Enhanced Economic Composite with Dynamic WeightEnhanced Economic Composite with Dynamic Weight
Overview of the Indicator :
The "Enhanced Economic Composite with Dynamic Weight" is a comprehensive tool that combines multiple economic indicators, technical signals, and dynamic weighting to provide insights into market and economic health. It adjusts based on current volatility and recession risk, offering a detailed view of market conditions.
What This Indicator Does :
Tracks Economic Health: Uses key economic and market indicators to assess overall market conditions.
Dynamic Weighting: Adjusts the importance of components like stock indices, gold, and bonds based on volatility (VIX) and yield curve inversion.
Technical Signals: Identifies market momentum shifts through key crossovers like the Golden Cross, Death Cross, Silver Cross, and Hospice Cross.
Recession Shading: Marks known recessions for historical context.
Economic Factors Considered :
TIP (Treasury Inflation-Protected Securities): Reflects inflation expectations.
Gold: A safe-haven asset, increases in weight during volatility or rising momentum.
US Dollar Index (DXY): Measures USD strength, fixed weight of 10%, smoothed with EMA.
Commodities (DBC): Indicates global demand; weight increases with momentum or volatility.
Volatility Index (VIX): Reflects market risk, inversely related to market confidence.
Stock Indices (S&P 500, DJIA, NASDAQ, Russell 2000): Represent market performance, with weights reduced during high volatility or negative yield spread.
Yield Spread (10Y - 2Y Treasuries): Predicts recessions; negative spread reduces stock weighting.
Credit Spread (HYG - TLT): Indicates market risk through corporate vs. government bond yields.
How and Why Factors are Weighted:
Stock Indices get more weight in stable markets (low VIX, positive yield spread), while safe-haven assets like gold and bonds gain weight in volatile markets or during yield curve inversions. This dynamic adjustment ensures the composite reflects current market sentiment.
Technical Signals:
Golden Cross: 50 EMA crossing above 200 SMA, signaling bullish momentum.
Death Cross: 50 EMA below 200 SMA, indicating bearish momentum.
Silver Cross: 21 EMA crossing above 50 EMA, plotted only if below the 200-day SMA, signaling potential upside in downtrend conditions.
Hospice Cross: 50 EMA crosses below 21 EMA, plotted only if 21 EMA is below 200 SMA, a leading bearish signal.
Recession Shading:
Recession periods like the Great Recession, Early 2000s Recession, and COVID-19 Recession are shaded to provide historical context.
Benefits of Using This Indicator:
Comprehensive Analysis: Combines economic fundamentals and technical analysis for a full market view.
Dynamic Risk Adjustment: Weights shift between growth and safe-haven assets based on volatility and recession risk.
Early Signals: The Silver Cross and Hospice Cross provide early warnings of potential market shifts.
Recession Forecasting: Helps predict downturns through the yield curve and recession indicators.
Who Can Benefit:
Traders: Identify market momentum shifts early through crossovers.
Long-term Investors: Use recession warnings and dynamic adjustments to protect portfolios.
Analysts: A holistic tool for analyzing both economic trends and market movements.
This indicator helps users navigate varying market conditions by dynamically adjusting based on economic factors and providing early technical signals for market momentum shifts.
อินดิเคเตอร์และกลยุทธ์
VATICAN BANK CARTELVATICAN BANK CARTEL - Precision Signal Detection for Buyers.
The VATICAN BANK CARTEL indicator is a highly sophisticated tool designed specifically for buyers, helping them identify key market trends and generate actionable buy signals. Utilizing advanced algorithms, this indicator employs a multi-variable detection mechanism that dynamically adapts to price movements, offering real-time insights to assist in executing profitable buy trades. This indicator is optimized solely for identifying buying opportunities, ensuring that traders are equipped to make well-timed entries and exits, without signals for shorting or selling.
The recommended settings for VATICAN BANK CARTEL indicator is as follows:-
Depth Engine = 20,30,40,50,100.
Deviation Engine = 3,5,7,15,20.
Backstep Engine = 15,17,20,25.
NOTE:- But you can also use this indicator as per your setting, whichever setting gives you best results use that setting.
Key Features:
1.Adaptive Depth, Deviation, and Backstep Inputs:
The core of this indicator is its customizable Depth Engine, Deviation Engine, and Backstep Engine parameters. These inputs allow traders to adjust the sensitivity of the trend detection algorithm based on specific market conditions:
Depth: Defines how deep the indicator scans historical price data for potential trend reversals.
Deviation: Determines the minimum required price fluctuation to confirm a market movement.
Backstep: Sets the retracement level to filter false signals and maintain the accuracy of trend detection.
2. Visual Signal Representation:
The VATICAN BANK CARTEL plots highly visible labels on the chart to mark trend reversals. These labels are customizable in terms of size and transparency, ensuring clarity in various chart environments. Traders can quickly spot buying opportunities with green labels and potential square-off points with red labels, focusing exclusively on buy-side signals.
3.Real-Time Alerts:
The indicator is equipped with real-time alert conditions to notify traders of significant buy or square-off buy signals. These alerts, which are triggered based on the indicator’s internal signal logic, ensure that traders never miss a critical market movement on the buy side.
4.Custom Label Size and Transparency:
To enhance visual flexibility, the indicator allows the user to adjust label size (from small to large) and transparency levels. This feature provides a clean, adaptable view suited for different charting styles and timeframes.
How It Works:
The VATICAN BANK CARTEL analyzes the price action using a sophisticated algorithm that considers historical low and high points, dynamically detecting directional changes. When a change in market direction is detected, the indicator plots a label at the key reversal points, helping traders confirm potential entry points:
- Buy Signal (Green): Indicates potential buying opportunities based on a trend reversal.
- Square-Off Buy Signal (Red): Marks the exit point for open buy positions, allowing traders to take profits or protect capital from potential market reversals.
Note: This indicator is exclusively designed to provide signals for buyers. It does not generate sell or short signals, making it ideal for traders focused solely on identifying optimal buying opportunities in the market.
Customizable Parameters:
- Depth Engine: Fine-tunes the historical data analysis for signal generation.
- Deviation Engine: Adjusts the minimum price change required for detecting trends.
- Backstep Engine: Controls the indicator's sensitivity to retracements, minimizing false signals.
- Labels Transparency: Adjusts the opacity of the labels, ensuring they integrate seamlessly into any chart layout.
- Buy and Sell Colors: Customizable color options for buy and square-off buy labels to match your preferred color scheme.
- Label Size: Select between five different label sizes for optimal chart visibility.
Ideal For:
This indicator is ideal for both beginner and experienced traders looking to enhance their buying strategy with a highly reliable, visual, and alert-driven tool. The VATICAN BANK CARTEL adapts to various timeframes, making it suitable for day traders, swing traders, and long-term investors alike—focused exclusively on buying opportunities.
Benefits and Applications:
1.Intraday Trading: The VATICAN BANK CARTEL indicator is particularly well-suited for intraday trading, as it provides accurate and timely "buy" and "square-off buy" signals based on the current market dynamics.
2.Trend-following Strategies: Traders who employ trend-following strategies can leverage the indicator's ability to identify the overall market direction, allowing them to align their trades with the dominant trend.
3.Swing Trading: The dynamic price tracking and signal generation capabilities of the indicator can be beneficial for swing traders, who aim to capture medium-term price movements.
Security Measures:
1. The code includes a security notice at the beginning, indicating that it is subject to the Mozilla Public License 2.0, which is a reputable open-source license.
2. The code does not appear to contain any obvious security vulnerabilities or malicious content that could compromise user data or accounts.
NOTE:- This indicator is provided under the Mozilla Public License 2.0 and is subject to its terms and conditions.
