Composite Oscillation Indicator Based on MACD and OthersThis indicator combines various technical analysis tools to create a composite oscillator that aims to capture multiple aspects of market behavior. Here's a breakdown of its components:
* Individual RSIs (xxoo1-xxoo15): The code calculates the RSI (Relative Strength Index) of numerous indicators, including volume-based indicators (NVI, PVI, OBV, etc.), price-based indicators (CCI, CMO, etc.), and moving averages (WMA, ALMA, etc.). It also includes the RSI of the MACD histogram (xxoo14).
* Composite RSI (xxoojht): The individual RSIs are then averaged to create a composite RSI, aiming to provide a more comprehensive view of market momentum and potential turning points.
* MACD Line RSI (xxoo14): The RSI of the MACD histogram incorporates the momentum aspect of the MACD indicator into the composite measure.
* Double EMA (co, coo): The code employs two Exponential Moving Averages (EMAs) of the composite RSI, with different lengths (9 and 18 periods).
* Difference (jo): The difference between the two EMAs (co and coo) is calculated, aiming to capture the rate of change in the composite RSI.
* Smoothed Difference (xxp): The difference (jo) is further smoothed using another EMA (9 periods) to reduce noise and enhance the signal.
* RSI of Smoothed Difference (cco): Finally, the RSI is applied to the smoothed difference (xxp) to create the core output of the indicator.
Market Applications and Trading Strategies:
* Overbought/Oversold: The indicator's central line (plotted at 50) acts as a reference for overbought/oversold conditions. Values above 50 suggest potential overbought zones, while values below 50 indicate oversold zones.
* Crossovers and Divergences: Crossovers of the cco line above or below its previous bar's value can signal potential trend changes. Divergences between the cco line and price action can also provide insights into potential trend reversals.
* Emoji Markers: The code adds emoji markers ("" for bullish and "" for bearish) based on the crossover direction of the cco line. These can provide a quick visual indication of potential trend shifts.
* Colored Fill: The area between the composite RSI line (xxoojht) and the central line (50) is filled with color to visually represent the prevailing market sentiment (green for above 50, red for below 50).
Trading Strategies (Examples):
* Long Entry: Consider a long entry (buying) signal when the cco line crosses above its previous bar's value and the composite RSI (xxoojht) is below 50, suggesting a potential reversal from oversold conditions.
* Short Entry: Conversely, consider a short entry (selling) signal when the cco line crosses below its previous bar's value and the composite RSI (xxoojht) is above 50, suggesting a potential reversal from overbought conditions.
* Confirmation: Always combine the indicator's signals with other technical analysis tools and price action confirmation for better trade validation.
Additional Notes:
* The indicator offers a complex combination of multiple indicators. Consider testing and optimizing the parameters (EMAs, RSI periods) to suit your trading style and market conditions.
* Backtesting with historical data can help assess the indicator's effectiveness and identify potential strengths and weaknesses in different market environments.
* Remember that no single indicator is perfect, and the cco indicator should be used in conjunction with other forms of analysis to make informed trading decisions.
By understanding the logic behind this composite oscillator and its potential applications, you can incorporate it into your trading strategy to potentially identify trends, gauge market sentiment, and generate trading signals.
การวิเคราะห์แนวโน้ม
Supertrend EMA & KNNSupertrend EMA & KNN
The Supertrend EMA indicator cuts through the noise to deliver clear trend signals.
This tool is built using the good old Exponential Moving Averages (EMAs) with a novel of machine learning; KNN (K Nearest Neighbors) breakout detection method.
Key Features:
Effortless Trend Identification: Supertrend EMA simplifies trend analysis by automatically displaying a color-coded EMA. Green indicates an uptrend, red signifies a downtrend, and the absence of color suggests a potential range.
Dynamic Breakout Detection: Unlike traditional EMAs, Supertrend EMA incorporates a KNN-based approach to identify breakouts. This allows for faster color changes compared to standard EMAs, offering a more dynamic picture of the trend.
Customizable Parameters: Fine-tune the indicator to your trading style. Adjust the EMA length for trend smoothing, KNN lookback window for breakout sensitivity, and breakout threshold for filtering noise.
A Glimpse Under the Hood:
Dual EMA Power: The indicator utilizes two EMAs. A longer EMA (controlled by the "EMA Length" parameter) provides a smooth trend direction, while a shorter EMA (controlled by the "Short EMA Length" parameter) triggers color changes, aiming for faster response to breakouts.
KNN Breakout Detection: This innovative feature analyzes price action over a user-defined lookback period (controlled by the "KNN Lookback Length" parameter) to identify potential breakouts. If the price surpasses a user-defined threshold (controlled by the "Breakout Threshold" parameter) above the recent highs, a green color is triggered, signaling a potential uptrend. Conversely, a breakdown below the recent lows triggers a red color, indicating a potential downtrend.
Trading with Supertrend EMA:
Ride the Trend: When the indicator displays green, look for long (buy) opportunities, especially when confirmed by bullish price action patterns on lower timeframes. Conversely, red suggests potential shorting (sell) opportunities, again confirmed by bearish price action on lower timeframes.
Embrace Clarity: The color-coded EMA provides a clear visual representation of the trend, allowing you to focus on price action and refine your entry and exit strategies.
A Word of Caution:
While Supertrend EMA offers faster color changes than traditional EMAs, it's important to acknowledge a slight inherent lag. Breakout detection relies on historical data, and there may be a brief delay before the color reflects a new trend.
To achieve optimal results, consider:
Complementary Tools: Combine Supertrend EMA with other indicators or price action analysis for additional confirmation before entering trades.
Solid Risk Management: Always practice sound risk management strategies such as using stop-loss orders to limit potential losses.
Supertrend EMA is a powerful tool designed to simplify trend identification and enhance your trading experience. However, remember, no single indicator guarantees success. Use it with a comprehensive trading strategy and disciplined risk management for optimal results.
Disclaimer:
While the Supertrend EMA indicator can be a valuable tool for identifying potential trend changes, it's important to note that it's not infallible. Market conditions can be highly dynamic, and indicators may sometimes provide false signals. Therefore, it's crucial to use this indicator in conjunction with other technical analysis tools and sound risk management practices. Always conduct thorough research and consider consulting with a financial advisor before making any investment decisions.
Power Core MAThe Power Core MA indicator is a powerful tool designed to identify the most significant moving average (MA) in a given price chart. This indicator analyzes a wide range of moving averages, from 50 to 400 periods, to determine which one has the strongest influence on the current price action.
The blue line plotted on the chart represents the "Current Core MA," which is the moving average that is most closely aligned with other nearby moving averages. This line indicates the current trend and potential support or resistance levels.
The table displayed on the chart provides two important pieces of information. The "Current Core MA" value shows the length of the moving average that is currently most influential. The "Historical Core MA" value represents the average length of the most influential moving averages over time.
This indicator is particularly useful for traders and analysts who want to identify the most relevant moving average for their analysis. By focusing on the moving average that has the strongest historical significance, users can make more informed decisions about trend direction, support and resistance levels, and potential entry or exit points.
The Power Core MA is an excellent tool for those interested in finding the strongest moving average in the price history. It simplifies the process of analyzing multiple moving averages by automatically identifying the most influential one, saving time and providing valuable insights into market dynamics.
By combining current and historical data, this indicator offers a comprehensive view of the market's behavior, helping traders to adapt their strategies to the most relevant timeframes and trend strengths.
Option Delta CandlesDescription:
The Option Delta Candles with EMA indicator is designed to help traders visualize option delta values as candlesticks, calculated using the Black-Scholes model. It provides a unique way to view the cumulative delta changes in a normalized format, making it easier to identify trends and reversals. The addition of an EMA (Exponential Moving Average) overlay helps smooth out the data for better trend analysis.
Features:
Customizable Inputs:
Risk-Free Interest Rate: Adjust the risk-free rate for more precise option calculations.
Volatility: Input the volatility of the underlying asset to reflect current market conditions.
Strike Price: Enter the desired strike price of the option.
Days to Expiration: Specify the days until the option's expiration.
EMA Length: Modify the length of the EMA to suit different time frames and trading styles.
Visual Styles:
Customizable candle colors for bullish and bearish candles.
Configurable border and wick colors for personalized chart aesthetics.
