RedK Bar Strength Inspector / Bar Strength Index (BSI)Summary
=========
The Bar Strength Inspector / Bar Strength Index (BSI) is an indicator that evaluates each price bar against a user-selectable set of "strength categories" - BSI then calculates a combined score from these categories and provides an index - plotted as a centered oscillator - roughly similar to the way Relative Strength Index (RSI) works, which can be used to evaluate the strength of price move and the possibilities of trend continuation or reversal.
Background
=============
BSI is like a Swiss-army knife with many components - so apologies upfront if this guide gets long - and i know i will still miss few pieces that needs explaining. please alert me if something is not clear.
BSI is an advanced / re-built version of my Ultimate Trader Oscillator (UTO)
I continue to believe that one of the best trading tools that i can use, is a tool that can automate the visual inspection of the price chart - a tool that simulates (and quantifies in numbers/score) the way we visually look at a certain price bar, and make a judgement that "this is a strong bar, so I expect the trend down to possibly reverse" - BSI is a an attempt to achieve that. An attempt to answer a simple question (in a quantifiable manner):
how strong / weak is this price bar - how does it compare to previous bars ? what is the average of that strength (or weakness) for the last few bars ?(based on the trader's preferred timeframe)
How does BSI work
====================
* BSI will inspect and evaluate each bar against various (selectable) strength categories.
* BSI will give a -100/+100 score against each "strength category", then combine these scores into an index and create an average of that index
* the average index (also called BSI) will be calculated for both a short and long lengths
* the short length represents "local / short-term" strength - plotted as a blue/orange line (with an additional signal line to make easier to "read")
* the long-term reflects the broader bias (sentiment) - plotted as green/red area (or mountain)
How is BSI different from UTO
=============================
- I wrote BSI from the ground up to validate each scoring calculation and the resulting outcomes - so i would consider BSI to be more accurate than UTO
- i wrote BSI in a way to make it a lot more flexible. BSI allows me to choose which category to include in the "inspection"
- the strength categories are streamlined to reflect single bar strength, strength from bar-to-bar, and relative strength (range and volume) - they have also been chosen in a way that map to commonly used Technical Analysis concepts, to increase the value of BSI and the ability to compare with other common indicators (for example, BoP, Stochastic, Relative Volume and RSI)
- added the table view - which i use mainly to track the action within the current bar - and to learn more about how to evaluate strength vs weakness with various chart patterns
- UTO still represents the foundation of this work - but i will not update UTO any longer so all changes will be applied to the BSI- i have been using both UTO and BSI to guide my trading for the past few months.
- couple of other features in BSI:
- support for instruments with no volume data (even if the user chooses volume) - number of inspection categories will show as "7" in that case
- ability to plot the individual category scores, and the total weighted score (for the selected categories) - these plots are hidden by default
- ability to see the total score for all 8 (or 7 in case no volume data) categories regardless of how many are active - but only in the table view
- ability to be used as both a lower (independent) and a top indicator (on the price chart) -- see below examples.
Structure of the BSI Strength Categories
=====================================
The first 3 inspected strength categories focus on "single bar strength", they evaluate how the bar closes compared to the low, the Balance of Power (BoP) and the relative BoP
The next 3 categories focus on evaluating the bar-to-bar strength: how the bar closes compared to the low of the 2-bar range, how the bar closes compared to prior close - and the relative "shift"
The last 2 "strength" categories evaluate the relative range of bar compared to recent average range and the relative volume.
Understanding the bar inspection & scoring approach
==================================
During inspection for each category, a score is calculated with a value between 0 to 100, then it will be made "directional" - which means that +100 represents highest possible strength score and a value of -100 is the highest possible "weakness" score
Note that a 0 score doesn't mean "weak" - but rather "neutral" - this can be a bit confusing until we get used to the way BSI scoring works.