Disclaimer: The usage of VATICAN BANK CARTEL indicator might or might not contribute to your trading capital(money) profits and losses and the author is not responsible for the same.
IMPORTANT NOTICE:
While the indicator aims to provide reliable "buy" and "square-off buy" signals, it is crucial to understand that the market can be influenced by unpredictable events, such as natural disasters, political unrest, changes in monetary policies, or economic crises. These unforeseen situations may occasionally lead to false signals generated by the VATICAN BANK CARTEL indicator.
Users should exercise caution and diligence when relying on the indicator's signals, as the market's behavior can be unpredictable, and external factors may impact the accuracy of the signals. It is recommended to thoroughly backtest the indicator's performance in various market conditions and to use it as one of the many tools in a comprehensive trading strategy, rather than solely relying on its output.
Ultimately, the success of the VATICAN BANK CARTEL indicator will depend on the user's ability to adapt it to their specific trading style, market conditions, and risk management approach. Continuous monitoring, analysis, and adjustment of the indicator's settings may be necessary to maintain its effectiveness in the ever-evolving financial markets.
DEVELOPER:- yashgode9
PineScript:- version:- 5
This indicator aims to enhance trading decision-making by combining DEPTH, DEVIATION, BACKSTEP with custom signal generation, offering a comprehensive tool for traders seeking clear "buy" and "square-off buy" signals on the TradingView platform.
Adaptive Gaussian MA For Loop [BackQuant]Adaptive Gaussian MA For Loop
PLEASE Read the following carefully before applying this indicator to your trading system. Knowing the core logic behind the tools you're using allows you to integrate them into your strategy with confidence and precision.
Introducing BackQuant's Adaptive Gaussian Moving Average For Loop (AGMA FL) — a sophisticated trading indicator that merges the Gaussian Moving Average (GMA) with adaptive volatility to provide dynamic trend analysis. This unique indicator further enhances its effectiveness by utilizing a for-loop scoring mechanism to detect potential shifts in market direction. Let's dive into the components, the rationale behind them, and how this indicator can be practically applied to your trading strategies.
Understanding the Gaussian Moving Average (GMA)
The Gaussian Moving Average (GMA) is a smoothed moving average that applies Gaussian weighting to price data. Gaussian weighting gives more significance to data points near the center of the lookback window, making the GMA particularly effective at reducing noise while maintaining sensitivity to changes in price direction. In contrast to simpler moving averages like the SMA or EMA, GMA provides a more refined smoothing function, which can help traders follow the true trend in volatile markets.
In this script, the GMA is calculated over a defined Calculation Period (default 14), applying a Gaussian filter to smooth out market fluctuations and provide a clearer view of underlying trends.
Adaptive Volatility: A Dynamic Edge
The Adaptive feature in this indicator gives it the ability to adjust its sensitivity based on current market volatility. If the Adaptive option is enabled, the GMA uses a standard deviation-based volatility measure (with a default period of 20) to dynamically adjust the width of the Gaussian filter, allowing the GMA to react faster in volatile markets and more slowly in calm conditions. This dynamic nature ensures that the GMA stays relevant across different market environments.
When the Adaptive setting is disabled, the script defaults to a constant standard deviation value (default 1.0), providing a more stable but less responsive smoothing function.
Why Use Adaptive Gaussian Moving Average?
The Gaussian Moving Average already provides smoother results than standard moving averages, but by adding an adaptive component, the indicator becomes even more responsive to real-time price changes. In fast-moving or highly volatile markets, this adaptation allows traders to react quicker to emerging trends. Conversely, in quieter markets, it reduces over-sensitivity to minor fluctuations, thus lowering the risk of false signals.
For-Loop Scoring Mechanism
The heart of this indicator lies in its for-loop scoring system, which evaluates the smoothed price data (the GMA) over a specified range, comparing it to previous values. This scoring system assigns a numerical value based on whether the current GMA is higher or lower than previous values, creating a trend score.
Long Signals: These are generated when the for-loop score surpasses the Long Threshold (default set at 40), signaling that the GMA is gaining upward momentum, potentially identifying a favorable buying opportunity.
Short Signals: These are triggered when the score crosses below the Short Threshold (default set at -10), indicating that the market may be losing strength and that a selling or shorting opportunity could be emerging.
Thresholds & Customization Options
This indicator offers a high degree of flexibility, allowing you to fine-tune the settings according to your trading style and risk preferences:
Calculation Period: Adjust the lookback period for the Gaussian filter, affecting how smooth or responsive the indicator is to price changes.
Adaptive Mode: Toggle the adaptive feature on or off, allowing the GMA to dynamically adjust based on market volatility or remain consistent with a fixed standard deviation.
Volatility Settings: Control the standard deviation period for adaptive mode, fine-tuning how quickly the GMA responds to shifts in volatility.
For-Loop Settings: Modify the start and end points for the for-loop score calculation, adjusting the depth of analysis for trend signals.
Thresholds for Signals: Set custom long and short thresholds to determine when buy or sell signals should be generated.
Visualization Options: Choose to color bars based on trend direction, plot signal lines, or adjust the background color to reflect current market sentiment visually.
Trading Applications
The Adaptive Gaussian MA For Loop can be applied to a variety of trading styles and markets. Here are some key ways you can use this indicator in practice:
Trend Following: The combination of Gaussian smoothing and adaptive volatility helps traders stay on top of market trends, identifying significant momentum shifts while filtering out noise. The for-loop scoring system enhances this by providing a numerical representation of trend strength, making it easier to spot when a new trend is emerging or when an existing one is gaining strength.
Mean Reversion: For traders looking to capitalize on short-term market corrections, the adaptive nature of this indicator makes it easier to identify when price action is deviating too far from its smoothed trend, allowing for strategic entries and exits based on overbought or oversold conditions.
Swing Trading: With its ability to capture medium-term price movements while avoiding the noise of short-term fluctuations, this indicator is well-suited for swing traders who aim to profit from market reversals or short-to-mid-term trends.
Volatility Management: The adaptive feature allows the indicator to adjust dynamically in volatile markets, ensuring that it remains responsive in times of increased uncertainty while avoiding unnecessary noise in calmer periods. This makes it an effective tool for traders who want to manage risk by staying in tune with changing market conditions.
Final Thoughts
The Adaptive Gaussian MA For Loop is a powerful and flexible indicator that merges the elegance of Gaussian smoothing with the adaptability of volatility-based adjustments. By incorporating a for-loop scoring mechanism, this indicator provides traders with a comprehensive view of market trends and potential trade opportunities.
It’s important to test the settings on historical data and adapt them to your specific trading style, timeframe, and market conditions. As with any technical tool, the AGMA For Loop should be used in conjunction with other indicators and solid risk management practices for the best results.
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future.
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
Two Pole Butterworth For Loop [BackQuant]Two Pole Butterworth For Loop
PLEASE read the following carefully, as understanding the underlying concepts and logic behind the indicator is key to incorporating it into your trading system in a sound and methodical manner.
Introducing BackQuant's Two Pole Butterworth For Loop (2P BW FL) — an advanced indicator that fuses the power of the Two Pole Butterworth filter with a dynamic for-loop scoring mechanism. This unique approach is designed to extract actionable trading signals by smoothing out price data and then analyzing it using a comparative scoring method. Let's delve into how this indicator works, why it was created, and how it can be used in various trading scenarios.
Understanding the Two Pole Butterworth Filter
The Butterworth filter is a signal processing tool known for its smooth response and minimal distortion. It's often used in electronic and communication systems to filter out unwanted noise. In trading, the Butterworth filter can be applied to price data to smooth out the volatility, providing traders with a clearer view of underlying trends without the whipsaws often associated with market noise.
The Two Pole Butterworth variant further enhances this effect by applying the filter with two poles, effectively creating a sharper transition between the passband and stopband. In simple terms, this allows the filter to follow the price action more closely, reacting to changes while maintaining smoothness.
