OPEN-SOURCE SCRIPT

Pivot Points + Day First Candle Breakout + VWAP + Supertrend

已更新

This indicator amalgamates several key indicators to provide a comprehensive analysis for trading decisions, including SuperTrend, Pivot Points, VWAP, along with the Day First Candle Breakout strategy.

Key Features:
Day First Candle Breakout: Identifies potential breakout opportunities based on the first candle of the trading day. It utilizes the high and low of the initial trading range to determine entry points.

Timeframe Selection: Allows users to select the timeframe for analyzing the first candle (e.g., 5, 15, or 60 minutes).

Previous Day and Week High/Low: Displays the high and low of the previous day and week to provide additional context for trading decisions and assess the strength of the trend.

Trend Strength Analysis: Indicates whether the current price is above or below the previous day's high or low, signaling a stronger bullish or bearish trend respectively.

SuperTrend Indicator: Visualizes the trend direction and potential reversal points based on the SuperTrend indicator. It helps traders to stay aligned with the prevailing trend and avoid premature exits.

Pivot Points: Presents key support and resistance levels derived from Pivot Points, assisting traders in identifying potential reversal or breakout zones.

VWAP (Volume Weighted Average Price): Plots VWAP to provide insight into the average price traded over a given period, aiding in determining the fair value of the asset and potential buying/selling zones.

Trading Signals:
Buy Signal: Triggered when the price exceeds the high of the initial trading range after an upward price gap.

Sell Signal: Generated when the price falls below the low of the initial trading range after a downward price gap.

Caveats for Effective Trading:
Extended Trading Ranges: Adjusts support and resistance levels if the initial trading range extends beyond the defined timeframe.

Morning Noise Consideration: Exercises caution during volatile morning sessions to avoid false breakouts and whipsaws.

Pullbacks and Narrow Range Bars: Looks for opportunities during pullbacks or when the price forms narrow range bars to enter trades, reducing the risk of sudden reversals.

版本注释

This advanced trading indicator offers a comprehensive toolkit for intraday trading, combining multiple analytical tools to provide precise trading signals and trend analysis.
A key feature of this indicator is its focus on the initial trading hour, which studies have shown to be highly effective in identifying significant market movements.

Statistical Analysis
ORB Effectiveness: Studies have demonstrated that 60% to 70% of the day's high and low are established within the first trading hour. This indicates that on these days, the stock may experience limited price movement, making it less likely to produce profitable trades.
Reduced False Signals: By focusing on the 30% to 40% of days when the stock is trending and exhibiting momentum (i.e., when the price breaks out of the initial trading range), our indicator helps reduce the chances of false trades and improve overall accuracy. These days often present more significant price movements, offering greater potential for profitable trades.

Key Features:
Dynamic ORB Calculation: Our indicator employs a refined ORB calculation to provide accurate and reliable entry points.
Multi-Time frame Perspective: By analyzing the ORB across multiple time frames, we capture both short-term and long-term trends, enhancing the reliability of breakout signals.
Comprehensive Technical Analysis: Our indicator combines Fibonacci pivot levels, Supertrend, and multiple EMAs to provide a well-rounded technical analysis.
Visual Insights: Candlestick coloring and other visual cues help traders quickly identify significant price levels and market trends.
Multi-Time frame Trend Analysis: The multi-time frame MACD and RSI table offers a comprehensive view of market trends across various time scales.
VWAP Integration: The Volume Weighted Average Price (VWAP) provides a benchmark for assessing the current trend.
Customizable Settings: Our indicator offers customizable settings to align with your individual trading style and preferences.

Additional Considerations:
Highlight Unique Features:
Bullish Trend Signals: When the LTP is above the ORB, previous day's high, and Supertrend, while RSI and MACD on 1-hour or higher time frames indicate a bullish trend, it signals a potential buy opportunity.
Entry Point: Enter the trade at a pullback level to EMA 9 on the 15-minute time frame.
52-Week High Indication: The color of the candlesticks indicates whether the stock is at a 52-week high.