Example: in relative volume, a bar associated with the lowest volume observed during the lookback length, will have a 0 relative volume score -- while a bar associated with the highest volume observed will have either a +100 or a -100 score (depending on whether it's an up or down bar) - same thing for relative range.. and so on
Here are the 8 strength categories evaluated by the BSI
1 Bar closing score
2 Body : Spread (BoP) ratio
3 Relative BoP
4 2-bar Closing Score
5 2-bar Shift Ratio (Shift : 2R)
6 Relative Shift
7 Relative Range
8 Relative Volume
Specific meaning of keywords / concepts (within BSI context):
======================================================
Relative : compared to recently observed values (= within Lookback # bars)
Shift : the change in closing value vs prior bar
Bar Spread : high - low
Range : True Range ..... as in the tr() Pine function, so not to be confused with "spread"
More detailed notes about scoring and calculations for each strength category are included within the code
BSI Settings:
=============
Here is a chart showing the main sections in the BSI Settings box and how to configure it to your preference
Using the BSI:
================
- I use BSI for 2 main scenarios
(1) Guiding my Day-to-day trading: the usage here is roughly similar to a volume-weighted dual-period RSI .. with a lot more options - picking and choosing between the 8 strength categories in BSI allows for 255 variations of "strength evaluations" - a trader can choose to focus only on "single bar strength" score categories, so only picks the top 3 in the settings - another trader wants to track only the strength reflected by the relative range and relative volume, so picks the lower 2 categories. another trader wants to use BSI as a volume weighted Balance of Power.. and so on. Many combinations are possible.
i have added couple of charts that explain some of the "signals" we can expect from BSI (below chart) - note that i use the "Green/Red mountain plot" as the "prevailing sentiment" - as it confirms the longer term strength (or weakness). the BSI line plot reflects the short term strength and not necessarily tied directly to how the price is moving (see example in the chart - and also compare to how RSI works)
- 2 important points here if you plan to use BSI in trading: set BSI up on a 1-min or 5-min chart and watch how it works to learn how it evaluates each bar - and always use BSI in combination with other indicators that you are familiar with to validate and confirm any signals
(Important note: do not react to the values in the table as they change in real time - i found that to be very tempting - rather look at the broader context and the flow of the BSI / sentiment) - you can also test BSI with Paper Trading in TV - it's like a new car that you need some time to get used to :)
(2) Use BSI to help learn chart / pattern analysis - watch BSI print scores against the various categories in real time to hone your chart (pattern) reading skills and how to evaluate strength of various bar shapes - for example, a bar that closes at the high but does not reach the mid point of the prior bar - strong or weak ? how about a doji or a hammer ? ...etc
Chart showing main usage scenarios
Example BSI in real time:
======================
I hope this work helps few fellow traders hone their trading skills, or help inspire other ideas - please let me know if you have feedback or suggestions.
中心震荡指标
Price ActionFirst, you have to know price action, RTM price action Handbook could help you
this indicator shows you base and momentum candles
base candles could be zones of trade that show you fighting of bulls and bears, and momentum candles could show the power of those zones.
Base candles are white in the chart, and you can place your order at the good zone.
Rally candles and drop candles are momentum candles, and bold rally and bold drop show that it is more powerful than its before candle.
Zigzag compression is one way that shows the compression in trend.
it looks like the Wedges pattern at classic technical that shows pending orders are closed, so the target zone could be powerful to reverse the trend.
Black background of candle means that candle doesn't reach its before candle and so it is poor candle, I named it domination.
It is better to do not trade at poor candles.
At the end, I find Price action the best way to trade, and it makes you free of other indicator, even volume indicator.
This indicator is good for those who use price action strategy to trade and those who want to learn the price action.
It could be so helpful and reliable way to find the zones, and place buy or sell order and the target, specially for scalping.
Double CCIThe Commodity Channel Index (CCI) is a momentum oscillator used in technical analysis primarily to identify overbought and oversold levels by measuring an instrument's variations away from its statistical mean. Besides overbought/oversold levels, CCI is often used to find reversals as well as divergences. Originally, the indicator was designed to be used for identifying trends in commodities, however it is now used in a wide range of financial instruments.
There are several steps involved in calculating the CCI. The following example is for a typical 14 Period CCI:
CCI = (Typical Price - 14 Period SMA of TP) / (.015 x Mean Deviation)
Typical Price (TP) = (High + Low + Close)/3
Constant = .015
The Constant is set at .015 for scaling purposes. By including the constant, the majority of CCI values will fall within the 100 to -100 range.
Mean Deviation:
1) Subtract the most recent 14 Period Simple Moving from each typical price (TP) for the Period.
2) Sum these numbers strictly using absolute values.
3) Divide the value generated in step 2 by the total number of Periods (14 in this case).