In this script, the Two Pole Butterworth filter is applied to the Calculation Source (default is set to the closing price), creating a smoothed price series that serves as the foundation for further analysis.
Why Use a Two Pole Butterworth Filter?
The Two Pole Butterworth filter is chosen for its ability to reduce lag while maintaining a smooth output. This makes it an ideal choice for traders who want to capture trends without being misled by short-term volatility or market noise. By filtering the price data, the Two Pole Butterworth enables traders to focus on the broader market movements and avoid false signals.
The For-Loop Scoring Mechanism
In addition to the Butterworth filter, this script uses a for-loop scoring system to evaluate the smoothed price data. The for-loop compares the current value of the filtered price (referred to as "subject") to previous values over a defined range (set by the start and end input). The score is calculated based on whether the subject is higher or lower than the previous points, and the cumulative score is used to determine the strength of the trend.
Long and Short Signal Logic
Long Signals: A long signal is triggered when the score surpasses the Long Threshold (default set at 40). This suggests that the price has built sufficient upward momentum, indicating a potential buying opportunity.
Short Signals: A short signal is triggered when the score crosses under the Short Threshold (default set at -10). This indicates weakening price action or a potential downtrend, signaling a possible selling or shorting opportunity.
By utilizing this scoring system, the indicator identifies moments when the price momentum is shifting, helping traders enter positions at opportune times.
Customization and Visualization Options
One of the strengths of this indicator is its flexibility. Traders can customize various settings to fit their personal trading style or adapt it to different markets and timeframes:
Calculation Periods: Adjust the lookback period for the Butterworth filter, allowing for shorter or longer smoothing depending on the desired sensitivity.
Threshold Levels: Set the long and short thresholds to define when signals should be triggered, giving you control over the balance between sensitivity and specificity.
Signal Line Width and Colors: Customize the visual presentation of the indicator on the chart, including the width of the signal line and the colors used for long and short conditions.
Candlestick and Background Colors: If desired, the indicator can color the candlesticks or the background according to the detected trend, offering additional clarity at a glance.
Trading Applications
This Two Pole Butterworth For Loop indicator is versatile and can be adapted to various market conditions and trading strategies. Here are a few use cases where this indicator shines:
Trend Following: The Butterworth filter smooths the price data, making it easier to follow trends and identify when they are gaining or losing strength. The for-loop scoring system enhances this by providing a clear indication of how strong the current trend is compared to recent history.
Mean Reversion: For traders looking to identify potential reversals, the indicator’s ability to compare the filtered price to previous values over a range of periods allows it to spot moments when the trend may be losing steam, potentially signaling a reversal.
Swing Trading: The combination of smoothing and scoring allows swing traders to capture short to medium-term price movements by filtering out the noise and focusing on significant shifts in momentum.
Risk Management: By providing clear long and short signals, this indicator helps traders manage their risk by offering well-defined entry and exit points. The smooth nature of the Butterworth filter also reduces the risk of getting caught in false signals due to market noise.
Final Thoughts
The Two Pole Butterworth For Loop indicator offers traders a powerful combination of smoothing and scoring to detect meaningful trends and shifts in price momentum. Whether you are a trend follower, swing trader, or someone looking to refine your entry and exit points, this indicator provides the tools to make more informed trading decisions.
As always, it's essential to backtest the indicator on historical data and tailor the settings to your specific trading style and market. While the Butterworth filter helps reduce noise and smooth trends, no indicator can predict the future with absolute certainty, so it should be used in conjunction with other tools and sound risk management practices.
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future.
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
Fourier For Loop [BackQuant]Fourier For Loop
PLEASE Read the following, as understanding an indicator's functionality is essential before integrating it into a trading strategy. Knowing the core logic behind each tool allows for a sound and strategic approach to trading.
Introducing BackQuant's Fourier For Loop (FFL) — a cutting-edge trading indicator that combines Fourier transforms with a for-loop scoring mechanism. This innovative approach leverages mathematical precision to extract trends and reversals in the market, helping traders make informed decisions. Let's break down the components, rationale, and potential use-cases of this indicator.
Understanding Fourier Transform in Trading
The Fourier Transform decomposes price movements into their frequency components, allowing for a detailed analysis of cyclical behavior in the market. By transforming the price data from the time domain into the frequency domain, this indicator identifies underlying patterns that traditional methods may overlook.
In this script, Fourier transforms are applied to the specified calculation source (defaulted to HLC3). The transformation yields magnitude values that can be used to score market movements over a defined range. This scoring process helps uncover long and short signals based on relative strength and trend direction.
Why Use Fourier Transforms?
Fourier Transforms excel in identifying recurring cycles and smoothing noisy data, making them ideal for fast-paced markets where price movements may be erratic. They also provide a unique perspective on market volatility, offering traders additional insights beyond standard indicators.
Calculation Logic: For-Loop Scoring Mechanism
The For Loop Scoring mechanism compares the magnitude of each transformed point in the series, summing the results to generate a score. This score forms the backbone of the signal generation system.
Long Signals: Generated when the score surpasses the defined long threshold (default set at 40). This indicates a strong bullish trend, signaling potential upward momentum.
Short Signals: Triggered when the score crosses under the short threshold (default set at -10). This suggests a bearish trend or potential downside risk.'
Thresholds & Customization
The indicator offers customizable settings to fit various trading styles:
Calculation Periods: Control how many periods the Fourier transform covers.
Long/Short Thresholds: Adjust the sensitivity of the signals to match different timeframes or risk preferences.
Visualization Options: Traders can visualize the thresholds, change the color of bars based on trend direction, and even color the background for enhanced clarity.
Trading Applications
This Fourier For Loop indicator is designed to be versatile across various market conditions and timeframes. Some of its key use-cases include:
Cycle Detection: Fourier transforms help identify recurring patterns or cycles, giving traders a head-start on market direction.
Trend Following: The for-loop scoring system helps confirm the strength of trends, allowing traders to enter positions with greater confidence.
Risk Management: With clearly defined long and short signals, traders can manage their positions effectively, minimizing exposure to false signals.
Final Note
Incorporating this indicator into your trading strategy adds a layer of mathematical precision to traditional technical analysis. Be sure to adjust the calculation start/end points and thresholds to match your specific trading style, and remember that no indicator guarantees success. Always backtest thoroughly and integrate the Fourier For Loop into a balanced trading system.
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future .
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
Multiple ATR Lines with Current Price PercentageThis indicator plots multiple lines based on the Average True Range (ATR) on the chart, helping traders identify potential support and resistance levels. Specifically, it draws three lines above the price and three lines below the price at different multiples of the ATR. Additionally, it plots a dynamic line at the current price level, which shows how much percentage of the ATR the current price has traveled from a specific point.
How it works:
ATR-Based Lines: The indicator calculates three upper and three lower levels based on the ATR of the selected period. These levels represent 1x, 2x, and 3x ATR above and below the current price.
Current Price Line: A dotted line follows the current price, displaying the percentage of the ATR that the price has moved.
Labels: Each line is labeled with its respective ATR multiple (1x ATR, 2x ATR, 3x ATR), and the current price line shows the percentage of the ATR traveled.
Use Cases:
Identifying Market Volatility: Traders can use this indicator to see how far the price has moved relative to its average volatility.
Support and Resistance Levels: The ATR lines can be treated as potential support and resistance zones, providing insight into price targets or stop-loss placement.
Dynamic Tracking: The percentage of ATR traveled helps traders understand the market momentum relative to its historical volatility.
Settings:
ATR Length: The user can adjust the length of the ATR calculation period.
ATR Multiplier: A multiplier to adjust the distance of the lines relative to the ATR.
