities. 🚨
Non-Programmer Usage Example:
Open the indicator settings.
Adjust "String Length" based on your trading strategy.
Fine-tune "Amplitude" to control signal strength.
Experiment with "Frequency" to adapt to different market conditions.
By integrating various usage strategies, Harmonic Strings and Market Oscillations becomes your reliable tool for adapting to diverse market conditions and achieving success in trading. 🌐💹
ADX Oscillator @shrilssThis Indicator calculates the Average Directional Index (ADX), a popular indicator used to quantify the strength of a trend. Additionally, it computes the Positive Directional Index (+DI) and Negative Directional Index (-DI), which measure the strength of upward and downward price movements respectively.
What sets this script apart is its enhanced ADX calculations. It incorporates Moving Averages (MAs) of the +DI and -DI to offer a smoother representation of trend direction. By averaging these directional indices over a specified period, it aims to filter out noise and provide clearer signals of trend strength.
Traders have the flexibility to visualize the traditional ADX alongside the enhanced ADX oscillator. The script also highlights potential buying and selling opportunities based on crossover events between the directional indices and the ADX, helping traders identify optimal entry and exit points.
With customizable parameters such as the length of the Directional Movement (DM), ADX, and MA periods, this script empowers traders to adapt the indicator to different market conditions and timeframes.
Dynamic Momentum GaugeOverview
The Dynamic Momentum Gauge is an indicator designed to provide information and insights into the trend and momentum of a financial asset. While this indicator is not directional , it helps you know when there will be a trend, big move, or when momentum will have a run, and when you should take profits.
How It Works
This indicator calculates momentum and then removes the negative values to focus instead on when the big trend could likely happen and when it could end, or when you should enter a trade based on momentum or exit. Traders can basically use this indicator to time their market entries or exits, and align their strategies with momentum dynamics.
How To Use
As previously mentioned, this is not a directional indicator but more like a timing indicator. This indicator helps you find when the trend moves, and big moves in the markets will occur and its possibly best to exit the trades. For example, if you decide to enter a long trade if the Dynamic Momentum Gauge value is at an extreme low and another momentum indicator that you use has conditions that you would consider to long with, then this indicator is basically telling you that there isn't more space for the momentum to squeeze any longer, can only really expand from that point or stay where it currently is, but this is also a mean reverting process so it does tend to go back up from the low point.
Settings:
Length: This is the length of the momentum, by default its at 100.
Normalization Length: Length of the Normalization which ensures the the values fall within a consistent range.
ML - Momentum Index (Pivots)Building upon the innovative foundations laid by Zeiierman's Machine Learning Momentum Index (MLMI), this variation introduces a series of refinements and new features aimed at bolstering the model's predictive accuracy and responsiveness. Licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License (CC BY-NC-SA 4.0), my adaptation seeks to enhance the original by offering a more nuanced approach to momentum-based trading.
Key Features :
Pivot-Based Analysis: Shifting focus from trend crosses to pivot points, this version employs pivot bars to offer a distinct perspective on market momentum, aiding in the identification of critical reversal points.
Extended Parameter Set: By integrating additional parameters for making predictions, the model gains improved adaptability, allowing for finer tuning to match market conditions.
Dataset Size Limitation: To ensure efficiency and mitigate the risk of calculation timeouts, a cap on the dataset size has been implemented, balancing between comprehensive historical analysis and computational agility.
Enhanced Price Source Flexibility: Users can select between closing prices or (suggested) OHLC4 as the basis for calculations, tailoring the indicator to different analysis preferences and strategies.
This adaptation not only inherits the robust framework of the original MLMI but also introduces innovations to enhance its utility in diverse trading scenarios. Whether you're looking to refine your short-term trading tactics or seeking stable indicators for long-term strategies, the ML - Momentum Index (Pivots) offers a versatile tool to navigate the complexities of the market.
For a deeper understanding of the modifications and to leverage the full potential of this indicator, users are encouraged to explore the tooltips and documentation provided within the script.