Overbought and Oversold conditions can be used in their more traditional sense to identify future reversals . Remember true overbought/oversold thresholds values can and often do vary between instruments.
During a Bullish Trend , price crossing above the overbought threshold may indicate strong confidence in the move and price will continue to rise.
During a Bearish Trend , price crossing below the oversold threshold may indicate strong confidence in the move and price will continue to fall.
The first option is a modified CCI indicator that uses the "Arnaud Legoux Moving Average" instead of the SMA, and the source uses the VWAP instead of the HLC3. Added to this version an option to calculate CCI with different types of moving averages:
Green dots mean they are overbought
Orange dots mean they are oversold
Added a "SuperTrend Background" based on the modified CCI indicator:
Bull event = CCI crossing over the 0 line
Bear event = CCI crossing below the 0 line
Added a signal as EMA (modified CCI, signal length)
The second option is a standard CCI indicator that shows a coloured histogram of important levels, giving a good visual of the CCI levels. Added to this version is an extra coloured level +/-200 and an option to use Traditional CCI calculations according to user @JustUncleL
LEVELS:
Aqua: Greater than 200.
Lavender: Greater than 100 and less than 200.
Dark Lavender: Greater than 0 and less than 100.
Dark Coral: Less than 0 and greater than -100.
Coral: Less than -100 and greater than -200.
Light Red: Less than -200.
Bollinger Bands Ultra [DM]Greetings Colleagues
I share here the classic Bollinger Bands indicator
From the Alma series that I am sharing, this is the third.
Fibonacci levels have been added to the bands to the delight of those who use this technique.
The moving average has also been replaced by an Arnaud legoux moving average
- Available settings:
1. MA length, deviation and offset
2. Individual settings for the MA "basis" (offset and sigma)
3. Activate or deactivate recurring alerts at the crossing of the mean and the ends of the bands
4. Color shift of the Moving average "basis"
5. Color change of the body of the bands
6. Bar color change
If you like them, I encourage you to share the most suitable settings you found for this variant.
Ehlers Convolution Indicator [CC]The Convolution Indicator was created by John Ehlers (Cycle Analytics For Traders pgs 170-174) and this is version of an indicator to find potential reversal points. The idea behind this indicator is to use a variation of his AutoCorrelation Indicator that transforms the data using digital signal processing and as you can see it looks very similar to his BandPass Filter . The idea is that when this indicator peaks then it has reached a potential reversal point and so the stock may continue in the current direction but most of the time this indicator correctly points out the reversal points. I have included normal buy and sell signals but generally speaking you would want to buy when the indicator is around 0.05 to 0.10 and moving up and sell when it reaches its peak and is starting to move down.
Let me know if you have any other scripts you would like to see me publish!
Ehlers Optimum Predictor [CC]The Optimum Predictor was created by John Ehlers (Rocket Science For Traders pgs 209-210) and this indicator does a pretty good job of predicting major market moves. When the blue line crosses over the red line then this indicator is predicting an upcoming uptrend and when the blue line crosses under the red line then it is predicting an upcoming downtrend. Ehlers recommends using this indicator with an entire trading system to filter out any bad signals but most of the signals it gives are pretty accurate. He uses advanced digital signal processing to predict the future prices and uses it in an ema formula for the calculation. There are several ways to interpret this indicator: you can look for crossovers, you can also look for when the indicator goes above 0 for a general uptrend or below 0 for a general downtrend.
Let me know if there are any other scripts you would like to see me publish!
[blackcat] L1 volume Oscillator IndicatorLevel: 1
Background
Omega Research proposed volume oscillator indicator in June 2000.
Function
This is actually a volume-price indicator. With columns greater than zero line, which indicates a up trend. Otherwise, it is a down trend. Green columns indicate up trend pump; yellow columns indicate up trend retracements; red columns indicate down trend dump; blue columns indicate down trend re-bounce.
Key Signal
VolOsc --> volume osillator indicator.
Remarks
This is a Level 1 free and open source indicator.
Feedbacks are appreciated.
Aggresive Scalper/Swing Crypto StrategyThis is a simple yet very efficient scalper long strategy adapted for low timeframes for crypto. Can also be used with bigger timeframes as a swinger.