Advantages:
Clear visualization of market volatility through ATR-based levels.
Real-time tracking of the price’s movement relative to ATR, giving traders a better understanding of price action.
Customizable settings for different trading styles.
Support Resistance ImportanceThe Support Resistance Importance indicator is designed to highlight key price levels based on the relationship between fractal occurrences and volume distribution within a given price range. By dividing the range into bins, the indicator calculates the total volume traded at each fractal level and normalizes the values for easy visualization. The normalized values represent an "importance score" for each price range, helping traders identify critical support and resistance levels where price action might react.
Key Features:
Fractal Detection:
The indicator detects Williams Fractals, which are specific price patterns representing potential market reversals. It identifies both upward fractals (potential resistance) and downward fractals (potential support).
Price Range Binning:
The price range is divided into a user-defined number of bins (default is 20). Each bin represents a segment of the total price range, allowing the indicator to bucket price action and track fractal volumes in each bin.
Volume-Based Importance Calculation:
For each bin, the indicator sums up the volume traded at the time a fractal occurred. The volumes are then normalized to reflect their relative importance.
The importance score is calculated as the relative volume in each bin, representing the potential influence of that price range. Higher scores indicate stronger support or resistance levels.
Normalization:
The volume data is normalized to allow for better comparison across bins. This normalization ensures that the highest and lowest volumes are scaled between 0 and 1 for visualization purposes. The smallest volume value is used to scale the rest, ensuring meaningful comparisons.
Visualization:
The indicator provides a table-based visualization showing the price range and the corresponding importance score for each bin.
Each bin is color-coded based on the normalized importance score, with blue or greenish shades indicating higher importance levels. The current price range is highlighted to help traders quickly identify relevant areas of interest.
Trading Utility:
Traders can use the importance scores to identify price levels where significant volume has accumulated at fractals. A higher importance score suggests a stronger likelihood of the price reacting to that level.
If a price moves towards a bin with a high score and the bins above it have much smaller values, it suggests that the price may "pump" up to the next high-scored range, similar to how price drops can occur.
Example Use Case:
Suppose the price approaches a bin with an importance score of 25, and the bins above have much smaller values. This suggests that price may break higher towards the next significant level of resistance, offering traders an opportunity to capitalize on the move by entering long positions or adjusting their stop losses.
This indicator is particularly useful for support and resistance trading, where understanding key levels of price action and volume can improve decision-making in anticipating market reactions.
Adaptive Volatility-Controlled LSMA [QuantAlgo]Adaptive Volatility-Controlled LSMA by QuantAlgo 📈💫
Introducing the Adaptive Volatility-Controlled LSMA (Least Squares Moving Average) , a powerful trend-following indicator that combines trend detection with dynamic volatility adjustments. This indicator is designed to help traders and investors identify market trends while accounting for price volatility, making it suitable for a wide range of assets and timeframes. By integrating LSMA for trend analysis and Average True Range (ATR) for volatility control, this tool provides clearer signals during both trending and volatile market conditions.
💡 Core Concept and Innovation
The Adaptive Volatility-Controlled LSMA leverages the precision of the LSMA to track market trends and combines it with the sensitivity of the ATR to account for market volatility. LSMA fits a linear regression line to price data, providing a smoothed trend line that is less reactive to short-term noise. The ATR, on the other hand, dynamically adjusts the volatility bands around the LSMA, allowing the indicator to filter out false signals and respond to significant price moves. This combination provides traders with a reliable tool to identify trend shifts while managing risk in volatile markets.
📊 Technical Breakdown and Calculations
The indicator consists of the following components:
1. Least Squares Moving Average (LSMA): The LSMA calculates a linear regression line over a defined period to smooth out price fluctuations and reveal the underlying trend. It is more reactive to recent data than traditional moving averages, allowing for quicker trend detection.
2. ATR-Based Volatility Bands: The Average True Range (ATR) measures market volatility and creates upper and lower bands around the LSMA. These bands expand and contract based on market conditions, helping traders identify when price movements are significant enough to indicate a new trend.
3. Volatility Extensions: To further account for rapid market changes, the bands are extended using additional volatility measures. This ensures that trend signals are generated when price movements exceed both the standard volatility range and the extended volatility range.
⚙️ Step-by-Step Calculation:
1. LSMA Calculation: The LSMA is computed using a least squares regression method over a user-defined length. This provides a trend line that adapts to recent price movements while smoothing out noise.
2. ATR and Volatility Bands: ATR is calculated over a user-defined length and is multiplied by a factor to create upper and lower bands around the LSMA. These bands help detect when price movements are substantial enough to signal a new trend.
3. Trend Detection: The price’s relationship to the LSMA and the volatility bands is used to determine trend direction. If the price crosses above the upper volatility band, a bullish trend is detected. Conversely, a cross below the lower band indicates a bearish trend.
✅ Customizable Inputs and Features:
The Adaptive Volatility-Controlled LSMA offers a variety of customizable options to suit different trading or investing styles:
📈 Trend Settings:
1. LSMA Length: Adjust the length of the LSMA to control its sensitivity to price changes. A shorter length reacts quickly to new data, while a longer length smooths the trend line.
2. Price Source: Choose the type of price (e.g., close, high, low) that the LSMA uses to calculate trends, allowing for different interpretations of price data.
🌊 Volatility Controls:
ATR Length and Multiplier: Adjust the length and sensitivity of the ATR to control how volatility is measured. A higher ATR multiplier widens the bands, making the trend detection less sensitive, while a lower multiplier tightens the bands, increasing sensitivity.
🎨 Visualization and Alerts:
1. Bar Coloring: Customize bar colors to visually distinguish between uptrends and downtrends.
2. Volatility Bands: Enable or disable the display of volatility bands on the chart. The bands provide visual cues about trend strength and volatility thresholds.
3. Alerts: Set alerts for when the price crosses the upper or lower volatility bands, signaling potential trend changes.
📈 Practical Applications
The Adaptive Volatility-Controlled LSMA is ideal for traders and investors looking to follow trends while accounting for market volatility. Its key use cases include:
Identifying Trend Reversals: The indicator detects when price movements break through volatility bands, signaling potential trend reversals.
Filtering Market Noise: By applying ATR-based volatility filtering, the indicator helps reduce false signals caused by short-term price fluctuations.
Managing Risk: The volatility bands adjust dynamically to account for market conditions, helping traders manage risk and improve the accuracy of their trend-following strategies.
⭐️ Summary
The Adaptive Volatility-Controlled LSMA by QuantAlgo offers a robust and flexible approach to trend detection and volatility management. Its combination of LSMA and ATR creates clearer, more reliable signals, making it a valuable tool for navigating trending and volatile markets. Whether you're detecting trend shifts or filtering market noise, this indicator provides the tools you need to enhance your trading and investing strategy.
Note: The Adaptive Volatility-Controlled LSMA is a tool to enhance market analysis. It should be used in conjunction with other analytical tools and should not be relied upon as the sole basis for trading or investment decisions. No signals or indicators constitute financial advice, and past performance is not indicative of future results.
Multi-timeframe 24 moving averages + BB+SAR+Supertrend+VWAP █ OVERVIEW
The script allows to display up to 24 moving averages ("MA"'s) across 5 timeframes plus two bands (Bollinger Bands or Supertrend or Parabolic SAR or VWAP bands) each from its own timeframe.
The main difference of this script from many similar ones is the flexibility of its settings:
- Bulk enable/disable and/or change properties of several MAs at once.
- Save 3 of your frequently used templates as presets using CSV text configurations.
█ HOW TO USE
Some use examples:
In order to "show 31, 50, 200 EMAs and 20, 100, 200 SMAs for each of 1H, 4H, D, W, M timeframes using blue for short MA, yellow for mid MA and red for long MA" use the settings as shown on a screenshot below.