How It Works:
The indicator uses the Black-Scholes model to calculate the delta of a European call option. Delta measures the sensitivity of the option's price to changes in the price of the underlying asset.
A cumulative delta is calculated and normalized to create candlestick representations, providing a visual cue of how the option delta changes over time.
The scaled delta values are normalized between 0 and 1, allowing for a consistent view of relative strength and weakness.
The EMA overlay helps identify smoothed trends and potential reversals within the delta data.
Applications:
Trend Identification: The indicator helps spot trends and potential reversals in option delta movements.
Volatility Analysis: By visualizing option delta, traders can gain insight into how changes in volatility impact options pricing.
Advanced Analysis: This tool is ideal for options traders and analysts looking to integrate delta analysis into their strategies.
Use Cases:
Traders can use the candlestick view to understand shifts in market sentiment through delta changes.
Options Analysts can visualize delta fluctuations over time, aiding in complex options trading strategies.
Technical Analysts may combine this indicator with other tools to confirm signals and enhance trading decisions.
Indicator Configuration:
Input Settings:
Risk-free interest rate (as a percentage).
Volatility (standard deviation) in percentage.
Strike price of the option.
Days remaining until expiration.
EMA length for trend analysis.
Style Customization:
Select colors for bullish and bearish candles, border, and wicks.
Change the color of the EMA line to distinguish it on the chart.
Release Notes:
Initial Version: Includes full implementation of the Black-Scholes delta calculation with customizable EMA and normalized candlestick view.
Future Updates: Potential additions may include enhancements for put options and integrated alerts.
COIN/ETH RatioThis TradingView indicator calculates and visualizes the ratio between Coinbase's stock price (COIN) and Ethereum's price (ETH) to help traders compare Coinbase's performance relative to Ethereum over time. This can be useful for those interested in understanding correlations or relative strength between a traditional crypto exchange stock and a major cryptocurrency.
Rainbow EMA Areas with Volatility HighlightThe indicator provides traders with an enhanced visual tool to observe price movements, trend strength, and market volatility on their charts. It combines multiple EMAs (Exponential Moving Averages) with color-coded areas to indicate the market’s directional bias and a high-volatility highlight for detecting times of increased market activity.
Explanation of Key Components
Multiple EMAs (Exponential Moving Averages):
Six different EMAs are calculated for various periods (15, 45, 100, 150, 200, 300).
Each EMA period represents a different timeframe, from short-term to long-term trends, providing a well-rounded view of price behavior across different market cycles.
The EMAs are color-coded for easy differentiation:
Green shades indicate bullish trends when prices are above the EMAs.
Red shades indicate bearish trends when prices are below the EMAs.
The space between each EMA is filled with a gradient color, creating a "wave" effect that helps identify the market’s overall direction.
ATR-Based Volatility Detection:
The ATR (Average True Range), a measure of market volatility, is used to assess how much the price is fluctuating. When volatility is high, price movements are typically more significant, indicating potential trading opportunities or times to exercise caution.
The indicator calculates ATR and uses a customizable multiplier to set a high-volatility threshold.
When the ATR exceeds this threshold, it signals that the market is experiencing high volatility.
Visual High Volatility Highlight:
A yellow background appears on the chart during periods of high volatility, giving a subtle but clear visual indication that the market is active.
This highlight helps traders spot potential breakout areas or increased activity zones without obstructing the EMA areas.
Volatility Signal Markers:
Small, red triangular markers are plotted above price bars when high volatility is detected, marking these areas for additional emphasis.
These signals serve as alerts to help traders quickly recognize high volatility moments where price moves may be stronger.
How to Use This Indicator
Identify Trends Using EMA Areas:
Bullish Trend: When the price is above most or all EMAs, and the EMA areas are colored in shades of green, it indicates a strong bullish trend. Traders might look for buy opportunities in this scenario.
Bearish Trend: When the price is below most or all EMAs, and the EMA areas are colored in shades of red, it signals a bearish trend. This condition can suggest potential sell opportunities.
Consolidation or Neutral Trend: If the price is moving within the EMA bands without a clear green or red dominance, the market may be in a consolidation phase. This period often precedes a breakout in either direction.
Volatility-Based Entries and Exits:
High Volatility Areas: The yellow background and red triangular markers signal high-volatility areas. This information can be valuable for identifying potential breakout points or strong moves.
Trading in High Volatility: During high-volatility phases, the market may experience rapid price changes, which can be ideal for breakout trades. However, high volatility also involves higher risk, so traders may adjust their strategies accordingly (e.g., setting wider stops or adjusting position sizes).
Trading in Low Volatility: When the yellow background and markers are absent, volatility is lower, indicating a calmer market. In these times, traders may choose to look for range-bound trading opportunities or wait for the next trend to develop.
Combining with Other Indicators:
This indicator works well in combination with momentum or oscillating indicators like RSI or MACD, providing a well-rounded view of the market.
For example, if the indicator shows a bullish EMA area with high volatility, and an RSI is trending up, it could be a stronger buy signal. Conversely, if the indicator shows a bearish EMA area with high volatility and RSI is trending down, this could be a stronger sell signal.
Practical Trading Examples
Bullish Trend in High Volatility:
Price is above the EMAs, showing green EMA areas, and the high volatility background is active.
This indicates a strong bullish trend with significant price movement potential.
A trader could look for breakout or continuation entries in the direction of the trend.
Bearish Reversal Signal:
Price crosses below the EMAs, showing red EMA areas, while high volatility is also detected.
This suggests that the market may be reversing to a bearish trend with increased price movement.
Traders could consider taking short positions or setting stops on existing long trades.
This indicator is designed to provide a rich visual experience, making it easy to spot trends, consolidations, and volatility zones at a glance. It is best used by traders who benefit from visual cues and who seek a quick understanding of both trend direction and market activity. Let me know if you'd like further customization or additional functionalities!
Support & Resistance AI LevelScopeSupport & Resistance AI LevelScope
Support & Resistance AI LevelScope is an advanced, AI-driven tool that automatically detects and highlights key support and resistance levels on your chart. This indicator leverages smart algorithms to pinpoint the most impactful levels, providing traders with a precise, real-time view of critical price boundaries. Save time and enhance your trading edge with effortless, intelligent support and resistance identification.
Key Features:
AI-Powered Level Detection: The LevelScope algorithm continuously analyzes price action, dynamically plotting support and resistance levels based on recent highs and lows across your chosen timeframe.
Sensitivity Control: Customize the sensitivity to display either major levels for a macro view or more frequent levels for detailed intraday analysis. Easily adjust to suit any trading style or market condition.
Level Strength Differentiation: Instantly recognize the strength of each level with visual cues based on how often price has touched each one. Stronger levels are emphasized, highlighting areas with higher significance, while weaker levels are marked subtly.
Customizable Visuals: Tailor the look of your chart with customizable color schemes and line thickness options for strong and weak levels, ensuring clear visibility without clutter.
Proximity Alerts: Receive alerts when price approaches key support or resistance, giving you a heads-up for potential market reactions and trading opportunities.
Who It’s For:
Whether you're a day trader, swing trader, or just want a quick, AI-driven way to identify high-probability levels on your chart, Support & Resistance AI LevelScope is designed to keep you focused and informed. This indicator is the perfect addition to any trader’s toolkit, empowering you to make more confident, data-backed trading decisions with ease.
Upgrade your analysis with AI-powered support and resistance—no more manual lines, only smart levels!
Volumetric Rejection Blocks [UAlgo]The Volumetric Rejection Blocks is designed to help traders identify and visualize key price levels where volumetric rejections occur, which may indicate a shift in market sentiment. These rejections can signal potential trend reversals or areas where price action is likely to face support or resistance. By drawing rejection blocks based on volumetric strength, the indicator allows users to observe where significant buying or selling pressure has been exerted, which can be used as a reference point for future price action.
Also indicator dynamically calculates swing highs and lows, analyzes bullish and bearish strengths based on volume-weighted price movements, and displays rejection blocks on the chart. Each rejection block represents an area where the price attempted to move beyond a certain level but faced rejection, either on a close or wick basis. This can be particularly useful for traders who rely on market structure and order flow to make informed decisions about entering or exiting trades.
🔶 Key Features
Swing Length Customization: Allows users to define the swing length, helping tailor the sensitivity of the swing high and low detection to the specific market conditions.