The Momentum Indicator calculations have been transitioned to the MLMomentumIndex library, simplifying the process of integration. Users can now seamlessly incorporate the momentumIndexPivots function into their scripts to conduct detailed momentum analysis with ease.
GKD-C Doda Stochastic [Loxx]The Giga Kaleidoscope GKD-C Doda Stochastic is a confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ GKD-C Doda Stochastic
This script calculates a specialized indicator that first determines an Exponential Moving Average (EMA) of the closing prices over a specified slow period. It then identifies the highest and lowest values of this EMA over a certain period to normalize the data, scaling it to a 0-100 range. This normalization process is designed to highlight the relative position of the current EMA within its recent range. Finally, it applies a double smoothing technique by calculating the EMA of the normalized data first over the same slow period and then over an additional signal period. This approach emphasizes trends and potential turning points in the market by smoothing out the price data and focusing on its movement within a defined range.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, and the Average Directional Index (ADX).
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Advance Trend Pressure as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
? Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
Bollinger and Stochastic with Trailing Stop - D.M.P.This trading strategy combines Bollinger Bands and the Stochastic indicator to identify entry opportunities in oversold and overbought conditions in the market. The aim is to capitalize on price rebounds from the extremes defined by the Bollinger Bands, with the confirmation of the Stochastic to maximize the probability of success of the operations.
Indicators Used
- Bollinger Bands Used to measure volatility and define oversold and overbought levels. When the price touches or breaks through the lower band, it indicates a possible oversold condition. Similarly, when it touches or breaks through the upper band, it indicates a possible overbought condition.
- Stochastic: A momentum oscillator that compares the closing price of an asset with its price range over a certain period. Values below 20 indicate oversold, while values above 80 indicate overbought.
Strategy Logic
- Long Entry (Buy): A purchase operation is executed when the price closes below the lower Bollinger band (indicating oversold) and the Stochastic is also in the oversold zone.
- Short Entry (Sell): A sell operation is executed when the price closes above the upper Bollinger band (indicating overbought) and the Stochastic is in the overbought zone.
Scalper's Volatility Filter [QuantraSystems]Scalpers Volatility Filter
Introduction
The 𝒮𝒸𝒶𝓁𝓅𝑒𝓇'𝓈 𝒱𝑜𝓁𝒶𝓉𝒾𝓁𝒾𝓉𝓎 𝐹𝒾𝓁𝓉𝑒𝓇 (𝒮𝒱𝐹) is a sophisticated technical indicator, designed to increase the profitability of lower timeframe trading.
Due to the inherent decrease in the signal-to-noise ratio when trading on lower timeframes, it is critical to develop analysis methods to inform traders of the optimal market periods to trade - and more importantly, when you shouldn’t trade.
The 𝒮𝒱𝐹 uses a blend of volatility and momentum measurements, to signal the dominant market condition - trending or ranging.
Legend
The 𝒮𝒱𝐹 consists of a signal line that moves above and below a central zero line, serving as the indication of market regime.
When the signal line is positioned above zero, it indicates a period of elevated volatility. These periods are more profitable for trading, as an asset will experience larger price swings, and by design, trend-following indicators will give less false signals.
Conversely, when the signal line moves below zero, a low volatility or mean-reverting market regime dominates.
This distinction is critical for traders in order to align strategies with the prevailing market behaviors - leveraging trends in volatile markets and exercising caution or implementing mean-reversion systems in periods of lower volatility.
Case Study
Here we can see the indicator's unique edge in action.
Out of the four potential long entries seen on the chart - displayed via bar coloring, two would result in losses.
However, with the power of the 𝒮𝒱𝐹 a trader can effectively filter false signals by only entering momentum-trades when the signal line is above zero.
In this small sample of four trades, the 𝒮𝒱𝐹 increased the win rate from 50% to 100%
Methodology
The methodology behind the 𝒮𝒱𝐹 is based upon three components:
By calculating and contrasting two ATR’s, the immediate market momentum relative to the broader, established trend is calculated. The original method for this can be credited to the user @xinolia
A modified and smoothed ADX indicator is calculated to further assess the strength and sustainability of trends.