In order to "Show a band of chart timeframe MA's of lengths 5, 8, 13, 21, 34, 55, 100 and 200 plus some 1H, 4H, D and W MAs. Be able to quickly switch off the band of chart tf's MAs. For chart timeframe MA's only show labels for 21, 100 and 200 EMAs". You can set TF1 and TF2 to chart's TF and set you fib MAs there and configure fixed higher timeframe MAs using TF3, TF4 and TF5 (e.g. using 1H, D and W timeframes and using 1H 800 in place of 4H 200 MA). However, quicker way may be using CSV - the syntax is very simple and intuitive, see Preset 2 as it comes in the script. You can easily switch chart tf's band of MAs by toggling on/off your chart timeframe TF's (in our example, TF1 and TF2).
The settings are either obvious or explained in tooltips.
Note 1: When using group settings and CSV presets do not forget that individual setting affected will no have any effect. So, if some setting does not work, check whether it is overridden with some group setting or a CSV preset.
Note 2: Sometimes you can notice parts of MA's hanging in the air, not lasting up to the last bar. This is not a bug as explained on this screenshot:
█ FOR DEVELOPERS
The script is a use case of my CSVParser library, which in turn uses Autotable library, both of which I hope will be quite helpful. Autotable is so powerful and comprehensive that you will hardly ever wish to use normal table functions again for complex tables.
The indicator was inspired by Pablo Limonetti's url=https://www.tradingview.com/script/nFs56VUZ/]Multi Timeframe Moving Averages and Raging @RagingRocketBull's # Multi SMA EMA WMA HMA BB (5x8 MAs Bollinger Bands) MAX MTF - RRB
Adaptive SuperTrend Oscillator [AlgoAlpha]Adaptive SuperTrend Oscillator 🤖📈
Introducing the Adaptive SuperTrend Oscillator , an innovative blend of volatility clustering and SuperTrend logic designed to identify market trends with precision! 🚀 This indicator uses K-Means clustering to dynamically adjust volatility levels, helping traders spot bullish and bearish trends. The oscillator smoothly tracks price movements, adapting to market conditions for reliable signals. Whether you're scalping or riding long-term trends, this tool has got you covered! 💹✨
🔑 Key Features:
📊 Volatility Clustering with K-Means: Segments volatility into three levels (high, medium, low) using a K-Means algorithm for precise trend detection.
📈 Normalized Oscillator : Allows for customizable smoothing and normalization, ensuring the oscillator remains within a fixed range for easy interpretation.
🔄 Heiken Ashi Candles : Optionally visualize smoothed trends with Heiken Ashi-style candlesticks to better capture market momentum.
🔔 Alert System : Get notified when key conditions like trend shifts or volatility changes occur.
🎨 Customizable Appearance : Fully customizable colors for bullish/bearish signals, along with adjustable smoothing methods and lengths.
📚 How to Use:
⭐ Add the indicator to favorites by pressing the star icon. Customize settings to your preference:
👀 Watch the chart for trend signals and reversals. The oscillator will change color when trends shift, offering visual confirmation.
🔔 Enable alerts to be notified of critical trend changes or volatility conditions
⚙️ How It Works:
This script integrates SuperTrend with volatility clustering by analyzing ATR (Average True Range) to dynamically identify high, medium, and low volatility clusters using a K-Means algorithm . The SuperTrend logic adjusts based on the assigned volatility level, creating adaptive trend signals. These signals are then smoothed and optionally normalized for clearer visual interpretation. The Heiken Ashi transformation adds an additional layer of smoothing, helping traders better identify the market's true momentum. Alerts are set to notify users of key trend shifts and volatility changes, allowing traders to react promptly.
Support and Resistance HeatmapThe "Support and Resistance Heatmap" indicator is designed to identify key support and resistance levels in the price action by using pivots and ATR (Average True Range) to define the sensitivity of zone detection. The zones are plotted as horizontal lines on the chart, representing areas where the price has shown significant interaction. The indicator features a customizable heatmap to visualize the intensity of these zones, making it a powerful tool for technical analysis.
Features:
Dynamic Support and Resistance Zones:
Identifies potential support and resistance areas based on price pivots.
Zones are defined by ATR-based thresholds, making them adaptive to market volatility.
Customization Options:
Heatmap Visualization: Toggle the heatmap on/off to view the strength of each zone.
Sensitivity Control: Modify the zone sensitivity with the ATR Multiplier to increase or decrease zone detection precision.
Confirmations: Set how many touches a level needs before it is confirmed as a zone.
Extended Zone Visualization:
Option to extend the zones for better long-term visibility.
Ability to limit the number of zones displayed to avoid clutter on the chart.
Color-Coded Zones:
Color-coded zones help differentiate between bullish (support) and bearish (resistance) levels, providing visual clarity for traders.
Heatmap Integration:
Gradient-based color changes on levels show the intensity of touches, helping traders understand which zones are more reliable.
Inputs and Settings:
1. Settings Group:
Length:
Determines the number of bars used for the pivot lookback. This directly affects how frequently new zones are formed.
Sensitivity:
Controls the sensitivity of the zone calculation using ATR (Average True Range). A higher value will result in fewer, larger zones, while a lower value increases the number of detected zones.
Confirmations:
Sets the number of price touches needed before a level is confirmed as a support/resistance zone. Lower values will result in more zones.
2. Visual Group:
Extend Zones:
Option to extend the support and resistance lines across the chart for better visibility over time.
Max Zones to Display (maxZonesToShow):
Limits the maximum number of zones shown on the chart to avoid clutter.
3. Heatmap Group:
Show Heatmap:
Toggle the heatmap display on/off. When enabled, the script visualizes the strength of the zones using color intensity.
Core Logic:
Pivot Calculation:
The script identifies support and resistance zones by using the pivotHigh and pivotLow functions. These pivots are calculated using a lookback period, which defines the number of candles to the left and right of the pivot point.
ATR-Based Threshold:
ATR (Average True Range) is used to create dynamic zones based on volatility. The ATR acts as a buffer around the identified pivot points, creating zones that are more flexible and adaptable to market conditions.
Merging Zones:
If two zones are close to each other (within a certain threshold), they are merged into a single zone. This reduces overlapping zones and gives a cleaner visual representation of significant price levels.
Confirmation Mechanism:
Each time the price touches a zone, the confirmation counter for that zone increases. The more confirmations a zone has, the more reliable it is. Zones are only displayed if they meet the required number of confirmations as specified by the user.
Color Gradient:
Zones are color-coded based on the number of confirmations. A gradient is used to visually represent the strength of each zone, with stronger zones being more vividly colored.
Heatmap Visualization:
When the heatmap is enabled, the color intensity of the zones is adjusted based on the proximity of the price to the zone and the number of touches the zone has received. This helps traders quickly identify which zones are more critical.
How to Use:
Identifying Support and Resistance Zones:
After adding the indicator to your chart, you will see horizontal lines representing key support (bullish) and resistance (bearish) levels. These zones are dynamically updated based on price action and pivots.
Adjusting Zone Sensitivity:
Use the "ATR Multiplier" to fine-tune how sensitive the indicator is to price fluctuations. A higher multiplier will reduce the number of zones, focusing on more significant levels.
Using Confirmations:
The more times a price interacts with a zone, the stronger that zone becomes. Use the "Confirmations" input to filter out weaker zones. This ensures that only zones with enough interaction (touches) are plotted.
Activating the Heatmap:
Enabling the heatmap will provide a color-coded visual representation of the strength of the zones. Zones with more price interactions will appear more vividly, helping you focus on the most significant areas.
Best Practices:
Combine with Other Indicators:
This support and resistance indicator works well when combined with other technical analysis tools, such as oscillators (e.g., RSI, MACD) or moving averages, for better trade confirmations.