Rejection Block Visualization: Displays up to the last 10 rejection blocks based on user settings, clearly marking areas of significant bullish or bearish rejections.
Volumetric Strength Analysis: The indicator calculates bullish and bearish strength for each rejection block, based on volume-weighted price movements over the last few bars, giving insight into the intensity of the rejection.
Violation Check Type: Offers two options for violation detection—"Close" and "Wick". This allows traders to specify whether a price level is considered broken only if it closes beyond the level or if any wick breaches it.
Bullish and Bearish Block Coloring: Rejection blocks are colored to represent bullish (green) and bearish (red) rejection areas. The color transparency can be adjusted for clear visibility overlaid on the price chart.
Market Structure Labels: Labels and lines marking "Market Structure Shift" (MSS) and "Break of Structure" (BOS) are displayed, giving traders context about significant market structure changes.
🔶 Interpreting the Indicator
Rejection Blocks: These colored blocks on the chart indicate areas where the price faced significant buying or selling pressure. A green block suggests a bullish rejection (support zone), where buyers absorbed the sell-off, potentially pushing the price upward. Conversely, a red block indicates a bearish rejection (resistance zone), where sellers overpowered buyers, potentially driving the price lower.
Strength Analysis: The width of the green and red sections within a rejection block represents the relative bullish and bearish strengths. A wider green section indicates stronger bullish support, while a wider red section suggests more robust bearish resistance. This helps traders gauge the likelihood of price holding or breaching these levels.
Market Structure Shift (MSS) and Break of Structure (BOS): The indicator automatically detects and labels significant changes in market structure. An "MSS" label indicates the first break, suggesting a potential shift in trend direction. A "BOS" label indicates a subsequent confirmation in trend direction, allowing traders to recognize potential trend continuations.
Violation Check: Traders can choose how to interpret breaks of these rejection blocks. Using the "Close" option provides a more conservative approach, requiring a close beyond the level for confirmation. The "Wick" option is more aggressive, treating any wick beyond the level as a break.
🔶 Disclaimer
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Inversion Fair Value Gap Oscillator | Flux Charts💎 GENERAL OVERVIEW
Introducing the new Inversion Fair Value Gap Oscillator (IFVG Oscillator) indicator! This unique indicator identifies and tracks Inversion Fair Value Gaps (IFVGs) in price action, presenting them in an oscillator format to reveal market momentum based on IFVG strength. It highlights bullish and bearish IFVGs while enabling traders to adjust detection sensitivity and apply volume and ATR-based filters for more precise setups. For more information about the process, check the "📌 HOW DOES IT WORK" section.
Features of the new IFVG Oscillator:
Fully Customizable FVG & IFVG Detection
An Oscillator Approach To IFVGs
Divergence Markers For Potential Reversals
Alerts For Divergence Labels
Customizable Styling
📌 HOW DOES IT WORK?
Fair Value Gaps are price gaps within bars that indicate inefficiencies, often filled as the market retraces. An Inversion Fair Value Gap is created in the opposite direction once a FVG gets invalidated. The IFVG Oscillator scans historical bars to identify these gaps, then filters them based on ATR or volume. Each IFVG is marked as bullish or bearish according to the opposite direction of the original FVG that got invalidated.
An oscillator is calculated using recent IFVGs with this formula :
1. The Oscillator starts as 0.
2. When a new IFVG Appears, it contributes (IFVG Width / ATR) to the oscillator of the corresponding type.
3. Each confirmed bar, the oscillator is recalculated as OSC = OSC * (1 - Decay Coefficient)
The oscillator aggregates and decays past IFVGs, allowing recent IFVG activity to dominate the signal. This approach emphasizes current market momentum, with oscillations moving bullish or bearish based on IFVG intensity. Divergences are marked where IFVG oscillations suggest potential reversals. Bullish Divergence conditions are as follows :
1. The current candlestick low must be the lowest of last 25 bars.
2. Net Oscillator (Shown in gray line by default) must be > 0.
3. The current Bullish IFVG Oscillator value should be no more than 0.1 below the highest value from the last 25 bars.
Traders can use divergence signals to get an idea of potential reversals, and use the Net IFVG Oscillator as a trend following marker.
🚩 UNIQUENESS
The Inversion Fair Value Gap Oscillator stands out by converting IFVG activity into an oscillator format, providing a momentum-based visualization of IFVGs that reveals market sentiment dynamically. Unlike traditional indicators that statically mark IFVG zones, the oscillator decays older IFVGs over time, showing only the most recent, relevant activity. This approach allows for real-time insight into market conditions and potential reversals based on oscillating IFVG strength, making it both intuitive and powerful for momentum trading.
Another unique feature is the combination of customizable ATR and volume filters, letting traders adapt the indicator to match their strategy and market type. You can also set-up alerts for bullish & bearish divergences.
⚙️ SETTINGS
1. General Configuration
Decay Coefficient -> The decay coefficient for oscillators. Increasing this setting will result in oscillators giving the weight to recent IFVGs, while decreasing it will distribute the weight equally to the past and recent IFVGs.
2. Fair Value Gaps
Zone Invalidation -> Select between Wick & Close price for FVG Zone Invalidation.
Zone Filtering -> With "Average Range" selected, algorithm will find FVG zones in comparison with average range of last bars in the chart. With the "Volume Threshold" option, you may select a Volume Threshold % to spot FVGs with a larger total volume than average.
FVG Detection -> With the "Same Type" option, all 3 bars that formed the FVG should be the same type. (Bullish / Bearish). If the "All" option is selected, bar types may vary between Bullish / Bearish.
Detection Sensitivity -> You may select between Low, Normal or High FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivies resulting in spotting bigger FVGs, and higher sensitivies resulting in spotting all sizes of FVGs.
3. Inversion Fair Value Gaps
Zone Invalidation -> Select between Wick & Close price for IFVG Zone Invalidation.
4. Style
Divergence Labels On -> You can switch divergence labels to show up on the chart or the oscillator plot.
Engulfing BoxThe Engulfing Box indicator is a custom script designed to visually highlight and track bullish and bearish engulfing candlestick patterns on a price chart. These patterns are often used to identify potential reversal points, making them valuable for technical analysis. The script dynamically draws colored boxes around these patterns, helping users easily spot them in the price action.
Key Features:
Bullish Engulfing Pattern: When a candlestick fully engulfs the previous bearish candle (i.e., the close of the current candle is higher than the open of the previous candle, and the open is lower than the close of the previous candle), the script draws a green box around the bullish engulfing candle. This box is drawn from the open of the previous candle to the low of the previous candle.
Bearish Engulfing Pattern: When a candlestick fully engulfs the previous bullish candle (i.e., the close of the current candle is lower than the open of the previous candle, and the open is higher than the close of the previous candle), a red box is drawn around the bearish engulfing candle. This box is drawn from the open of the previous candle to the high of the previous candle.
Dynamic Box Management: Once an engulfing pattern is detected, a box is drawn with the following attributes:
Bullish Engulfing Box: Green, with a transparent background.
Bearish Engulfing Box: Red, with a transparent background.
The box will adjust its color to gray if the price moves past certain thresholds, indicating that the engulfing pattern may no longer be as relevant.
Max Pattern Tracking: The script limits the number of engulfing boxes tracked on the chart to prevent clutter. The maximum number of bullish and bearish engulfing patterns shown is customizable (set to 500 by default), and once this limit is exceeded, older boxes are deleted to maintain a clean chart.
Pattern Expiry: Boxes are deleted if price action moves beyond the pattern’s range, ensuring that outdated signals are removed. If the low price falls below the bottom of the bullish engulfing box, or the high price rises above the top of the bearish engulfing box, the respective box is removed. Additionally, if the low price moves below the top of the bullish box or the high price exceeds the bottom of the bearish box, the box's color is changed to a more neutral tone.
How it Works:
Pattern Detection: The script compares the current price data with the previous candlestick to detect the bullish or bearish engulfing patterns.
Box Creation: If a pattern is detected, a colored box is drawn around the candle to visually highlight the pattern.
Pattern Expiry and Cleanup: The script continuously monitors past boxes. If the price moves too far from the box’s range, the box is either deleted or altered to reflect the reduced significance of the pattern.
B ox Count Limit: To avoid clutter, the script ensures that no more than 500 bullish or bearish engulfing boxes are shown at any time.