Its main components are:
Price oscillator swing
Vortex
Risk management for TP/SL
Rules for entry
We calculate the difference between the oscillator from the lowest low and the highest high. If the difference is positive, its a long potential. If its negative we exit from the long trade.
At the same time we check that the we have a crossover between the VIP vortex with the VIM vortex part.
Lastly we check that the current candle is bigger the second previous high.
Rules for exit
If we reach the take profit or the stop loss.
If we have a negative difference betwee LL and HH and VIP vortex crossunder with VIM vortex .
In this example I aimed for a 1:10 risk reward ratio, meaing that for every dollar lost, we will gain 10 when we win. Thus having a 10% minimum win rate will give us a profit over many trades.
If you have any questions, let me know !
Ehlers Market Mode Indicator [CC]The Market Mode Indicator was created by John Ehlers (Rocket Science For Traders pgs 114-117) and this is a handy tool that will tell you if the market is currently in a cycle or a trend. When the current market is in a cycle or choppy state then the indicator will read 0 and when it is in a trend then it will read 1. He uses some advanced digital signal processing to figure out the current trend and for how long it has been trending. I have included buy and sell signals using the trendline and so buy when the line turns green and sell when it turns red. Let me know if this indicator is useful for you.
Let me know if there are any other indicators you would like to see me publish!
Ehlers Relative Vigor Index [CC]The Relative Vigor Index was created by John Ehlers (Cybernetic Analysis For Stocks And Futures pg 58) and this is a momentum indicator that is similar to the Accumulation Distribution Oscillator created by Jim Waters and Larry Williams. He uses digital signal processing to smooth the indicator to provide clear buy and sell signals. The idea behind this indicator is that during uptrends, prices tend to close near the high and during downtrends, prices tend to close near the low. I have included strong buy and sell signals in addition to normal ones so strong signals are darker in color and normal ones are lighter in color. Buy when the line turns green and sell when it turns red. Usually the best signals I have found for this indicator is when the indicator is below the 0 line and turns green then it is usually a sign of a strong uptrend.
Let me know if there are any other scripts you would like to see me publish!
Ehlers Adaptive Bandpass Filter [CC]The Adaptive Bandpass Filter was created by John Ehlers (Cycle Analytics For Traders pgs 153-156) and this uses his autocorrelation code to provide the adaptive lengths to use for the underlying bandpass filter. The bandpass filter is a common way in digital signal processing to filter out the underlying noise in the data. It can actually be turned into a leading indicator by changing the bw variable to a smaller amount. Since this indicator is adaptive using the cycle period, the buy and sell signals are different compared to the normal bandpass filter. Buy signals for this indicator according to Ehlers are when the line is red and the line is under the oversold line (also red) then you buy when the indicator line turns green and then you exit when the indicator line turns red and is above the overbought line. This indicator doesn't provide clear buy and sell signals in all circumstances but generally speaking buy when the indicator line turns green and sell when it turns red. Feel free to experiment with this one.
Let me know if there are any other scripts you would like to see me publish!
Ehlers Adaptive Stochastic Indicator V1 [CC]The Adaptive Stochastic Indicator V1 was created by John Ehlers (Rocket Science For Traders pgs 233-234) and this indicator uses the same calculations to find a cycle period that is then used for both the creation of the stochastic indicator but also for the smoothing to create a double smoothed stochastic indicator. Because it is calculated this way, this indicator is more reactive than almost any other stochastic indicator and provides clear buy and sell signals especially when the underlying stock is trending. It is interpreted in the same way as a normal stochastic indicator so great buy signals are when the indicator is below the oversold line and starts to move up and vice versa. Buy when the line turns green and sell when it turns red.
Let me know if there are any other indicators you would like to see me publish!
Falcon Commodity Channel IndexFalcon CCI indicator is a superb indicator for anyone who wants to dig deep and still float. The trading lifestyle requires you to be one step ahead of everyone else, while doing so, you want to manage risk, enter at correct positions and perhaps exit at correct positions too.
Exiting at correct positions is so over rated, people tend to forget that exit is as important as entry and therefore we need to make sure that we use a good indicator setup that helps us to do that.
Falcon CCI Indicator is a receipe developed by me during recent Bitcoin slump, where we really needed something more to help us get pass through ups and downs, sudden movements and volatility in the market.