Adjust Sensitivity Based on Market Conditions:
In volatile markets, you may want to increase the ATR multiplier to focus on more significant support and resistance zones. In calmer markets, decreasing the multiplier can help you spot smaller, but relevant, levels.
Use in Different Time Frames:
This indicator can be used effectively across different time frames, from intraday charts (e.g., 1-minute or 5-minute charts) to longer-term analysis on daily or weekly charts.
Look for Confluences:
Zones that overlap with other indicators, such as Fibonacci retracements or key moving averages, tend to be more reliable. Use the zones in conjunction with other forms of analysis to increase your confidence in trade setups.
Limitations and Considerations:
False Breakouts:
In highly volatile markets, there may be false breakouts where the price briefly moves through a zone without a sustained trend. Consider combining this indicator with momentum-based tools to avoid false signals.
Sensitivity to ATR Settings:
The ATR multiplier is a key component of this indicator. Adjusting it too high or too low may result in too few or too many zones, respectively. It is important to fine-tune this setting based on your specific trading style and market conditions.
Crypto Heatmap [Pinescriptlabs]🌟 Crypto Heatmap is a visual tool that enables quick and efficient visualization of price behavior and percentage changes of various cryptocurrencies.
📊 It generates a heatmap to show variations in daily closing prices, helping traders quickly identify assets with the most movement.
📈 Percentage Change Calculation: It calculates the difference between the current price and the previous day's price, updating with each ticker.
✨ It uses a dynamic approach that adjusts colors based on market movements, making it easier to detect trading opportunities.
👀 You will notice for a moment that some cells disappear; this is because the table updates with each ticker to show real-time changes.
Español:
🌟 Crypto Heatmap es una herramienta visual que permite una rápida y eficiente visualización del comportamiento de precios y cambios porcentuales de varias criptomonedas.
📊 Genera un mapa de calor para mostrar las variaciones en los precios de cierre diario, ayudando a los traders a identificar rápidamente los activos con mayor movimiento.
📈 Cálculo del cambio porcentual: Calcula la diferencia entre el precio actual y el del día anterior, actualizándose en cada ticker.
✨ Utiliza un enfoque dinámico que ajusta los colores según los movimientos del mercado, facilitando la detección de oportunidades de trading.
Aquí tienes la traducción al español:
👀 **Observarás por un momento que algunas celdas desaparecen; esto es porque la tabla se actualiza en cada ticker para mostrar el cambio en tiempo real.**
Volume Performance Table (Weekdays Only)This is a volume performance table that compares the volume from the previous trading day to the average daily volume from the previous week, month, 3-month, 6-month, and 12-month period in order to show where the rate of change of volume is contributing to the price trend.
For example, if the price trend is bullish and volume is accelerating, that is a bullish confirmation.
If the price is bearish and volume is accelerating, that is a bearish confirmation.
If the price is bullish and volume is decelerating, that is a bearish divergence.
If the price is bearish and volume is decelerating, that is a bullish divergence.
This does not include weekend trading when applied to digital assets such as cryptocurrencies.
2024 - Seasonality - Open to CloseScript Description:
This Pine Script is designed to visualise **seasonality** in the financial markets by calculating the **open-to-close percentage change** for each month of a selected asset. It creates a **heatmap** table to display the monthly performance over multiple years. The script provides detailed statistical summaries, including:
- **Average monthly percentage changes**
- **Standard deviation** of the changes
- **Percentage of months with positive returns**
The script also allows users to adjust colour intensities for positive and negative values, specify which year to start from, and skip specific months. Key metrics such as averages, standard deviations, and percentages of positive months can be toggled on or off based on user preferences. The result is a clear, visual representation of how an asset typically performs month by month, aiding in seasonality analysis.
FVG Channel [LuxAlgo]The FVG Channel indicator displays a channel constructed from the averages of unmitigated historical fair value gaps (FVG), allowing to identify trends and potential reversals in the market.
Users can control the amount of FVGs to consider for the calculation of the channels, as well as their degree of smoothness through user settings.
🔶 USAGE
The FVG Channel is constructed by averaging together recent unmitigated Bullish FVGs (contributing to the creation of the upper bands), and Bearish unmitigated FVGs (contributing to the creation of the lower bands) within a lookback determined by the user. A higher lookback will return longer-term indications from the indicator.
The channel includes 5 bands, with one upper and one lower outer extremities, as well as an inner series of values determined using the Fibonacci ratios (respectively 0.786, 0.5, 0.236) from the channel's outer extremities.
An uptrend can be identified by price holding above the inner upper band (obtained from the 0.786 ratio), this band can also provide occasional support when the price retraces to it while in an uptrend.
Breaking below the inner upper band with an unwillingness to reach above again is a clear sign of hesitation in the market and can be indicative of an upcoming consolidation or reversal.
This can directly be applied to downtrends as well, below are examples displaying both scenarios.
Uptrend Example:
Downtrend Example:
🔹 Breakout Levels
When the price mitigates all FVGs in a single direction except for 1, the indicator will display a "Breakout Level". This is the level that price will need to cross in order for all FVGs in that direction to be mitigated, because of this they can also be aptly called "Last Stand Levels".
These levels can be considered as potential support and resistance levels, however, should always be monitored for breakouts since a substantial push above or below these points would indicate strong momentum.
🔹 Signals
The indicator includes Bullish and Bearish Signals, these signals fire when all FVGs for a single direction have been mitigated and an engulfing candle occurs in the opposite direction. These are reversal signals and should be used alongside other indicators to appropriately manage risk.
Note: When all FVGs in a single direction have been mitigated, the candles will change colors accordingly.
🔶 DETAILS
The script uses a typical identification method for FVGs. Once identified, the script collects and stores the mitigation levels of the respective bullish and bearish FVGs:
For Bullish FVGs this is the bottom of the FVG.
For Bearish FVGs this is the top of the FVG.
The data is managed to only consider a specific amount of FVG mitigation levels, determined by the set "Unmitigated FVG Lookback". If an FVG is mitigated, it frees up a spot in the memory for a new FVG, however, if the memory is full, the oldest will be deleted.
The averages displayed (Channel Upper and Lower) are created from 2 calculation steps, the first step involves taking the raw average of the FVG mitigation levels, and the second step applies a simple moving average (SMA) smoothing of the precedent obtained averages.
Note: To view the mitigation levels average obtained in the first step, the "Smoothing Length" can be set to 1.
🔶 SETTINGS
Unmitigated FVG Lookback: Sets the maximum number of Unmitigated FVG mitigation levels that the script will use to calculate the channel.
Smoothing Length: Sets the smoothing length for the channel to reduce noise from the raw data.
ATR with Donchian Channels and SMAsThis script combines the Average True Range (ATR), Donchian Channels, and Simple Moving Averages (SMAs) to provide a comprehensive tool for volatility and trend analysis.
Key Components:
ATR Calculation: The ATR is used to measure market volatility. It is calculated as a moving average of the true range over a specified length, which you can customize using different smoothing methods: RMA, SMA, EMA, or WMA. ATR helps identify periods of high and low volatility, giving insights into potential breakout or consolidation phases in the market.
Donchian Channels on ATR: The Donchian Channels are calculated based on the highest and lowest values of the ATR over a user-defined period. The upper and lower bands provide a volatility range, and the middle line represents the average of the two. This can help visualize the range of market volatility and detect possible trend reversals or continuations.
SMAs on ATR: Two Simple Moving Averages (SMA) are applied to the ATR values. These SMAs act as a smoothed version of the ATR, providing additional insight into volatility trends. By adjusting the length of these SMAs, you can track short-term and long-term volatility movements, helping in decision-making for potential entries and exits.
Inputs:
ATR Length: Set the length for calculating the ATR.