Customization:
The number of previous bars to scan for engulfing patterns can be adjusted (maxBarsback).
The maximum number of patterns displayed at any time can be modified.
Simplified MetroThis is a derivative of J. Welles Wilder's RSI (Relative Strength Index) from 1978. This version uses a fast and slow offset of the RSI to create signals. The RSI itself has been removed from this version for visual simplicity, but its setting still has an impact on the fast and slow stepped lines.
The "RSI Period" sets the number of bars used to calculate the RSI. A higher value results in a smoother RSI, while a lower value makes it more reactive to price changes.
The "Fast Step Size" defines the step size for the fast trend line. A larger value makes the fast step line less sensitive to RSI changes, creating a smoother line.
The "Slow Step Size" defines the step size for the slow trend line. A larger value makes the slow step line less sensitive to RSI changes, resulting in a smoother line compared to the fast step.
When the faster blue line crosses and closes above the slower fuchsia line we have a signal to go long, and vice versa we take a short position.
This indicator should not be traded on its own, but could be a valuable addition to a system used for identifying trends.
Alex JMA RSX Clone with Price & Divergence [LazyBear]Indicator Description:
RSX Indicator (RSXC_LB): This script is based on a clone of the JMA RSX (Relative Strength Index clone by LazyBear). It is a momentum-based indicator that helps identify overbought and oversold levels, as well as potential trend reversals.
Functional Changes:
Convergence is now marked with a white line on the RSX plot.
Bullish Divergence is marked with a green line, indicating potential upward movement.
Bearish Divergence is marked with a red line, indicating potential downward movement.
The default state is marked with a blue line.
Strong Divergences (both bullish and bearish) are highlighted with triangle markers on the chart.
Updated Features:
The script now visualizes convergence and divergence more clearly using distinct colors:
White: Convergence (indicates potential trend strength).
Green: Bullish divergence (possible price increase).
Red: Bearish divergence (possible price decrease).
Blue: Neutral/default state.
Triangle markers indicate strong divergences, making it easier for the user to spot critical moments.
This visual enhancement aims to provide clearer and more intuitive signals for traders using the RSX indicator, helping them identify trend changes and reversals more effectively.
Probabilistic Trend Oscillator** MACD PLOTS ARE NOT PART OF THE INDICATOR IT IS FOR COMPARSION**
The "Probabilistic Trend Oscillator" is a technical indicator designed to measure trend strength and direction by analyzing price behavior relative to a moving average over both long-term and short-term periods. This indicator incorporates several innovative features, including probabilistic trend detection, enhanced strength scaling, and percentile-based thresholds for identifying potential trend reversals.
Key Components
Inputs:
The indicator allows users to customize several key parameters:
EMA Length defines the period for the Exponential Moving Average (EMA), which serves as a baseline to classify trend direction.
Long and Short Term Lengths provide customizable periods for analyzing trend strength over different timeframes.
Signal Line Length is used to smooth the trend strength data, helping users spot more reliable trend signals.
Extreme Value Lookback Length controls how far back to look when calculating percentile thresholds, which are used to identify overbought and oversold zones.
Trend Classification:
The indicator categorizes price behavior into four conditions:
Green: Price closes above the open and is also above the EMA, suggesting a strong upward trend.
Red: Price closes below the open but is above the EMA, indicating weaker upward pressure.
Green1: Price closes above the open but remains below the EMA, representing weak upward movement.
Red1: Price closes below the open and the EMA, signaling a strong downward trend.
Trend Strength Calculation:
The script calculates long-term and short-term trend values based on the frequency of these trend conditions, normalizing them to create probabilistic scores.
It then measures the difference between the short-term and long-term trend values, creating a metric that reflects the intensity of the current trend. This comparison provides insight into whether the trend is strengthening or weakening.
Enhanced Trend Strength:
To emphasize significant movements, the trend strength metric is scaled by the average absolute price change (distance between close and open prices). This creates an "enhanced trend strength" value that highlights periods with high momentum.
Users can toggle between two variations of trend strength:
Absolute Trend Strength is a straightforward measure of the trend's force.
Relative Trend Strength accounts for deviations between short term and long term values, focusing on how current price action differs from a long term behavior.
Percentile-Based Thresholds:
The indicator calculates percentile thresholds over the specified lookback period to mark extreme values:
The 97th and 3rd percentiles act as overbought and oversold zones, respectively, indicating potential reversal points.
Intermediate levels (75th and 25th percentiles) are added to give additional context for overbought or oversold conditions, creating a probabilistic range.
Visualization:
The selected trend strength value (either absolute or relative) is plotted in orange.
Overbought (green) and oversold (red) percentiles are marked with dashed lines and filled in blue, highlighting potential reversal zones.
The signal line—a smoothed EMA of the trend strength—is plotted in white, helping users to confirm trend changes.
A gray horizontal line at zero acts as a baseline, further clarifying the strength of upward vs. downward trends.
Summary
This indicator provides a flexible, probabilistic approach to trend detection, allowing users to monitor trend strength with customizable thresholds and lookback periods. By combining percentile-based thresholds with enhanced trend strength scaling, it offers insights into market reversals and momentum shifts, making it a valuable tool for both trend-following and counter-trend trading strategies.
Depth Trend Indicator - RSIDepth Trend Indicator - RSI
This indicator is designed to identify trends and gauge pullback strength by combining the power of RSI and moving averages with a depth-weighted calculation. The script was created by me, Nathan Farmer and is based on a multi-step process to determine trend strength and direction, adjusted by a "depth" factor for more accurate signal analysis.
How It Works
Trend Definition Using RSI: The RSI Moving Average ( rsiMa ) is calculated to assess the current trend, using customizable parameters for the RSI Period and MA Period .
Trends are defined as follows:
Uptrend : RSI MA > Critical RSI Value
Downtrend : RSI MA < Critical RSI Value
Pullback Depth Calculation: To measure pullback strength relative to the current trend, the indicator calculates a Depth Percentage . This is defined as the portion of the gap between the moving average and the price covered by a pullback.
Depth-Weighted RSI Calculation: The Depth Percentage is then applied as a weighting factor on the RSI Moving Average , giving us a Weighted RSI line that adjusts to the depth of pullbacks. This line is rather noisy, and as such we take a moving average to smooth out some of the noise.
Key Parameters
RSI Period : The period for RSI calculation.
MA Period : The moving average period applied to RSI.
Price MA Period : Determines the SMA period for price, used to calculate pullback depth.
Smoothing Length : Length of smoothing applied to the weighted RSI, creating a more stable signal.
RSI Critical Value : The critical value (level) used in determining whether we're in an uptrend or a downtrend.
Depth Critical Value : The critical value (level) used in determining whether or not the depth weighted value confirms the state of a trend.
Notes:
As always, backtest this indicator and modify the parameters as needed for your specific asset, over your specific timeframe. I chose these defaults as they worked well on the assets I look at, but it is likely you tend to look at a different group of assets over a different timeframe than what I do.
Large pullbacks can create large downward spikes in the weighted line. This isn't graphically pleasing, but I have tested it with various methods of normalization and smoothing and found the simple smoothing used in the indicator to be best despite this.
Market Structure Algo V2 [OmegaTools]The Market Structure Algo V2 (MS Algo V2) is an advanced TradingView indicator developed by OmegaTools to provide traders with a comprehensive analysis of market structure. This tool refines the insights provided by its predecessor, combining enhanced pivot point analysis, dynamic market structure scoring, and zone visualization to deliver an intuitive view of potential market movements. Through custom settings, the MS Algo V2 allows users to tailor the indicator to fit their trading strategies more closely, offering enhanced adaptability to both short-term and long-term trends.
Core Functionality
The MS Algo V2 differentiates between internal and external market structures by analyzing pivot highs and lows over user-defined periods. The internal market structure focuses on shorter timeframes, providing insights into recent price action, while the external structure considers broader trends. This dual-layered approach helps traders distinguish between immediate and overarching market trends.
The indicator introduces improved visualization for areas of interest or zones around pivot points, adjustable through zone distance settings. These zones serve as potential support and resistance areas, helping traders anticipate price reactions at key levels. In addition to the zones, the indicator now provides gradient-based color coding on bars, reflecting the market structure’s bullish or bearish intensity. This visual enhancement aids in quickly interpreting the current trend's strength.