The ‘Linear Regression Dispersion’ measures price deviations from a fitted regression line, adding further confluence to the signals representation of market conditions.
Together, these components synthesize a robust, balanced view of market conditions, enabling traders to help align strategies with the prevailing market environment, in order to potentially increase expected value and win rates.
GKD-C Chartmill Value [Loxx]The Giga Kaleidoscope GKD-C Chartmill ValueChartmill Value is a confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ GKD-C Chartmill ValueChartmill Value
The script creates a framework for generating various moving averages, enabling users to apply these calculations to the Chartmill Value indicator, a tool for market analysis. It facilitates dynamic selection among several moving average types—each offering a unique perspective on price data—and incorporates these into the indicator's formula. The Chartmill Value indicator is further enhanced with an option to adjust its sensitivity to market volatility, leveraging a modified algorithm that considers the Average True Range (ATR) and the length of the period analyzed. This adaptability makes the Chartmill Value indicator a powerful tool for traders and analysts seeking to gauge market trends with precision, by tailoring the indicator's behavior to reflect different market conditions and trading strategies.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, and the Average Directional Index (ADX).
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Advance Trend Pressure as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
? Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
RSI Volatility Bands [QuantraSystems]RSI Volatility Bands
Introduction
The RSI Volatility Bands indicator introduces a unique approach to market analysis by combining the traditional Relative Strength Index (RSI) with dynamic, volatility adjusted deviation bands. It is designed to provide a highly customizable method of trend analysis, enabling investors to analyze potential entry and exit points in a new and profound way.
The deviation bands are calculated and drawn in a manner which allows investors to view them as areas of dynamic support and resistance.
Legend
Upper and Lower Bands - A dynamic plot of the volatility-adjusted range around the current price.
Signals - Generated when the RSI volatility bands indicate a trend shift.
Case Study
The chart highlights the occurrence of false signals, emphasizing the need for caution when the bands are contracted and market volatility is low.
Juxtaposing this, during volatile market phases as shown, the indicator can effectively adapt to strong trends. This keeps an investor in a position even through a minor drawdown in order to exploit the entire price movement.
Recommended Settings
The RSI Volatility Bands are highly customisable and can be adapted to many assets with diverse behaviors.
The calibrations used in the above screenshots are as follows:
Source = close
RSI Length = 8
RSI Smoothing MA = DEMA
Bandwidth Type = DEMA
Bandwidth Length = 24
Bandwidth Smooth = 25
Methodology
The indicator first calculates the RSI of the price data, and applies a custom moving average.
The deviation bands are then calculated based upon the absolute difference between the RSI and its moving average - providing a unique volatility insight.
The deviation bands are then adjusted with another smoothing function, providing clear visuals of the RSI’s trend within a volatility-adjusted context.
rsiVal = ta.rsi(close, rsiLength)
rsiEma = ma(rsiMA, rsiVal, bandLength)
bandwidth = ma(bandMA, math.abs(rsiVal - rsiEma), bandLength)
upperBand = ma(bandMA, rsiEma + bandwidth, smooth)
lowerBand = ma(bandMA, rsiEma - bandwidth, smooth)
long = upperBand > 50 and not (lowerBand < lowerBand and lowerBand < 50)
short= not (upperBand > 50 and not (lowerBand < lowerBand and lowerBand < 50))
By dynamically adjusting to market conditions, the RSI trend bands offer a unique perspective on market trends, and reversal zones.
Ichimoku OscillatorHello All,
This is Ichimoku Oscillator that creates different oscillator layers, calculates the trend and possible entry/exit levels by using Ichimoku Cloud features.
There are four layer:
First layer is the distance between closing price and cloud (min or max, depending on the main trend)
Second layer is the distance between Lagging and Cloud X bars ago (X: the displacement)
Third layer is the distance between Conversion and Base lines
Fourth layer is the distance between both Leadlines
If all layers are visible maning that positive according to the main trend, you can take long/short position and when main trend changed then you should close the position. so it doesn't mean you can take position when main trend changed, you need to wait for all other conditions met (all layers(
there is take profit partially option. if Conversion and base lines cross then you can take profit partially. Optionally you can take profit partially when EMA line crosses Fourth layer.