This indicator is perfect even for the swing and trend traders, intra day and day traders who want a quick win, rather than invest for long term.
Here are entry and exit plans based on this indicator:-
Setup: I keep CCI at 20, MA at 14 and EMA at 7 but I change it depending on the stock or crypto. Truth is, you can play with it and find what is best for your trading setups, but once you are done, it really works.
Buy: Buy when CCI crosses above MA or EMA , but CCI should be below 50
Sell: Sell when CCI crosses below MA or EMA (You need to choose), CCI should be above 150
There can be other entry and exit based on just CCI values, and therefore I have added some max and min inputs too in the indicator, e.g. Buy when CCI is -180 and sell when CCI is 300.
Trading is a long process.
To all my friends who have lost in futures , or anywhere else in the market, don't worry, just follow the process and follow your own rules. Don't break them.
You can connect with me on Trading View, message me to discuss this further. Happy to take your questions.
P.S you can also add linear regression to this to give you certain price points, for market tops or bottoms within the time frame.
Rainbow Indicator - Polfwack ProThis is a reverse engineered completely free Version of an Indicator that you would normally have to spend huge amounts of money on. I personally believe that no one should pay a fortune for access to an Indicator that contains huge amounts of freely available stuff.
This indicator claims to be even better than Market Cipher. Turns out it uses - just as Market Cipher, freely available Indicators and puts them in a nice looking package. I packed in as much as it made sense, the original Indicator is visually very cluttered with - in my opinion, too much random stuff that I have left out for a cleaner look, for example the truckload of entry signals, MFI and that Autotrendline feature that no one really needs because the human brain is way better at drawing lines.
Was is included? From top to bottom:
1st Bar -> Color coded RSI status. It shows Oversold and Overbought, Bullish, Hidden Bullish, Bearish and Hidden Bearish Divergences.
2nd Bar -> Color coded Market Structure Analyser. It shows if the market is currently ranging, bullish or bearish based on calculated pivots and outbreaks of said pivots. Bullish and Bearish breaks are also being printed.
Main Oscillator -> An Awesome Oscillator (AO) that prints bullish, hidden bullish, bearish and hidden bearish divergences as well as positive and negative Pivot Points.
Bollinger Bands -> They are following the AO and are color coded to the long term trend indicator for less visual clutter.
Secondary Oscillator -> Accelerator Oscillator (AC).
3rd Bar -> Color coded longer term trend indicator, it mirrors the color code on the Bollinger Bands. The original uses an ATR-based calculation, but I found a Kumo cloud to be more simple and more reliable for this kind of thing.
4th Bar -> Color coded mirror of the Accelerator Oscillator.
I tried to make the whole Indicator as adjustable as possible, most of the variables can be edited to your liking.
On the internet you can find all sorts of strategies for every single of the included indicators.
I hope that I have saved you at least some money. Good luck.
Ehlers Modified Relative Strength Index [CC]The Modified Relative Strength Index was created by John Ehlers (Cycle Analytics For Traders pgs 87-88) and this is a typical RSI that uses his roofing filter as the input. He smooths it with his own super smoother filter to provide signals. This indicator is extremely reactive and works in cycles so keep that in mind. I haven't been able to come up with clear buy and sell signals at this point so let me know if you any suggestions but I'm publishing the code to complete my goal of publishing all of his work one day. I will be publishing a bunch of Ehlers scripts in the next few weeks so stay tuned. What I recommend for buy and sell signals at this point are to buy when the indicator goes below the oversold line and starts going up and sell when the indicator goes below the oversold line a second time. Vice versa for sell signals.
Let me know if there are any other scripts you would like to see me publish!
% DivergenceSimple script to plot the amount of divergence between a source signal and the price of the chart.
I have an RSI version uploaded but this one allows any input. Figured RSI would be most useful most likely but this could be useful to have access to as well.
% Divergence of RSIA simple script that plots the difference between the %ROC of price vs the %ROC of RSI, AKA the % of divergence. A simple way to analyze how strong a potential divergence is. Top reversals are above 0, bottom reversals are below. A value of 0 means price and RSI are changing by the same % value. So, if oscillator is moving up as price moves up, it means divergence is increasing. If oscillator moves down as price moves up, it means divergence is decreasing.