Dynamic signal generation has been refined in MS Algo V2. The indicator now offers both classic signals and breakout signals based on the market structure, including entries, exits, and change-of-character (CHoCH) alerts. Signals are generated based on price interactions with pivot levels, indicating potential long and short opportunities.
Operational Mechanism
The MS Algo V2 calculates pivot highs and lows over specified periods to define internal and external market structures. A market structure score is derived from these pivot points, classifying the market into bullish or bearish extremes. Signals are generated as the closing price interacts with these levels, marking entry and exit points based on the calculated structure.
A new feature in this version is zone visualization, where zones are plotted around a dynamic moving average derived from the exponential and simple moving averages (EMA and SMA). The zones are adjusted based on ATR (Average True Range) and the specified zone distance percentile, providing a clear visual representation of potential support and resistance regions. The external and internal zones are represented with different levels of transparency for quick reference.
Usage Guidelines
To apply the MS Algo V2 to your TradingView charts, adjust the internal and external market structure settings to match your preferred analysis timeframes. The line style and width of each structure can also be customized for a tailored view. The Zone Distance setting allows users to define the percentile range of the zones around the moving average, providing further flexibility in identifying potential areas of support and resistance.
For a color-coded overview of market sentiment, the bar gradient feature can be enabled. This option uses a gradient that reflects the bullish or bearish intensity of the market structure, giving traders a visual cue on the market’s overall trend. Color-coded signals and zone fill areas further assist in interpreting the current market structure and identifying potential trade areas.
The indicator includes customizable alerts for long and short signals, as well as specific breakout alerts (BOS) and change-of-character (CHoCH) signals. These alerts can help traders stay informed about significant market structure changes, supporting timely trading decisions.
Understanding the Indicator’s Originality
The MS Algo V2 stands out due to its robust integration of pivot analysis, zone visualization, and market structure scoring, offering a unique perspective on market dynamics. With features like color-coded signals, bar gradients, and configurable alerts, MS Algo V2 provides an edge in understanding both the current market environment and potential turning points. This indicator’s ability to represent the market’s structure visually makes it a powerful addition to any trader’s toolkit, especially for those seeking a deeper, multi-layered approach to market analysis.
Enhanced Pressure MTF ScreenerEnhanced Pressure Multi-Timeframe (MTF) Screener Indicator
Overview
The Enhanced Pressure MTF Screener is an add-on that extends the capabilities of the Enhanced Buy/Sell Pressure, Volume, and Trend Bar Analysis . It provides a clear and consolidated view of buy/sell pressure across multiple timeframes. This indicator allows traders to determine when different timeframes are synchronized in the same trend direction, which is particularly useful for making high-confidence trading decisions.
Image below: is the Enhanced Buy/Sell Pressure, Volume, and Trend Bar Analysis with the Enhanced Pressure MTF Screener indicator both active together.
Key Features
1.Multi-Timeframe Analysis
The indicator screens various predefined timeframes (from 1 week down to 10 minutes).
It offers a table view that shows buy or sell ratings for each timeframe, making it easy to see which timeframes are aligned.
Traders can choose which timeframes to include based on their trading strategies (e.g., higher timeframes for position trading, lower timeframes for scalping).
2.Pressure and Trend Calculation
Uses Buy and Sell Pressure calculations from the Enhanced Buy/Sell Pressure indicator to determine whether buying or selling is dominant in each timeframe.
By analyzing pressures on multiple timeframes, the indicator gives a comprehensive perspective of the current market sentiment.
The indicator calculates whether a move is strong based on user-defined thresholds, which are displayed in the form of additional signals.
3.Heikin Ashi Option
The Heikin Ashi candle type can be toggled on or off. Using Heikin Ashi helps smooth out market noise and provides a clearer indication of trend direction.
This is particularly helpful for traders who want to filter out market noise and focus on the primary trend.
4.Table Customization
Table Positioning: The table showing timeframe data can be positioned at different locations on the chart—top, middle, or bottom.
Text and Alignment: The alignment and text size of the table can be customized for better visual clarity.
Color Settings: Users can choose specific colors to indicate buying and selling pressure across timeframes, making it easy to interpret.
5.Strong Movement Indicators
The screener provides an additional visual cue (🔥) for timeframes where the movement is deemed strong, based on a user-defined threshold.
This helps highlight timeframes where significant buying or selling pressure is present, which could signal potential trading opportunities.
How the Screener Works
1.Pressure Calculation
For each selected timeframe, the indicator retrieves the Open, High, Low, and Close (OHLC) values.
It calculates buy pressure (the range between high and low when the closing price is higher than the opening) and sell pressure (the range between high and low when the closing price is equal to or lower than the opening).
The screener computes the pressure ratio, which represents the difference between buying and selling pressure, to determine which side is dominant.
2.Trend Rating and Signal Generation
Based on the calculated pressure, the screener determines a trend rating for each timeframe: "Buy," "Sell," or "Neutral." (▲ ,▼ or •)
Additionally, it generates a signal (▲ or ▼) to indicate the current trend direction and whether the move is strong (based on the user-defined threshold).
If the movement is strong, a fire icon (🔥) is added to indicate that there is significant pressure on that timeframe, signaling a higher confidence in the trend.
3.Customizable Strong Move Thresholds
Strong Move Threshold: The screener uses this value to decide whether a trend is significantly strong. A higher value makes it more selective in determining strong moves.
Strong Movement Threshold: Helps determine when an additional strong signal should be displayed, offering further insight into the strength of market movement.
Inputs and Customization
The Enhanced Pressure MTF Screener is highly customizable to fit the needs of individual traders:
General Settings:
Use Heikin Ashi: Toggle this setting to use Heikin Ashi for a smoother trend representation.
Strong Move Threshold: Defines how strong a move should be to be considered significant.
Strong Movement Threshold: Specifies the level of pressure required to highlight a move with the fire icon.
Table Settings:
Position: Choose the vertical position of the screener table (top, middle, or bottom of the chart).
Alignment: Align the table (left, center, or right) to best suit your chart layout.
Text Size: Adjust the text size in the table for better readability.
Table Color Settings:
Users can set different colors to represent buying and selling signals for better visual clarity, particularly when scanning multiple timeframes.
Timeframe Settings:
The screener provides options to include up to ten different timeframes. Traders can select and customize each timeframe to match their strategy.
Examples of available timeframes include 1 Week, 1 Day, 12 Hours, down to 10 Minutes, allowing for both broad and detailed analysis.
Practical Use Case
Identifying Trend Alignment Across Timeframes:
Imagine you are about to take a long trade but want to make sure that the trend direction is aligned across multiple timeframes.
The screener displays "Buy" ratings across the 4H, 1H, 30M, and 10M timeframes, while higher timeframes (like 1W and 1D) also show "Buy" with strong signals (🔥). This indicates that buying pressure is strong across the board, adding confidence to your trade.
Spotting Reversal Opportunities:
If a downtrend is evident across most timeframes but suddenly a higher timeframe, such as 12H, changes to "Buy" while showing a strong move (🔥), this could indicate a potential reversal.
The screener allows you to spot these discrepancies and consider taking early action.
Benefits for Traders
1.Synchronization Across Timeframes:
One of the main strengths of this screener is its ability to show synchronized buy/sell signals across different timeframes. This makes it easy to confirm the strength and consistency of a trend.
For example, if you see that all the selected timeframes display "Buy," this implies that both short-term and long-term traders are favoring the upside, giving additional confidence to go long.
2.Quick and Visual Trend Overview:
The table offers an at-a-glance summary, reducing the time required to manually inspect each timeframe.
This makes it particularly useful for traders who want to make quick decisions, such as day traders or scalpers.
3.Strong Move Indicator:
The use of fire icons (🔥) provides an easy way to identify significant movements. This is particularly helpful for traders looking for breakouts or strong market conditions that could lead to high probability trades.
To put it short or to summarize
The Enhanced Pressure MTF Screener is a powerful add-on for traders looking to understand how buy and sell pressure aligns across multiple timeframes. It offers:
A clear summary of buying or selling pressure across different timeframes.
Heikin Ashi smoothing, providing an option to reduce market noise.
Strong movement signals to highlight significant trading opportunities.
Customizable settings to fit any trading strategy or style.
The screener and the main indicator are best used together, as the screener provides the multi-timeframe overview, while the main indicator provides an in-depth look at each individual bar and trend.
