It uses 2 timeframes: the one you are currently using to see the chart and an "anchor trend" which is a higher order frame.
Supported timeframes are: 1m, 5m, 15m, 30m, 1H, 4H, 1D, 1W
The Strategy relies on two indicators:
How does it works?
It looks for a moment when the following conditions are met.
- Positive directionality in SQZM monitor in anchor timeframe
- Positive directionality in SQZM monitor in current timeframe
- Recent minimum in CMF
- Negative directionality in SQZM monitor in anchor timeframe
- Negative directionality in SQZM monitor in current timeframe
- Recent maximum in CMF
After a BUY or SELL order is executed the plot will start showing two lines: A TP line, and a SL line.
The TP and SL move dynamically based on a greedy algorithm based on 3 input parameters.
- Min Profit to Start Moving SL (%): Sets an initial target for the trade.
- Maximum Possible of SL (%): This is the maximum amount possible for SL. If is not too high, a shorter SL will be chosen based on Kaufman's Stops method
- Take profit factor: Is how much portion of the target I am taking as profit once the target is reached
When the first target is reached (+5%), the SL will be updated to 2.5% over the enter price.
When the second target is reached (+10%), the SL will be updated to 5% over the enter price.
Note: The strategy might abandon the position prematurely if a contrary signal is received while the trade is opened, and will change direction.
The Strategy has been backtested mostly for crypto. It might be good for stocks too, but the parameters mentioned might need some adjustments since price moves at a different rate.
Recommended timeframe is 4H for BTC , and 30min/1H for alts.
Comments and ideas are more than welcome!
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.