MACD, EMA, Know sure thing, Chopy Market - high adaptabilityHey there :)
This is the free version of the script. The following indicators / settings are missing:
- Support and resistance zones
- dynamic textboxes for alarms when using bots (3 Commas, Alertatron, etc.)
- a table showing the current position, indicators and other important information
With this script there is the possibility to completely customize the MACD . Starting with the MACD and signal line, the histogram and the color of the histogram.
Since the Pinecoders team has previously deleted the script, I will mention the fee settings in a bit more detail:
In this script a fee of 0.01% and a slipage of 15 was used. With each trade the total capital (100%) is used with a risk reward of 1 to 1.5.
The total capital, i.e. the risk, can be changed at any time under the "Settings" tab at "Equity".
I also added an EMA , the Know sure thing indicator and the Chopy Market indicator (by TradingRush) to the script to filter out bad trades.
The EMA:
Since the EMA is very reliable and shows whether there is an upward or downward trend, it should be used with the indicators in any case. It prevents long trades in downward movements and vice versa.
The KST Indicator:
The KST indicator has a similar movement as the MACD, but is by and large a bit more time delayed. It filters out false swings of the MACD and thus prevents bad trades.
The Chopy Market Indicator by Tradingrush:
The Chopy Market indicator, which was introduced by TradingRush in one of its videos, has the ability to detect sideways markets and block zones below this line for trades by means of a fixed value (the line).
To exit the trades, I added the following options:
ATR Exits. Exits based on past candles (lowest low, highest high).
Static exits based on set percentages.
In the next days I will create a tutorial for the script, just have a look on my profile.
If you have any questions about the script, let me know.
Price Volume Trend + Signal and HistogramThis is a script based on PVT + Signal Line, which can be EMA or SMA. It then plots a histogram which is equal to PVT - Signal. This makes it easier to spot divergences.
To better match up the scales, we decided to add a multiplication factor to the histogram. Each asset and even timeframe requires a different multiplication factor, so please experiment to find what suits you.
Credits and special thanks are listed on the source code.
Forex bot full strategy with risk managementThis is a full strategy designed for forex major pairs, specially EUR/USD using 1h time frame chart.
Its components are
200 EMA
MACD
OBV
PSAR
RIsk management with tp and sl movements
Rules for entry
For long = Previous histogram from MACD was below 0 and current one is above 0. CLose of a candle is above EMA 200 , OBV oscillator is negative and we have an uptrend from PSAR
For short = Previous histogram from MACD was above 0 and current one is below 0. CLose of a candle is below EMA 200 , OBV oscillator is positive and we have an downtrend from PSAR
Rules for exit
For tp and sl values we calculate the distance from the close of candle until the psar values.
If you have any questions, let me know !
Natural Directional Combo [CC]The Natural Directional Combo was created by Jim Sloman as part of his Ocean theory series and I believe this is his final unique formula that I'm publishing to make them all open source. If you know of any others then please send me a message. He passed away at a young age and I want to make sure his legacy lives on. Big thanks to @altcoinz and @tmac87 for giving me his full source code and materials in order to publish everything. So like my Natural Market Combo script, this essentially take his Natural Stochastic Indicator and his Natural Directional Index to create his own average of both indicators. Like the market combo indicator, I created a fix to address the errors in his original script and included both strong and normal buy and sell signals. Strong signals are darker in color and normal signals are lighter in color. Buy when the line turns green and sell when it turns red.
Let me know if there are any other scripts you would like to see me publish!
Buy/Sell RatingIdentifies prices above and below input percentile thresholds over the input length of time. Use to identify buy/sell opportunities relative to recent pricing. Also provides percent of price distance from moving average over the same length.
Forex scalper 2xEMA + SRSI + MACDThis is a forex scalping strategy designed for the most liquid pairs, like major forex pairs.
Its made of
1 EMA 50
1 EMA 100
Stochastic RSI
MACD
Rules
For long :close of the candle is above moving average 50, moving average 50> moving average 100, macd histogram is positive and cross over of stochastic rsi with the oversold level.
For short :close of the candle is below moving average 50, moving average 50 < moving average 100, macd histogram is negative and cross under of stochastic rsi with the overbought level.
Exit
For exit we have take profit and stop loss using fixed pip points.
For this example on EURUSD we use 20 pips for both tp and sl
IF you have any questions let me know !