I hope my indicator helps with your trading, if you guys have any ideas or questions there is the comment section :D
Enhanced Buy/Sell Pressure, Volume, and Trend Bar analysisEnhanced Buy/Sell Pressure, Volume, and Trend Bar Analysis Indicator
Overview
This indicator is designed to help traders identify buy and sell pressure, volume changes, and overall trend direction in the market. It combines multiple concepts like price action, volume, and trend analysis, candlestick anaysis to provide a comprehensive view of market dynamics. The visual elements are intuitive, making it suitable for traders at different levels. This indicator works together with Enhanced Pressure MTF Screener which is a screener based of this indicator to make it easier to see Bullish/Bearish pressures and trend across multiple timeframes.
Image below: is the Enhanced Buy/Sell Pressure, Volume, and Trend Bar Analysis with the Enhanced Pressure MTF Screener indicator both active together.
Key Features
1.Buy/Sell Pressure Identification
Buy Pressure: Calculated based on price movement where the close price is higher than the opening price.
Sell Pressure: Calculated when the closing price is equal to or lower than the opening price.These pressures help you understand whether buyers or sellers are more dominant for each bar.
2.Volume Analysis
Normalized Volume: Volume data is normalized, making it easier to compare volume levels over different periods.
Volume Histogram: The volume is also presented as a histogram for easy visualization, showing whether the current volume is higher or lower compared to the average.
3.Simplified Coloring Option
You can choose to simplify the coloring of bars to reflect the dominant pressure: green for bullish pressure and red for bearish pressure. This makes it visually easier to identify who is in control. When simplified coloring is disabled, the bars' colors will represent the combined effect of buy and sell pressure.
4.Heikin-Ashi Candles for Pressure Calculation
The indicator includes an option to use Heikin-Ashi candles instead of traditional candles to calculate buy and sell pressure. Heikin-Ashi candles are known for smoothing out price action and providing a clearer trend representation.
5.Trend Background Coloring
This feature uses exponential moving averages (EMAs) to determine the trend:
Short-Term EMA vs. Long-Term EMA: When the short-term EMA is above the long-term EMA, the trend is considered bullish, and vice versa.
The background color changes based on the identified trend: green for an uptrend and red for a downtrend. This feature helps visualize the overall market direction at a glance.
6.Signals for Key Price Actions
The indicator plots various symbols to signal important price movements:
Bullish Close (▲): Indicates a strong upward movement where the close price crosses above the open.
Bearish Close (▼): Indicates a downward movement where the close price falls below the open.
Higher High (•): Highlights new highs compared to previous bars, useful for confirming an uptrend.
Lower Low (•): Highlights lower lows compared to previous bars, which can indicate a downtrend or bearish pressure.
Calculations Explained
1.Buy and Sell Pressure Calculation
The buy pressure is determined by the price range (high - low) if the closing price is above the opening price, indicating an increase in value.
The sell pressure is similarly calculated when the closing price is equal to or below the opening price.
The indicator uses the Average True Range (ATR) for normalization. Normalizing helps you compare pressure across different periods, regardless of market volatility.
2.Volume Normalization
Volume Normalization: To make volume comparable across different periods, the indicator normalizes it using the Simple Moving Average (SMA) of volume over a user-defined length.
Volume Histogram: The histogram provides a clear representation of volume changes compared to the average, making it easier to spot unusual activity that may indicate market shifts.
3.Combined Pressure Calculation
The indicator calculates a combined pressure value by subtracting sell pressure from buy pressure.
When combined pressure is positive, buying is dominant, and when negative, selling is dominant. This helps in visually understanding the ongoing momentum.
4.Trend Calculation
The indicator uses two EMAs to determine the trend:
Short-Term EMA (default 14-period) to capture recent price movements.
Long-Term EMA (default 50-period) to provide a broader trend perspective.
By comparing these EMAs on a higher timeframe, the indicator can identify whether the trend is up or down, making it easier for traders to align their trades with the larger market movement.
Inputs and Customization
The indicator provides several options for customization, allowing you to adjust it to your preferences:
SMA Length: Determines the lookback period for moving averages and volume normalization. A longer length provides more smoothing, whereas a shorter length makes the indicator more responsive.
Buy/Sell/Volume Colors: Customize the colors used to represent buying, selling, and volume to suit your preferences.
Heikin Ashi Option: Toggle between using Heikin Ashi or traditional OHLC (Open-High-Low-Close) candles for pressure calculations.
Trend Timeframe and EMA Periods: You can choose different timeframes and EMA periods for trend analysis to suit your trading strategy.
How to Use This Indicator
Identifying Market Momentum: Use the buy/sell pressure columns to see which side (buyers or sellers) is in control. Positive pressure combined with green color indicates strong buying, while red indicates selling.
Volume Confirmation: Check the volume area plot and histogram. High volume coupled with strong pressure is a sign of conviction, meaning the current move has backing from market participants.
Trend Identification: The trend background color helps identify the overall trend direction. Trade in the direction of the trend (e.g., take long positions during a green background).
Signal Indicators: The plotted symbols like "Bullish Close" and "Bearish Close" provide visual signals of key price actions, useful for timing entry or exit points.
Practical use Example
Scenario: The market is consolidating, and you see alternating green and red bars.
Action: Wait for a consistent sequence of green bars (buy pressure) along with a green background (uptrend) to consider going long, although you can go long without having a green background, the background adds confirmation layer.
Scenario: The market has several bearish closes (red ▼ symbols) accompanied by increasing volume.
Action: This could indicate strong selling pressure. If the background also turns red, it might be a good time to exit long positions or consider shorting.
Higher timeframe pressure and volume: Another way to use the indicator is to check buy/sell volume and pressure of the higher timeframe say weekly or daily or any timeframe you consider higher, once you’ve identified or feel confident in which direction the bar is going along with the full picture of trend, you can go to the lower timeframe and wait for it to sync with the higher timeframe to consider a long or a short. It is also easier to see when markets sync up by also applying the Enhanced Pressure MTF Screener which works in companion to this indicator.
Visual Cues and Interpretation
Combined Pressure Plot: The green and red column plot at the bottom of the chart represents the dominance between buying and selling. Tall green bars signify strong buying, while tall red bars indicate selling dominance.
Trend Background: Helps visualize the overall direction without manually drawing trend lines. When the background turns green, it generally indicates that the shorter-term moving average has crossed above the longer-term average—a sign of a bullish trend.
To Summarize shortly
The Enhanced Buy/Sell Pressure, Volume, and Trend Bar Analysis Indicator is an advanced but simple tool designed to help traders visually understand market dynamics. It combines different aspects of market analysis of candle pressure from buyers and sellers, volume confirmation, and trend identification into a single view, which can assist both new and experienced traders in making informed trading decisions.
This indicator:
Saves time by simplifying market analysis.
Provides clear visual cues for buy/sell pressure, volume, and trend.
Offers customizable settings to suit individual trading styles.
Always, I am happy to share my creations with you all for free. If you guys have cool ideas you would like to share, or suggestions for improvements the comment is below and I hope this overview gave an idea of how to use the indicator :D
Zig Zag + Aroon StrategyBelow is a trading strategy that combines the Zig Zag indicator and the Aroon indicator. This combination can help identify trends and potential reversal points.
Zig Zag and Aroon Strategy Overview
Zig Zag Indicator:
The Zig Zag indicator helps to identify significant price movements and eliminates smaller fluctuations. It is useful for spotting trends and reversals.
Aroon Indicator:
The Aroon indicator consists of two lines: Aroon Up and Aroon Down. It measures the time since the highest high and the lowest low over a specified period, indicating the strength of a trend.
Strategy Conditions
Long Entry Conditions:
Aroon Up crosses above Aroon Down (indicating a bullish trend).
The Zig Zag indicator shows an upward movement (indicating a potential continuation).
Short Entry Conditions:
Aroon Down crosses above Aroon Up (indicating a bearish trend).
The Zig Zag indicator shows a downward movement (indicating a potential continuation).
Exit Conditions:
Exit long when Aroon Down crosses above Aroon Up.
Exit short when Aroon Up crosses above Aroon Down.