Optionally ATR (average true range) is used for Conversion and baseline for protection from whipsaws. you can use it to stay on the trend longer time.
I added options to enable/disable the alert and customize alert messages. You can change alert messages as you wish. if you use ' close ' in the alert message then you can get closing price in the alert message when the alert was triggered.
There is an option Bounce Off Support/Resistance , if there is trend and if the price bounce off Support/Resistance zone then a tiny triangle is shown.
There are many other options for coloring, alerts etc.
Some screenshots:
Main trend:
Taking/closing positions:
Example alert messages:
Bounce off:
Colors:
Colors:
Colors:
Non-colored background:
P.S. For a few months I haven't published any new script because of some health issues. hope to be healthy and create new scripts in 2024 :)
Enjoy!
F.B_Consolidation Range Identifier
The "F.B_Consolidation Range Identifier" (F.B_CRI) is an indicator aimed at identifying consolidation areas in the price chart. Here is an explanation of the logic and usage of this indicator:
Calculation of Standard Deviation
This indicator analyzes the market's volatility by considering the standard deviation of price movements over a defined period. A higher standard deviation indicates larger price movement, while a lower standard deviation suggests potential consolidation, where price movements are limited.
Derivation of Standard Deviation
To track changes in volatility, the derivative of the standard deviation is calculated. Positive derivative values indicate increasing volatility, while negative values suggest a decrease in volatility. This allows for the identification of potential consolidation phases where volatility decreases, and the market may stabilize.
Identification of Consolidation Phase
The indicator signals potential consolidation phases when the standard deviation is low and/or the derivative of the standard deviation is negative. To represent consolidation phases on the chart, the standard deviation line, background, and candles are colored red. However, it's important to note that the display is customizable and can be configured according to individual needs.
🚨 Important 🚨
The indicator only indicates whether consolidation phases exist. If the standard deviation line, background, or candles are gray, it indicates that a trend exists in general, but not whether it is bullish or bearish. It is advisable to use other analytical tools to confirm the direction of the trend.
Crypto Stablecoin Supply - Indicator [presentTrading]█ Introduction and How it is Different
The "Stablecoin Supply - Indicator" differentiates itself by focusing on the aggregate supply of major stablecoins—USDT, USDC, and DAI—rather than traditional price-based metrics. Its premise is that fluctuations in the total supply of these stablecoins can serve as leading indicators for broader market movements, offering traders a unique vantage point to anticipate shifts in market sentiment.
BTCUSD 6h for recent bull market
BTCUSD 8h
█ Strategy, How it Works: Detailed Explanation
🔶 Data Collection
The strategy begins with the collection of the closing supply for USDT, USDC, and DAI stablecoins. This data is fetched using a specified timeframe (**`tfInput`**), allowing for flexibility in analysis periods.
🔶 Supply Calculation
The individual supplies of USDT, USDC, and DAI are then aggregated to determine the total stablecoin supply within the market at any given time. This combined figure serves as the foundation for the subsequent statistical analysis.
🔶 Z-Score Computation
The heart of the indicator's strategy lies in the computation of the Z-Score, which is a statistical measure used to identify how far a data point is from the mean, relative to the standard deviation. The formula for the Z-Score is:
Z = (X - μ) / σ
Where:
- Z is the Z-Score
- X is the current total stablecoin supply (TotalStablecoinClose)
- μ (mu) is the mean of the total stablecoin supply over a specified length (len)
- σ (sigma) is the standard deviation of the total stablecoin supply over the same length
A moving average of the Z-Score (**`zScore_ma`**) is calculated over a short period (defaulted to 3) to smooth out the volatility and provide a clearer signal.
🔶 Signal Interpretation
The Z-Score itself is plotted, with its color indicating its relation to a defined threshold (0.382), serving as a direct visual cue for market sentiment. Zones are also highlighted to show when the Z-Score is within certain extreme ranges, suggesting overbought or oversold conditions.