Smoothing Method: Choose from RMA, SMA, EMA, or WMA for smoothing the ATR calculation.
Donchian Channel Length: Set the length for calculating the highest and lowest ATR values for Donchian Channels.
SMA Lengths: Two adjustable lengths for applying SMAs to the ATR.
Visualization:
ATR Plot: The ATR is plotted in red, allowing you to see the market's volatility at a glance.
Donchian Channels: Blue lines represent the upper and lower bands, while the green line represents the middle line of the Donchian Channels, helping you visualize the volatility range.
SMAs: Two SMAs (green and orange) are plotted to smooth out the ATR and identify trends in volatility.
Use Cases:
Breakout Detection: High ATR values breaking out of the Donchian Channels may signal increased volatility and a potential breakout.
Trend Analysis: SMAs on ATR help smooth volatility trends, aiding in determining if the market is entering a more volatile or stable period.
Stop-Loss Placement: ATR and Donchian Channels can be used to set dynamic stop-loss levels based on market volatility.
This script is versatile and can be used across different asset classes, such as stocks, forex, crypto, and commodities. It is especially useful for traders who want to incorporate volatility into their trading strategies for better risk management and trend detection.
Common Volume Spike Indicator with Price Color on SpikeIndicator Name: Common Volume Spike Indicator with Price Color on Spike
Description:
The “Common Volume Spike Indicator with Price Color on Spike” is designed to detect significant volume spikes and highlight them on the chart. It not only identifies moments when the trading volume exceeds a certain threshold but also colors the price bars based on price movement during these spikes.
Key Features:
• Volume Spike Detection: Detects volume spikes when the current volume exceeds a specified multiple of the average volume over a user-defined lookback period.
• Dynamic Volume Break: Highlights bars where the volume exceeds a threshold, dynamically calculated as a multiple of the average volume (default is 10x the average volume).
• Price Color on Volume Spike: When a volume spike occurs, bars are colored green if the price closes higher than the previous bar, and red if the price closes lower. This feature helps traders easily identify significant price movements during high-volume periods.
• Customizable Parameters:
• Threshold Multiplier: Adjust the sensitivity of volume spike detection.
• Lookback Period: Define the period over which the average volume is calculated.
• Volume Break Multiplier: Set a multiplier for the average volume to identify extreme volume breaks.
This indicator is suitable for traders who want to quickly spot critical market events driven by significant increases in volume. It helps to visualize both the volume activity and the corresponding price movement, providing an additional layer of market insight.
How to Use:
1. Green Bars: When the volume spike condition is met and the price closes higher than the previous bar, the bar is colored green.
2. Red Bars: When the volume spike condition is met and the price closes lower than the previous bar, the bar is colored red.
3. Blue Bars: Indicates a significant volume break, where the current volume exceeds a specified multiple of the average volume (default: 10x).
Ideal for intraday and swing traders who rely on volume and price action for market entries and exits. This indicator works well across different asset classes, including stocks, forex, and cryptocurrencies.
You can adjust the input parameters to fit your specific trading strategy and timeframe.
Disclaimer: This indicator is a tool to help with market analysis and should not be considered financial advice. Always perform your own due diligence before making any trading decisions.
This description outlines the key functionality and how the indicator can benefit traders on TradingView.
Fed Net LiquidityNet Liquidity = Federal Reserve Total Assets - Treasury General Account (TGA) - Reverse Repurchase Agreements (RRP) Balance
1. Federal Reserve Total Assets: This is the sum of everything the Fed owns, like government bonds and mortgage-backed securities. You can snag this data from the Fed’s weekly balance sheet report.
2. Treasury General Account (TGA): Think of this as the U.S. government’s checking account at the Fed. When the TGA balance goes up, it means the government is pulling liquidity out of the market, and vice versa.
3. Reverse Repurchase Agreements (RRP) Balance: This represents the liquidity the Fed absorbs from the market through reverse repo operations. When financial institutions park money in the Fed’s RRP account, there’s less cash available in the market.
Why Use Net Liquidity?
Net liquidity is seen as a key indicator of the actual amount of money available in the market. It helps gauge the overall liquidity conditions that can influence financial markets.
Where to Find the Data:
1. Federal Reserve Total Assets: You can find this in the Fed’s weekly balance sheet (the H.4.1 report). Here’s the link: Federal Reserve Statistical Release - H.4.1.
Steps to Calculate Net Liquidity Yourself:
1. Get the Fed’s Total Assets: Look up the latest H.4.1 report and jot down the total assets figure.
2. Find the TGA Balance: Head over to the U.S. Treasury’s Daily Treasury Statement to locate the “Treasury General Account” balance.
3. Get the RRP Balance: You can find this number in the H.4.1 report or on the New York Fed’s website under “Reverse Repurchase Agreements.”
4. Do the Math: Simply subtract the TGA and RRP balances from the Fed’s total assets—that gives you the net liquidity.
Risk RewardThe Risk Reward indicator, developed by OmegaTools, is a versatile technical tool designed to help traders visualize and evaluate potential reward and risk levels in their trades. By comparing recent price action against moving averages and volatility deviations, it calculates a range-weighted assessment of upside reward and downside risk. It provides a clear, color-coded visual representation of these potential ranges, along with critical support and resistance levels to aid in trade decision-making. This indicator is ideal for traders seeking to optimize their risk-reward ratio and make informed trade management decisions.
Features
Reward and Risk Visualization: Provides a histogram showing the relative potential of upside reward versus downside risk based on current price action.
Dynamic Support and Resistance Levels: Calculates and plots key price levels based on extreme of historical volatility, helping traders to identify important price zones.
Trade Size Customization: Users can adjust the trade size, and the indicator will calculate and display the estimated risk and reward in monetary terms based on the contract value.
Adaptive Volatility Extensions: Automatically adjusts extension lines based on volume, helping traders anticipate future price ranges and potential breakouts or breakdowns.
Customizable Visuals: Allows users to personalize the color scheme for bullish and bearish scenarios, making the chart more intuitive and user-friendly.
User Guide
Trade Size (size): Adjust the trade size in units (default is 1). This parameter impacts the risk and reward calculation shown in the summary table.
Length (lnt): Set the length for the exponential moving average (EMA) and the highest/lowest price calculations. This length determines the sensitivity of the indicator.
Different Visual (down): A boolean input to adjust the method for calculating downside risk. When set to true, it uses a different visual scheme.
Bullish Color (upc): Customize the color of the bullish (upside) histogram and support levels.
Bearish Color (dnc): Customize the color of the bearish (downside) histogram and resistance levels.
Plots
First Probability: Displays a histogram representing the higher value between reward and risk. It is colored according to whether the upside or downside is greater, providing a clear signal for potential trade direction.
Second Probability: A secondary histogram plot that visualizes the lower value between reward and risk, offering an additional perspective on the trade’s risk-reward balance.
Low Level/High Level: Displays dynamic support and resistance levels based on historical price data and volatility deviations.
Extension Lines: Visualize potential future price levels using volatility-adjusted projections. These lines help traders anticipate where price could move based on current conditions.
On-Chart Labels and Risk-Reward Table:
Risk and Reward Calculations: The indicator calculates the monetary value of downside risk and upside reward based on the provided trade size, volatility measures, and price movements.
Risk/Reward Table: Displayed directly on the chart, showing the downside risk and upside reward in easy-to-understand numerical values. This helps traders quickly assess the feasibility of a trade.
How It Works:
Moving Average Comparison: The indicator first calculates the 21-period (default) exponential moving average (EMA). It then compares the current price against this moving average to determine whether the market is in a bullish or bearish phase.
Deviation Calculation: It calculates the average deviation between the price and the EMA for both bullish and bearish movements, which is used to establish dynamic support and resistance levels.