ICT Setup 02 [TradingFinder] Breaker Blocks + Reversal Candles🔵 Introduction
The "Breaker Block" concept, widely utilized in ICT (Inner Circle Trader) technical analysis, is a crucial tool for identifying reversal points and significant market shifts. Originating from the "Order Block" concept, Breaker Blocks help traders pinpoint support and resistance levels. These blocks are essential for understanding market trends and recognizing optimal entry and exit points.
A Breaker Block is essentially a failed Order Block that changes its role when price action breaks through it. When an Order Block fails to hold as a support or resistance level, it reverses its function, becoming a Breaker Block.
There are two primary types : Bullish Breaker Blocks and Bearish Breaker Blocks. These Breaker Blocks align with the prevailing market trend and indicate potential entry points after a liquidity sweep or a shift in market structure.
Understanding and applying the Breaker Block strategy enables traders to capitalize on the behavior of institutional investors, enhancing their trading outcomes.
Bullish Setup :
Bearish Setup :
🔵 How to Use
The ICT Setup 02 indicator designed to automate the identification of Bullish and Bearish Breaker Blocks. This tool enables traders to easily spot these blocks on a chart and utilize them for entering or exiting trades. Below is a breakdown of how to use this indicator in both bullish and bearish setups.
🟣 Bullish Breaker Block Setup
A Bullish Breaker Block setup is identified in an uptrend, where it serves as a potential entry point. This setup occurs when a Bearish Order Block fails and the price moves above the high of that Order Block. In this scenario, the previously bearish Order Block turns into a Bullish Breaker Block, which now acts as a support level for the price.
To trade a Bullish Breaker Block, wait for the price to retest this newly formed support level. Confirmation of the uptrend can be achieved by analyzing lower time frames for further market structure shifts or other bullish indicators.
A successful retest of the Bullish Breaker Block provides a high-probability entry point for a long trade, as it signals institutional support. Traders often place their stop-loss below the low of the Breaker Block zone to minimize risk.
🟣 Bearish Breaker Block Setup
A Bearish Breaker Block setup, conversely, is used in a downtrend to identify potential sell opportunities. This setup forms when a Bullish Order Block fails, and the price moves below the low of that Order Block.
Once this Order Block is broken, it reverses its role and becomes a Bearish Breaker Block, providing resistance to the price as it pushes downward. For a Bearish Breaker Block trade, wait for the price to retest this resistance level.
A confirmation of the downtrend, such as a market structure shift on a lower time frame or additional bearish signals, strengthens the setup. The Bearish Breaker Block retest provides an opportunity to enter a short position, with a stop-loss placed just above the high of the Breaker Block zone.
🔵 Settings
Pivot Period : This setting controls the look-back period used to identify pivot points that contribute to the detection of Order Blocks. A higher period captures longer-term pivots, while a lower period focuses on more recent price action. Adjusting this parameter allows traders to fine-tune the indicator to match their trading time frame.
Breaker Block Validity Period : This setting defines how long a Breaker Block remains valid based on the number of bars elapsed since its formation. Increasing the validity period keeps Breaker Blocks active for a longer duration, which can be useful for higher time frame analysis.
Mitigation Level BB : This option lets traders choose the level of the Order Block at which the price is expected to react. Options like "Proximal," "50% OB," and "Distal" adjust the zone where a reaction may occur, offering flexibility in setting up the entry and stop-loss levels.
Breaker Block Refinement : The refinement option refines the Breaker Block zone to display a more precise range for aggressive or defensive trading approaches. The "Aggressive" mode provides a tighter range for risk-tolerant traders, while the "Defensive" mode expands the zone for those with a more conservative approach.
🔵 Conclusion
The Breaker Block indicator provides traders with a sophisticated tool for identifying key reversal zones in the market. By leveraging Breaker Blocks, traders can gain insights into institutional order flow and predict critical support and resistance levels.
Using Breaker Blocks in conjunction with other ICT concepts, like Fair Value Gaps or liquidity sweeps, enhances the reliability of trading signals. This indicator empowers traders to make informed decisions, aligning their trades with institutional moves in the market.
As with any trading strategy, it is crucial to incorporate proper risk management, using stop-losses and position sizing to minimize potential losses. The Breaker Block strategy, when applied with discipline and thorough analysis, serves as a powerful addition to any trader’s toolkit.
Sequence Waves [OmegaTools]the sequence waves indicator, developed by omegatools, is a multi-functional tool designed to detect trends, sequences, and potential reversal signals based on price movements and volume. this indicator has two main modes, "trend" and "sequence," which determine how the indicator calculates directional changes. additional enhancements in this version include reversal signals, allowing users to identify potential long and short opportunities with specific entry cues.
input parameters
mode (mode): chooses the calculation basis for directional movement.
- "trend": uses a midline calculated from the highest high and lowest low over the "trend mode length" period to assess if the price is in an upward or downward trend.
- "sequence": compares the current price to the closing price of the previous "sequence mode length" period to detect shifts in direction.
counter mode (modec): sets whether the counter increments by a fixed amount (1 or -1) or the volume of the bar, impacting the indicator’s sensitivity.
- "fixed": increments or decrements the counter by 1.
- "volume": increments or decrements based on the period’s volume, making the indicator more responsive to high-volume periods.
percentile length (lntp): defines the lookback period for calculating overbought and oversold thresholds using a percentile method. shorter lengths make ob/os levels more reactive.
sensitivity (sens): controls the percentile-based ob/os thresholds, ranging from 10 to 100. higher values narrow ob/os zones, while lower values widen them, impacting signal frequency.
trend mode length (lnt1): sets the period length for midline calculation in trend mode, defaulting to 21. longer periods smooth the midline for detecting major trends.
sequence mode length (lnt2): sets the lookback period in sequence mode, with a default of 4. shorter lengths capture more frequent directional changes, while longer lengths smooth signals.
visual colors:
- up color (upc): sets the color for upward movements.
- down color (dnc): sets the color for downward movements.
calculation logic
midline calculation: in trend mode, a midline is derived from the average of the highest high and lowest low over the "trend mode length" period, acting as a reference to detect upward or downward movements.
counter calculation:
- in trend mode, if the close price is above the midline, the counter increases (or volume if volume mode is selected). it decreases when the price is below.
- in sequence mode, the counter increases if the close is above the closing price from "sequence mode length" periods ago and decreases if below.
the counter resets to zero on direction changes, creating clear directional transitions.
overbought/oversold percentiles: separate arrays track the counter’s values each time the direction changes, creating historical up and down values. ob and os thresholds are dynamically determined based on these arrays, with sizes limited by the percentile length and sensitivity inputs.
reversal signals: two new variables, "long" and "short," detect potential reversal points when the counter crosses specific thresholds:
- long: a long signal is generated when the counter switches to positive and exceeds the down percentile.
- short: a short signal is triggered when the counter switches to negative and exceeds the up percentile.
visual and display elements
counter plot: plots the counter value on the chart with color-coded columns, making it easy to spot directional momentum.
up and down percentiles: displays overbought (up percentile) and oversold (down percentile) thresholds to identify potential reversal zones.
regime background: the background color changes based on market regime:
- bullish (up percentile > down percentile): greenish background.
- bearish (down percentile > up percentile): reddish background.
- neutral (both percentiles equal): grayish background.
reversal signals: plotted as small triangles on the chart for visual confirmation of potential long (triangle up) and short (triangle down) reversal signals.
obs background: changes color when the counter exceeds ob or os thresholds, creating a visual cue for extreme market conditions:
- overbought: background changes to a faint down color.
- oversold: background changes to a faint up color.
status table: displayed on the right side of the chart, providing real-time status information:
- status: shows "overbought," "oversold," "long," "short," or "none" based on the current counter position.
- regime: indicates whether the market is in a "bullish," "bearish," or "neutral" state based on the percentile comparison.
- percentile up/down: displays the current up and down percentiles for quick reference.
how to use the indicator
trend following: in trend mode, use the midline-based counter to gauge if the market is in an uptrend (positive counter) or downtrend (negative counter).
reversal detection: the ob/os thresholds assist in identifying potential reversal points. when the counter exceeds the up percentile, it may indicate an overbought state, suggesting a bearish reversal. similarly, dropping below the down percentile may indicate an oversold state, suggesting a bullish reversal.
entry signals: use the long and short reversal signals for potential entry points, particularly in trending or range-bound markets. these signals are indicated by up and down triangles.
sequence trading: in sequence mode, the indicator tracks shorter-term directional shifts, making it suitable for detecting smaller momentum patterns based on recent price comparisons.
volume sensitivity: selecting volume mode enhances sensitivity to high-volume moves, allowing it to detect stronger market activity in both trend and sequence modes.
the sequence waves indicator is suited to both short-term and long-term traders. it allows for detailed trend analysis, reversal detection, and dynamic ob/os signals. the inclusion of visual reversal cues makes it a flexible tool adaptable to a variety of trading strategies.