Bull -> Bear
█ Trade Direction
- **Entry Threshold**: A Z-Score crossing above 0.382 suggests an increase in stablecoin supply relative to its historical average, potentially indicating bullish market sentiment or incoming capital flow into cryptocurrencies.
- **Exit Threshold**: Conversely, a Z-Score dropping below -0.382 may signal a reduction in stablecoin supply, hinting at bearish sentiment or capital withdrawal.
█ Usage
Traders can leverage the "Stablecoin Supply - Indicator" to gain insights into the underlying market dynamics that are not immediately apparent through price analysis alone. It is particularly useful for identifying potential shifts in market sentiment before they are reflected in price movements. By integrating this indicator with other technical analysis tools, traders can develop a more rounded and informed trading strategy.
█ Default Settings
- Timeframe Input (`tfInput`): Allows users to specify the timeframe for data collection, adding flexibility to the analysis.
- Z-Score Length (`len`): Set to 252 by default, representing the period over which the mean and standard deviation of the stablecoin supply are calculated.
- Color Coding: Uses distinct colors (green for bullish, red for bearish) to indicate the Z-Score's position relative to its thresholds, enhancing visual clarity.
- Extreme Range Fill: Highlights areas between defined high and low Z-Score thresholds with distinct colors to indicate potential overbought or oversold conditions.
By integrating considerations of stablecoin supply into the analytical framework, the "Stablecoin Supply - Indicator" offers a novel perspective on cryptocurrency market dynamics, enabling traders to make more nuanced and informed decisions.
Normalised Gaussian MACD Heikin Ashi [AlgoAlpha]🌟🚀Introducing the Normalised Gaussian MACD Heikin Ashi by AlgoAlpha !
Elevate your trading game with this multipurpose indicator, crafted to pinpoint trend continuation opportunities while highlighting volatility and oversold/overbought conditions. Whether you're embarking on your trading journey or you're a seasoned market navigator, this tool is equipped with intuitive visual cues to amplify your decision-making prowess and enrich your market analysis toolkit. Let's dive into the key features, utilization strategies, and the innovative logic underpinning this indispensable trading asset.
Key Features:
🔧 Enhanced Customization : Tailor your experience with adjustable parameters including Fast Length, Slow Length, Source, Macd Smoothing Length, Signal Smoothing, and more.
🖌️ Visual Enhancements : Opt for Heikin Ashi Candles display and choose to show or hide MACD and Signal lines for a clutter-free chart.
🌈 Color Customization : Personalize your chart with selectable primary and secondary up and down colors to suit your visual preferences.
🔔 Advanced Alert System : Stay ahead with comprehensive alert conditions for market movements, including trend reversals, bullish and bearish swings.
How to Use:
Configure the Inputs : Start by customizing the indicator’s settings to match your trading style. Adjust the length parameters, source selection, and smoothing lengths to fine-tune the indicator’s sensitivity.
Interpret the Candles and Colors : Keep an eye on the Heikin Ashi Candles (if enabled) and the color shifts within the MACD Line Candles and Histogram. These visual cues are pivotal for identifying market trends.
Analyze with Flexibility : Make use of the option to display or hide the MACD and Signal lines based on your analysis requirements. This can help in focusing on the essential information without overcrowding your chart.
Utilize Alerts for Timely Decisions : Leverage the extensive alert system to get notified about potential market movements. These alerts can help you capture the right moment to enter or exit trades.
Basic Logic:
The Normalised Gaussian MACD Heikin Ashi by AlgoAlpha integrates Gaussian filters to elevate the traditional MACD indicator's efficiency, providing a more detailed analysis of market trends and momentum. This sophisticated approach reduces noise and enhances signal speed, which is crucial for identifying momentum trading opportunities.
Gaussian Filter Implementation : The core innovation lies in applying a Gaussian filter to the input price series. This mathematical technique smooths the price data, significantly reducing market noise and making trend signals clearer and more reliable. The Gaussian filter calculates a smoothed value for each data point by weighting nearby data points, with the weights decreasing as the distance from the current data point increases.