Focus on Benefits:
Improved Accuracy: The combination of ORB, Supertrend, MACD, and RSI provides a more accurate and reliable approach to identifying trading opportunities.
Enhanced Decision-Making: The multi-time frame analysis and visual cues help traders make informed decisions based on a comprehensive understanding of market conditions.
Increased Profit Potential: By focusing on high-probability setups, the indicator can help traders increase their profit potential.

版本注释

Opening Range Breakout (ORB) and Supertrend setting updated.
1) Checkbox (On/off) to show Percentage Move Between High and Low.
2) Checkbox (On/off) to show the percentage move calculation in Supertrend.

版本注释

This updated script provides an advanced mechanism to identify and visualize breakouts and pullbacks with enhanced precision using multiple technical indicators and customizable filters. It incorporates detailed rules for confirming trends, momentum, and pullback validity, making it an essential tool for swing and positional traders. Below is the structured description of its key components:

1. Volume Weighted Average Price (VWAP) Breakouts

The script identifies significant price movements beyond key levels, such as the previous day’s high or low. These levels act as reference points for breakout detection.
Importance: VWAP-based breakout analysis aligns trades with institutional activity and market trends, helping traders participate in significant price moves.

2. Breakout Visualization with Opening Range Breakout (ORB)

Breakouts are visualized with up or down arrows on the chart to indicate bullish or bearish momentum.
Opening Range Breakout (ORB) Condition: The breakout is confirmed when the price crosses the previous day’s high or low and aligns with the volume-weighted average price (VWAP). This ensures the breakout is backed by strong momentum.
Bullish Breakout Condition: Price closes above the previous day’s high and crosses the upper VWAP level Opening range High.
Bearish Breakout Condition: Price closes below the previous day’s low and crosses the lower VWAP level Opening range Low.
Importance: ORB is a powerful strategy for capturing momentum-driven moves at the start of a trading session, helping traders act quickly on strong directional movements.

3. Pullback Identification with Precise Matching Logic

Pullbacks are identified when the price retraces to predefined levels (e.g., VWAP or EMA bands) after a confirmed breakout. The script uses a precise condition-matching logic to validate the pullback:
Bullish Pullback Logic:
Price remains above the breakout level (previous day’s high).
Price is above the upper VWAP level Opening range High.
RSI (oscillator) is greater than its moving average, indicating strong momentum.
MACD is above the signal line, confirming bullish momentum.
The low of the pullback must touch or remain below the VWAP band EMA(9) i.e EMA1.
Bearish Pullback Logic:
Price remains below the breakout level (previous day’s low).
Price is below the lower VWAP level Opening range Low.
RSI (oscillator) is below its moving average, indicating bearish momentum.
MACD is below the signal line, confirming bearish momentum.
The high of the pullback must touch or remain above the VWAP band EMA(9) i.e EMA1.
The script plots visual markers (e.g., triangles) to highlight these pullback conditions on the chart.
Importance: This exact matching logic ensures that pullbacks are validated by robust technical conditions, making the pullback entries highly reliable. It allows traders to confidently re-enter the trend at optimal levels.

4. Advanced Filtering with Momentum Indicators

Indicators such as MACD, RSI, and moving averages are integrated to refine and filter breakout and pullback conditions.
Importance: By combining momentum and trend indicators, the script minimizes false signals and enhances the accuracy of trade setups.

5. Dynamic Signal Labels

The script dynamically displays percentage changes and pullback statistics on the chart to provide deeper insights into the setup.
Importance: Offers traders real-time data to assess the strength and viability of a trade, enabling informed decision-making.