Arshtiq - Multi-Timeframe Trend StrategyMulti-Timeframe Setup:
The script uses two distinct timeframes: a higher (daily) timeframe for identifying the trend and a lower (hourly) timeframe for making trades. This combination allows the script to follow the larger trend while timing entries and exits with more precision on a shorter timeframe.
Moving Averages Calculation:
higher_ma: The 20-period Simple Moving Average (SMA) calculated based on the daily timeframe. This average gives a sense of the larger trend direction.
lower_ma: The 20-period SMA calculated on the hourly (current) timeframe, providing a dynamic level for detecting entry and exit points within the broader trend.
Trend Identification:
Bullish Trend: The script determines that a bullish trend is present if the current price is above the daily moving average (higher_ma).
Bearish Trend: Similarly, a bearish trend is identified when the current price is below this daily moving average.
Trade Signals:
Buy Signal: A buy signal is generated when the price on the hourly chart crosses above the hourly 20-period MA, but only if the higher (daily) timeframe trend is bullish. This ensures that buy trades align with the larger upward trend.
Sell Signal: A sell signal is generated when the price on the hourly chart crosses below the hourly 20-period MA, but only if the daily trend is bearish. This ensures that sell trades are consistent with the broader downtrend.
Plotting and Visual Cues:
Higher Timeframe MA: The daily 20-period moving average is plotted in red to help visualize the long-term trend.
Buy and Sell Signals: Buy signals appear as green labels below the price bars with the text "BUY," while sell signals appear as red labels above the bars with the text "SELL."
Background Coloring: The background changes color based on the identified trend for easier trend recognition:
Green (with transparency) when the daily trend is bullish.
Red (with transparency) when the daily trend is bearish.
WiseOwl Indicator - 1.0 The WiseOwl Indicator - 1.0 is a technical analysis tool designed to help traders identify potential entry points and market trends based on Exponential Moving Averages (EMAs) across multiple timeframes. It focuses on providing clear visual cues for bullish and bearish market conditions, as well as potential breakout opportunities.
Key Features
Multi-Timeframe EMA Analysis: Calculates EMAs on the current timeframe, Daily timeframe, and 15-minute timeframe to confirm trends.
Bullish and Bearish Market Identification: Determines market conditions based on the 200-period EMA on the Daily timeframe.
Directional Candle Coloring: Highlights candles based on their position relative to EMAs to provide immediate visual feedback.
Entry Signals: Plots buy and sell signals on the chart when specific conditions are met on the 1-hour and 4-hour timeframes.
Breakout Candle Highlighting: Colors candles differently when significant price movements occur, indicating potential breakout opportunities.
How It Works
Market Condition Determination:
Bullish Market: When the close price is above the 200-period EMA on the Daily timeframe.
Bearish Market: When the close price is below the 200-period EMA on the Daily timeframe.
Directional Candle Coloring:
Green Background: Applied when the close is above the 50-period EMA and the market is not bearish.
Red Background: Applied when the close is below the 50-period EMA and the market is not bullish.
Uses the Average True Range (ATR) to define a range threshold.
Suppresses signals when EMAs are within this range, indicating a sideways market.
Plotting Entry Signals:
Plots arrows on the chart for potential long and short entries on the 1-hour and 4-hour timeframes.
Breakout Candle Coloring:
Colors candles blue when a bullish breakout condition is met.
Colors candles orange when a bearish breakout condition is met.
How to Use
Trend Identification: Use the background coloring to quickly identify the overall market trend.
Green Background: Suggests bullish conditions; consider looking for long opportunities.
Red Background: Suggests bearish conditions; consider looking for short opportunities.
Entry Signals: Look for plotted arrows on the chart.
Green Upward Arrow: Indicates a potential long entry signal on the 1-hour or 4-hour timeframe.
Red Downward Arrow: Indicates a potential short entry signal on the 1-hour or 4-hour timeframe.
Breakout Opportunities: Watch for candles colored blue or orange.
Blue Candles: Highlight significant upward price movements.
Orange Candles: Highlight significant downward price movements.
Avoiding Ranging Markets: Be cautious when signals are suppressed due to ranging conditions; the market may not have a clear direction.
Example Usage
Identifying a Bullish Market:
The background turns green.
Price crosses above the 50 EMA.
A green upward arrow appears below a candle on the 1-hour or 4-hour chart.
Identifying a Bearish Market:
The background turns red.
Price crosses below the 50 EMA.
A red downward arrow appears above a candle on the 1-hour or 4-hour chart.
Notes
Open-Source Code: The script is open-source, allowing users to review and understand the logic behind the indicator.
Educational Purpose: This indicator is intended to aid in technical analysis and should not be used as the sole basis for trading decisions.
Disclaimer
This indicator is for educational purposes only and does not constitute financial advice. Trading involves risk, and you should consult with a qualified financial advisor before making any investment decisions.
Moving Average Simple Tool [OmegaTools]This TradingView script is a versatile Moving Average Tool that offers users multiple moving average types and a customizable overbought and oversold (OB/OS) sensitivity feature. It is designed to assist in identifying potential price trends, reversals, and momentum by using different average calculations and providing visual indicators for deviation levels. Below is a detailed breakdown of the settings, functionality, and visual elements within the Moving Average Simple Tool.
Indicator Overview
Indicator Name: Moving Average Simple Tool
Short Title: MA Tool
Purpose: Provides a choice of six moving average types with configurable sensitivity, which helps traders identify trend direction, potential reversal zones, and overbought or oversold conditions.
Input Parameters
Source (src): This option allows the user to select the data source for the moving average calculation. By default, it is set to close, but users can choose other options like open, high, low, or any custom price data.
Length (lnt): Defines the period length for the moving average. By default, it is set to 21 periods, allowing users to adjust the moving average sensitivity to either shorter or longer periods.
Average Type (mode): This input defines the moving average calculation type. Six types of averages are available:
SMA (Simple Moving Average)
EMA (Exponential Moving Average)
WMA (Weighted Moving Average)
VWMA (Volume-Weighted Moving Average)
RMA (Rolling Moving Average)
Middle Line: Calculates the average between the highest and lowest price over the period specified in Length. This is useful for a mid-range line rather than a traditional moving average.
Sensitivity (sens): This parameter controls the sensitivity of the overbought and oversold levels. The sensitivity value can range from 1 to 40, where a lower value represents a higher sensitivity and a higher value allows for smoother OB/OS zones.
Color Settings:
OS (Oversold Color, upc): The color applied to deviation areas that fall below the oversold threshold.
OB (Overbought Color, dnc): The color applied to deviation areas that exceed the overbought threshold.
Middle Line Color (midc): A gradient color that visually blends between overbought and oversold colors for smoother visual transitions.
Calculation Components
Moving Average Calculation (mu): Based on the chosen Average Type, this calculation derives the moving average or middle line value for the selected source and length.
Deviation (dev): The deviation of the source value from the moving average is calculated. This is useful to determine whether the current price is significantly above or below the average, signaling potential buying or selling opportunities.
Overbought (ob) and Oversold (os) Levels: These levels are calculated using a linear percentile interpolation based on the deviation, length, and sensitivity inputs. The higher the sensitivity, the narrower the overbought and oversold zones, allowing users to capture more frequent signals.
Visual Elements
Moving Average Line (mu): This line represents the moving average based on the selected calculation method and is plotted with a dynamic color based on deviation thresholds. When the deviation crosses into overbought or oversold zones, it shifts to the corresponding OB/OS colors, providing a visual indication of potential trend reversals.
Deviation Plot (dev): This plot visualizes the deviation values as a column plot, with colors matching the overbought, oversold, or neutral states. This helps users to quickly assess whether the price is trending or reverting back to its mean.
Overbought (ob) and Oversold (os) Levels: These levels are plotted as fixed lines, helping users identify when the deviation crosses into overbought or oversold zones.