Risk-Reward Calculation: Based on the highest and lowest price levels over the set period and the calculated deviations, it determines the potential upside reward and downside risk. The reward is calculated as the distance between the current price and the upper resistance levels, while the risk is determined as the distance to the lower support levels.
Visual Representation
The indicator plots histograms representing the relative magnitude of potential reward and risk.
Support and resistance levels are dynamically plotted on the chart using circles and lines, helping traders easily spot key areas of interest.
Extension lines are drawn to visualize potential future price levels based on current volatility.
Risk/Reward Table: This feature displays the calculated monetary risk and reward based on the trade size. It updates dynamically with price changes, offering a constant reference point for traders to evaluate their trade setup.
Practical Application
Identify Entry Points: Use the dynamic support and resistance levels to identify ideal trade entry points. The histogram helps determine whether the potential reward justifies the risk.
Risk Management: The calculated downside risk provides traders with an objective view of where to place stop-loss levels, while the upside reward aids in setting profit targets.
Trade Execution: By visually assessing whether reward outweighs risk, traders can make more informed decisions on trade execution, with the risk-reward ratio clearly displayed on the chart.
Best Practices:
Use Alongside Other Indicators: While this indicator offers a powerful standalone tool for assessing risk and reward, it works best when combined with other trend or momentum indicators for confirmation.
Adjust Inputs Based on Market Conditions: Adjust the length and trade size inputs depending on the asset being traded and the time horizon, as different assets may require different sensitivity settings.
RSI 30-50-70 moving averageDescription:
The RSI 30-50-70 Moving Average indicator plots three distinct moving averages based on different RSI ranges (30%, 50%, and 70%). Each moving average corresponds to different market conditions and provides potential entry and exit signals. Here's how it works:
• RSI_30 Range (25%-35%): The moving average of closing prices when the RSI is between 25% and 35%, representing potential oversold conditions.
• RSI_50 Range (45%-55%): The moving average of closing prices when the RSI is between 45% and 55%, providing a balanced perspective for trend-following strategies.
• RSI_70 Range (65%-75%): The moving average of closing prices when the RSI is between 65% and 75%, representing potential overbought conditions.
This indicator offers flexibility, as users can adjust key parameters such as RSI ranges, periods, and time frames to fine-tune the signals for their trading strategies.
How it Works:
Like traditional moving averages, the RSI 30-50-70 Moving Averages can highlight dynamic levels of support and resistance. They offer additional insight by focusing on specific RSI ranges, providing early signals for trend reversals or continuation. The default settings can be used across various assets but should be optimized via backtesting.
Default Settings:
• RSI_30: 25% to 35% (Oversold Zone, yellow line)
• RSI_50: 45% to 55% (Neutral/Trend Zone, green line)
• RSI_70: 65% to 75% (Overbought Zone, red line)
• RSI Period: 14
Buy Conditions:
• Use the 5- or 15-minute time frame.
• Wait for the price to move below the RSI_30 line, indicating potential oversold conditions.
• Enter a buy order when the price closes above the RSI_30 line, signaling a recovery from the oversold zone.
• For a more conservative approach, use the RSI_50 line as the buy signal to confirm a trend reversal.
• Important: Before entering, ensure that the RSI_30 moving average has flattened or started to level off, signaling that the oversold momentum has slowed.
Sell Conditions:
• Use the 5- or 15-minute time frame.
• Wait for the price to close above the RSI_70 line, indicating potential overbought conditions.
• Enter a sell order when the price closes below the RSI_70 line, signaling a decline from the overbought zone.
• Important: Similar to buying, wait for the RSI_70 moving average to flatten or level off before selling, indicating the overbought conditions are stalling.
Key Features:
1. Dynamic Range Customization: The indicator allows users to modify the RSI ranges and periods, tailoring the moving averages to fit different market conditions or asset classes.
2. Trend-Following and Reversal Signals: The RSI 30-50-70 moving averages provide both reversal and trend-following signals, making it a versatile tool for short-term traders.
3. Visual Representation of Market Strength: By plotting moving averages based on RSI levels, traders can visually interpret the market’s strength and potential turning points.
4. Risk Management: The built-in flexibility allows traders to choose lower-risk entries by adjusting which RSI level (e.g., RSI_30 vs. RSI_50) they rely on for signals.
Practical Use:
Different assets respond uniquely to RSI-based moving averages, so it's recommended to backtest and adjust ranges for specific instruments. For example, volatile assets may require wider RSI ranges, while more stable assets could benefit from tighter ranges.
Checking for Buy conditions:
1st: Wait for current price to go below the RSI_30 (yellow line)
2nd: Wait and observe for bullish divergence
3rd: RSI_30 has flattened indicating potential gain of momentum after a bullish divergence.
4th: Enter a buy order when the price closed above the RSI_30, preferably when a green candle appeared.
Breakout and Breakdown Indicator with RetestsThis indicator is designed to help traders identify high-probability breakout and breakdown points based on the first 5 minutes of market activity (9:30 am to 9:35 am). It works effectively on both the 1-minute and 5-minute timeframes, making it ideal for day traders and scalpers.
This indicator is a better indicator of my previous 5-Minute Opening Range Breakout indicator.
Key Features:
Dynamic Support and Resistance Lines: Automatically plots the highest and lowest price levels from 9:30 am to 9:35 am, providing essential support and resistance zones.
Breakout/Breakdown Detection: Identifies and marks successful breakout and breakdown points only after a confirmed retest, ensuring more accurate signals.
Visual Markers: Uses customizable green diamonds for successful breakouts and red diamonds for successful breakdowns, allowing easy identification on the chart.
Customization Options:
Change Colors: You can personalize the color of the breakout and breakdown markers, the label text, and the lines drawn from the 9:30 am to 9:35 am window.
Adapt to Your Chart: Adjust the indicator to match your preferred charting theme, ensuring it blends seamlessly with your trading setup.
How It Works:
Plots Key Levels: Identifies the highest and lowest prices during the first 5 minutes of trading (9:30 am to 9:35 am) and plots them on the chart.
Monitors Retests: Waits for a retest of these levels before confirming a breakout or breakdown.
Labels Breakouts/Breakdowns: After a retest, successful breakouts are marked with green diamonds and "Breakout" text, while breakdowns are marked with red diamonds and "Breakdown" text.
Why Use This Indicator?
Avoid False Signals: The retest requirement helps filter out false breakouts and breakdowns, offering more reliable trading signals.
Works Across Timeframes: Suitable for both 1-minute and 5-minute charts, allowing flexibility for different trading styles.
Some what Customizable: Adjust colors to fit your charting preferences and enhance visual clarity.
Recommended Use: Combine this indicator with other technical analysis tools, such as volume, candlestick patterns, or moving averages, for more informed trading decisions.
Relative PPP for USDBRLThis indicator calculates the USDBRL exchange rate using the Relative Purchasing Power Parity method, which considers that the variation in the exchange rate is equal to the variation in inflation in Brazil minus the variation in inflation in the US. It is derived from the Law of One Price, which states that an identical good should have the same price in different markets when adjusted for exchange rates, assuming the absence of arbitrage barriers such as transaction costs or trade restrictions.
The indicator is calculated starting from June 1994, at the launch of the Real Plan, which equalized the value of the Brazilian Real and the US Dollar at that time. This indicator is useful for providing an idea of the long-term trend of the Dollar exchange rate (months or years), acting similarly to a moving average, around which the exchange rate gravitates.
It's useful for analysts who have to forecast the USDBRL in the long term.
US Recessions based on James Hamilton's JHDUSRGDPBRThis simple script uses James Hamilton's JHDUSRGDPBR indicator to colour areas representing recession periods in the US. Best used in conjunction with other macroeconomics indicators, like –as in the example– unemployment rates