Refined MACD Calculation : The Gaussian MACD is derived from the difference between two Gaussian smoothed moving averages (fast and slow), which are then normalized to account for market volatility. This normalization process involves dividing the difference by a measure of market range (such as the high minus the low), and multiplying by a factor (usually 100) to scale the indicator appropriately.
🔑 This script is a versatile tool designed to aid in the identification of momentum and reversals, helping traders to make informed decisions based on technical analysis. Its customization options allow for a tailored analysis experience, fitting the unique needs and strategies of each trader.
Open Interest Inflows & Outflows [LuxAlgo]The Open Interest Inflows & Outflows indicator focuses on highlighting alterations in the overall count of active contracts associated with a specific financial instrument.
The indicator also includes an oscillator highlighting the price sentiment to use in conjunction with the open interest flow sentiment and also includes a rolling correlation of the open interest flow sentiment with a user-selected source.
🔶 USAGE
Open Interest (OI) indicates the total number of active contracts, encompassing both long and short positions, for a specific financial instrument at any given moment. This key indicator helps traders and analysts assess market activity and sentiment.
An increase in open interest generally indicates new money flowing into the market, suggesting increased activity and the potential for a trending market. Conversely, a decrease in open interest indicates that traders are closing their positions, suggesting less interest in that particular contract.
Open Interest Flow Sentiment assesses the correlation between the initiation of new positions (inflows) and the closure of existing positions (outflows) for a particular instrument. Positive values suggest a prevalence of inflows, while negative values signify a prevalence of outflows.
The magnitude of the deviation from zero reflects the extent of dominance, either in inflows or outflows.
Price Sentiment estimates the relationship between the strength of bulls (buyers) and bears (sellers) on an instrument. Positive values indicate higher bull power and negative values indicate higher bear power.
The correlation feature is a key component of the indicator and helps analyze the relationship between trading volume and Open Interest changes. If volume increases along with rising Open Interest, it supports the validity of the price trend.
A divergence between price movement, volume, and Open Interest may signal potential reversals.
🔶 DETAILS
This indicator, based on Dr. Alexander Elder's acclaimed Elder-Ray concept, aids traders in evaluating the strength of both bulls and bears by delving beneath the surface of the markets. It uncovers data not immediately apparent from a superficial glance at prices. The indicator comprises two components: Bull Power and Bear Power.
Considering that the high price of any candle signifies the maximum power of buyers and the low price represents the maximum power of sellers, Elder employs the 13-period Exponential Moving Average (EMA) to depict the average consensus of price value. Bull Power assesses whether buyers can drive prices above the average consensus of value, while Bear Power assesses whether sellers can push prices below this average.
Here are the formulas for Bull Power and Bear Power:
bull_power = high - ema(close, 13)
bear_power = low - ema(close, 13)
This concept is utilized to calculate Open Interest Flow Sentiment and Price Sentiment. The Open Interest Flow Sentiment estimates the relationship between new positions (inflows) and positions being closed (outflows), providing insights into market dynamics. The Price Sentiment, on the other hand, gauges the correlation between price movements and the Elder-Ray components, aiding traders in identifying potential shifts in market sentiment and momentum.
🔶 SETTINGS
🔹Open Interest Inflows & Outflows
OI Sentiment Correlation: toggles the visibility of Open Interest correlation with a variety of sources.
Money Flow Estimates: toggles the visibility of Money Flow Estimates calculated for the last bar.
🔹Style
OI Flow Sentiment: toggles the visibility of Open Interest Flow Sentiment, along with color customization options.
Price Sentiment: toggles the visibility of Price Sentiment, along with color customization options.
Correlation Colors: color customization option for the Correlation Area.
🔹Others
Smoothing: smoothing length applicable for Open Interest Flow Sentiment and Price Sentiment.
🔶 RELATED SCRIPTS
Open-Interest-Chart
Liquidation-Estimates
Thanks to our community for recommending this script. For more conceptual scripts and related content, we welcome you to explore by visiting >>> LuxAlgo-Scripts .
Stoch + RSI Oscillator @shrilssThis script combines two powerful indicators, the Stochastic Oscillator and the Relative Strength Index (RSI), to offer traders a comprehensive view of market dynamics.
