EdgeAnalysisGroup Volume Cloud V1.1
EdgeAnalysisGroup Volume Cloud V1.1
Brief Intro
I will keep this sweet and simple so I can write about it elsewhere in greater deal later down the line.
I had the idea for this script when I saw the EMA ribbons indicator, and noticed something that was happening on the line crosses. I then tried to find a way to optimise the strategy for the fast moving volatile crypto-currency market~ this is where I came up with this indicator which was based of moving averages and volume, but was tradable like a cloud with an area. Another factor I decided to take from the ichimoku cloud was the offset it provides- this allows a clean image for the user to trade with and pre-plan.
This guaranteed a clear cut trading strategy which I could easily backtest and tweak for optimisation.
I can say this indicator seems to work well for the 1day chart.
There is lots I have to learn about the line crosses, and the direction of the cloud etc., so we can create new trading strategies.
This script will work better on some charts than others, but hopefully it is still a hit for most and all time frames.. I have alot of backtesting to do with this indicator on all markets- and potentially some heavy quality of life updates and technical tweaks too.
Trading strategy
Taking a position
There are 3 lines on the topside and the bottom side of the cloud.
Open: Price crossing and closing the middle line of the 3.
Stop-loss: Outer line of the 3 it has already crossed.
Target: Inside line of the opposite 3 it hasn't crossed. Any STRONG supports/resistances need to also be taken into account and price assessed as usual as the move is completing- manual closes are a big part of management.
VolumeCloud Twists
If there is a twist- (the 6 lines crossing across each other) this can either be bullish or bearish depending on the direction of the cloud, this is an early sign of a trend forming.
When it is above the cloud we can expect retests of the upper/lower lines on pullbacks. I am developing a trading strategy currently for breaks above the cloud with twists so stay tuned for that.
ETH/BTC Backtest
A small backtest on ETH/BTC gave an 80%+ win rate, this is a small sample size of about 25 positions or so, but with such a strong win rate I can only imagine it could be a strong tool to a clever trader.
Did you enjoy this brief little guide, why not join me and the other members of the EdgeAnalysisGroup ?
Message me on tradingview and I'll shoot you a link to our discord. Here you can get access to more indicators, a fantastic community and even high quality signals made by me and a few other top traders.
Xander
All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, indicators, or stock/cryptocurrency picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. These are not facts but my personal views and opinions.
I will not and cannot be held liable for any actions you take as a result of anything you read or use here,
Brief Intro
I will keep this sweet and simple so I can write about it elsewhere in greater deal later down the line.
I had the idea for this script when I saw the EMA ribbons indicator, and noticed something that was happening on the line crosses. I then tried to find a way to optimise the strategy for the fast moving volatile crypto-currency market~ this is where I came up with this indicator which was based of moving averages and volume, but was tradable like a cloud with an area. Another factor I decided to take from the ichimoku cloud was the offset it provides- this allows a clean image for the user to trade with and pre-plan.
This guaranteed a clear cut trading strategy which I could easily backtest and tweak for optimisation.
I can say this indicator seems to work well for the 1day chart.
There is lots I have to learn about the line crosses, and the direction of the cloud etc., so we can create new trading strategies.
This script will work better on some charts than others, but hopefully it is still a hit for most and all time frames.. I have alot of backtesting to do with this indicator on all markets- and potentially some heavy quality of life updates and technical tweaks too.
Trading strategy
Taking a position
There are 3 lines on the topside and the bottom side of the cloud.
Open: Price crossing and closing the middle line of the 3.
Stop-loss: Outer line of the 3 it has already crossed.
Target: Inside line of the opposite 3 it hasn't crossed. Any STRONG supports/resistances need to also be taken into account and price assessed as usual as the move is completing- manual closes are a big part of management.
VolumeCloud Twists
If there is a twist- (the 6 lines crossing across each other) this can either be bullish or bearish depending on the direction of the cloud, this is an early sign of a trend forming.
When it is above the cloud we can expect retests of the upper/lower lines on pullbacks. I am developing a trading strategy currently for breaks above the cloud with twists so stay tuned for that.
ETH/BTC Backtest
A small backtest on ETH/BTC gave an 80%+ win rate, this is a small sample size of about 25 positions or so, but with such a strong win rate I can only imagine it could be a strong tool to a clever trader.
Did you enjoy this brief little guide, why not join me and the other members of the EdgeAnalysisGroup ?
Message me on tradingview and I'll shoot you a link to our discord. Here you can get access to more indicators, a fantastic community and even high quality signals made by me and a few other top traders.
Xander
All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, indicators, or stock/cryptocurrency picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. These are not facts but my personal views and opinions.
I will not and cannot be held liable for any actions you take as a result of anything you read or use here,