Overall Benefits for Traders

Capture Momentum Early: The Opening Range Breakout (ORB) logic ensures traders can act quickly on high-probability moves, especially at the start of a trading session.
Precision in Pullback Entries: The condition-matching logic ensures that only high-quality pullbacks are flagged, improving the risk-to-reward ratio.
Time-Saving: Visual markers and alerts automate chart analysis, making it easier to spot breakout and pullback opportunities.
Flexibility: Customizable filters and indicators make the script suitable for various trading styles, including scalping, swing, and positional trading.
Risk Management: Pullback identification provides better entry points, minimizing risk while maximizing profit potential.

This script offers a structured approach to breakout and pullback trading, making it a valuable tool for traders aiming for consistent and profitable results.

Date - 18/12/2024

版本注释

The script identifies significant price movements beyond key levels, such as the previous day’s high or low. These levels act as reference points for breakout detection.
Importance: VWAP-based breakout analysis aligns trades with institutional activity and market trends, helping traders participate in significant price moves.

2. Breakout Visualization with Opening Range Breakout (ORB)

Breakouts are visualized with up or down arrows on the chart to indicate bullish or bearish momentum.
Opening Range Breakout (ORB) Condition: The breakout is confirmed when the price crosses the previous day’s high or low and aligns with the volume-weighted average price (VWAP). This ensures the breakout is backed by strong momentum.
Bullish Breakout Condition: Price closes above the previous day’s high and crosses the upper VWAP level Opening range High.
Bearish Breakout Condition: Price closes below the previous day’s low and crosses the lower VWAP level Opening range Low.
Importance: ORB is a powerful strategy for capturing momentum-driven moves at the start of a trading session, helping traders act quickly on strong directional movements.

3. Pullback Identification with Precise Matching Logic

Pullbacks are identified when the price retraces to predefined levels (e.g., VWAP or EMA bands) after a confirmed breakout. The script uses a precise condition-matching logic to validate the pullback:
Bullish Pullback Logic:
Price remains above the breakout level (previous day’s high).
Price is above the upper VWAP level Opening range High.
RSI (oscillator) is greater than its moving average, indicating strong momentum.
MACD is above the signal line, confirming bullish momentum.
The low of the pullback must touch or remain below the VWAP band EMA(9) i.e EMA1.
Bearish Pullback Logic:
Price remains below the breakout level (previous day’s low).
Price is below the lower VWAP level Opening range Low.
RSI (oscillator) is below its moving average, indicating bearish momentum.
MACD is below the signal line, confirming bearish momentum.
The high of the pullback must touch or remain above the VWAP band EMA(9) i.e EMA1.
The script plots visual markers (e.g., triangles) to highlight these pullback conditions on the chart.
Importance: This exact matching logic ensures that pullbacks are validated by robust technical conditions, making the pullback entries highly reliable. It allows traders to confidently re-enter the trend at optimal levels.

4. Advanced Filtering with Momentum Indicators

Indicators such as MACD, RSI, and moving averages are integrated to refine and filter breakout and pullback conditions.
Importance: By combining momentum and trend indicators, the script minimizes false signals and enhances the accuracy of trade setups.

5. Dynamic Signal Labels

The script dynamically displays percentage changes and pullback statistics on the chart to provide deeper insights into the setup.
Importance: Offers traders real-time data to assess the strength and viability of a trade, enabling informed decision-making.

Overall Benefits for Traders

Capture Momentum Early: The Opening Range Breakout (ORB) logic ensures traders can act quickly on high-probability moves, especially at the start of a trading session.
Precision in Pullback Entries: The condition-matching logic ensures that only high-quality pullbacks are flagged, improving the risk-to-reward ratio.
Time-Saving: Visual markers and alerts automate chart analysis, making it easier to spot breakout and pullback opportunities.
Flexibility: Customizable filters and indicators make the script suitable for various trading styles, including scalping, swing, and positional trading.
Risk Management: Pullback identification provides better entry points, minimizing risk while maximizing profit potential.

This script offers a structured approach to breakout and pullback trading, making it a valuable tool for traders aiming for consistent and profitable results.

Date - 18/12/2024