The Stochastic Oscillator, known for its effectiveness in identifying overbought and oversold conditions, is enhanced here with a smoothing mechanism to provide clearer signals. The script calculates the %K and %D lines of the Stochastic Oscillator, then applies a smoothing factor to %K, resulting in a smoother representation of price momentum.
Simultaneously, the RSI component offers insights into the strength of price movements. By comparing the average gains and losses over a specified period, it provides a measure of bullish and bearish sentiment within the market.
This script's innovation lies in its integration of these two indicators. The Stochastic Oscillator's smoothed %K line and the RSI are compared to dynamic thresholds, enabling traders to identify potential trend reversals and confirmations more effectively. When the RSI crosses above or below the Stochastic %D line, it can signal potential shifts in market momentum.
F.B_DI+ DI- Trend TrackerThe F.B_DI+ DI- Trend Tracker is an indicator developed based on Directional Movement and True Range to identify trends in the market and assess their strength. Here is the logic behind the indicator and how to use it for trading:
Direction Determination
Unlike traditional DI+ and DI- based on simple calculations, this indicator utilizes derived versions of these directional indicators. These derived versions offer a more precise measurement of price directional movements by specifically tailoring to market conditions and the chosen time frame.
Trend Strength
The derived directional indicators are generated by dividing smoothed Directional Movements by smoothed True Range and converting them into percentages. These values provide insights into the strength of the trend by considering directional movements relative to market volatility.
Identifying Trend Reversals
To capture changes in trend strength more accurately, the first derivative of DI+ and DI- is computed. A crossover of these derived versions could indicate a potential trend reversal, with a crossover of DI+ over DI- suggesting a possible uptrend and a crossover of DI- over DI+ indicating a potential downtrend.
Making Trading Decisions
Traders can use crossovers between the derived DI+ and DI- to receive signals for potential trend reversals. Additionally, changes in the color of candlesticks or background can be used as confirmation of the trend direction and its strength.
By utilizing these derived directional indicators, the F.B_DI+ DI- Trend Tracker indicator offers more precise trading signals and improved trend analysis, enabling traders to make informed trading decisions.
MACD All In One Screener [ChartPrime]INTRODUCTION
MACD All In One Screener (ChartPrime) is a multi instrument, multi timeframe indicator designed to provide traders with a comprehensive solution to monitoring the market. This indicator is designed to be easy to use and visually appealing while also being highly flexible and feature rich. Users can pick up to 10 symbols not including the chart's symbol and set up alerts for many different signals that the MACD produces. One standout feature of this indicator is its ability to display not only each symbol individually as a MACD but you can also view its chart from within this indicator. This removes the need to flip between symbols to see the price action for your basket.
On top of that we have designed this indicator to be friendly with "indicator on indicator" by providing outputs for all of the standards of price that users may want. Included is an overview section that shows all of the symbols signals symbolically over time. Additionally we have included a table for easy monitoring. This table includes the symbol, its timeframe, the current alert, and its histogram state. To make things as user friendly as possible we have also included rich error handling that tells you exactly what is wrong with your configuration.
HOW TO USE
To use this indicator, simply add it to your chart and navigate to the settings. From there select the symbols you want to monitor and the timeframes you want to use. Next you want to navigate down to the alerts section to select the what alerts you want to receive, and what symbols you want to get alerts for. Finally, you wan to create your alert using "Any alert() function call". Now your screener is all set up!
OVERVIEW OF INPUTS
View allows you to select what the indicator currently displays. You can pick from any one of the selected symbols, an overview of all of the symbols, or simply nothing. If you want to only use the table, "None" is provided so you can move the indicator into the chart panel.
View Toggle lets you pick from displaying the MACD for the selected symbol or the Price Action as a candle chart. To see your "indicator on indicator" you will have to select a symbol from the view list. There is a bug where if you select "Overview" while you are using "indicator on indicator" your added indicator will see the last symbol you viewed. To fix this, simply change the setting of your overlaid indicator and it will correct its self.
History Length is the number of historical bars to calculate over. This feature is here to prevent the indicator from breaking due to uneven historical data between the symbols.
Show Price Line toggles a dotted line that follows the current symbols closing price when "Price" is selected under the "View Toggle" dropdown.
Show Symbol Label toggles a label that displays the current symbols name and timeframe. This only impacts the single symbol view.
Overview Label Color adjusts the color of the symbol labels for both overview and single symbol view.
MA Type lets you pick what kind of moving average you want to use for the oscillator or signal. You can pick from the standard SMA or EMA.
Fast Length is a standard input for MACD. This lets you pick the period of the fast MA.
Slow Length , just like Fast Lenght, is a standard input for MACD. This lets you pick the period of the slow MA.
Signal Length is another standard input for MACD. This lets you configure the period of the signal MA.
MACD Cross Overlay Icon is a toggle to display MACD crosses when viewing a single symbol's MACD. When the MACD has a bullish cross it will plot a bullish dot, and when it has a bearish cross it will plot a bearish dot. This is purely visual.
Regular Bullish and Bearish toggles the visual display of the divergences on the single symbol view. This does not effect the indicators ability do send alerts.
Divergence Look Right adjusts the number of bars into the future to look for confirmation of a signal. This directly impacts lag but enhances stability.
Divergence Look Left adjusts the number of bars into the past to check for a signal. A longer period will filter out smaller moves
Maximum Lookback adjusts the maximum size of a divergence.
Minimum Lookback adjusts the minimum size of a divergence.
Divergence Drawings picks how you want to visualize the divergence. You can pick from displaying it as a line, a label, or both.
Enable Table toggles the overview table. When enabled it will show you the enabled symbols and their current state. From left to right: symbol name, timeframe, current alert, and histogram state.
Position picks where on the chart you want the table to be.
Text Color adjusts the text color of the table.
BG Color adjusts the background color of the table.
Frame Color adjust the frame color of the table.
Current Symbol Time Frame adjusts the timeframe of the chart's symbol.
Symbol 1 - 10 pick "Symbol's" symbol and timeframe. To use higher timeframes, the symbol's have to be the same type. You can't have a crypto and a stock using HTF at the same time as they don't have the same sessions and will result in an error. You can use unsafe mode (as described below) to potentially get around this.
Enable Symbol when enabled it will give you alerts for the symbol. This also enables the symbol in the overview. If this is disabled it won't send alerts, and it will not show up in overview, or the table.
Wait for Close enables waiting for the bar to close before printing an alert.
Alert Symbol Size picks what size you want the overview symbols to be.
Enable Cross Over 0 Alert: MACD crosses over the 0 line.
Enable Cross Under 0 Alert: MACD crosses under the 0 line.
Enable MACD Cross Bullish Alert: Bullish MACD cross.
Enable MACD Cross Bearish Alert: Bearish MACD cross.
Enable Histogram Bullish Turn Alert: MACD begins to turn bullish but hasn't crossed.
Enable Histogram Bearish Turn Alert: MACD begins to turn bearish but hasn't crossed.
Enable Histogram Bullish Continuation Alert: MACD is in a bullish cross state and it was declining but began rising again.
Enable Histogram Bearish Continuation Alert: MACD is in a bearish cross state and it was rising but began falling again.
Enable Bullish/Bearish Divergence Alert enables divergence alerts. Divergences are lagging, especially on a higher timeframe. These alerts will also tell you the time in the past when the divergence occurred.
Color Section is provided to allow for personalization of the indicator. Everything can be adjusted here.
Disable Error Checking: Only enable this if you want to bypass the built in error checking. This will enable 'Safe Requesting'. Safe Requesting will only request enabled symbols and you will not be able to view symbols that are not enabled in this mode. Only use this if you want to mix symbol types and you know it will work. (An example would be viewing stocks and SPY at the same time.)
CONCLUSION
The MACD All In One Screener (ChartPrime) is a versatile indicator designed to monitor multiple symbols across various timeframes. The flexibility in customization, from MACD settings to visual alerts and table presentations, allows users to tailor the screener to their needs and preferences. We hope you find this as useful and interesting as we do and wish you good luck in the market!
Enjoy
