Information Entropy OscillatorHello Traders
This Trading Indicator / script is my interpritation of the use of shannons entropy in Trading, hope you find this usefull !!!
Information Entropy Oscillator :
In Physics, entropy is a concept and a measurable physical property that is most commonly associated with the state of disorder, randomness or uncertainty of a system. In the Thermodynamic field Entropy also describes how much energy is not available to do work, The more disordered a system and higher the entropy, the less of a system's energy is available to do work. This last definition is central to the idea of this trading idea, Briefly this is because the lower the information Entropy the “more predictable” is price movement which is characterized by a two states process up(h), and down(d) - (green and red candles), thus the more predictable a up or down move, Given the definition this also means more “energy” which can be thought of as the systems “predictive power” is available to do work, where work in this case to predict the likelihood of a trend continuation.
In Information Theory, the entropy of a random variable (A statistical term that describes either a discrete or continuous event with a respective (discrete or continuous) probability, where the latter is expressed via a CDF - cumulative distribution function) is the average level of "information", "surprise", or "uncertainty" inherent to the variable's possible outcomes. note : this is the definition for Entropy that this script is built upon
Formual Derivation :
Interpretations of Information Entropy Values (Polar approach)
when , …
H(x) = 0 Max-Information gain (purity of knowledge available)
H(x) = 1 No INformation gain, When both states probabilities are equal, i.e. H = T = 0.5, the function yields maximum uncertainty and therefore maximum entropy. This reflects
When Information gain is nearing 0, thus low, the script attempts to predict the proceeding trend direction, for example when entropy is low and all bars preceding the real market / time bars have all been positive and the real time bar closes as a red candle (close < yesterday's open) the script takes this as a high information gain signal, “predicting” a Bearish trend.
The Script Also comes with a Information Entropy heat map to plot entropy (inspired by Oppenheimer and Barbie lol), to see this turn off all candle plots, plots in the Chart settings, under the symbol header .
震荡指标
Normalized Adaptive Trend Lines [MAMA and FAMA]These indicators was originally developed by John F. Ehlers (Stocks & Commodities V. 19:10: MESA Adaptive Moving Averages). Everget wrote the initial functions for these in pine script. I have simply normalized the indicators and chosen to use the Laplace transformation instead of the hilbert transformation
How the Indicator Works:
The indicator employs a series of complex calculations, but we'll break it down into key steps to understand its functionality:
LaplaceTransform: Calculates the Laplace distribution for the given src input. The Laplace distribution is a continuous probability distribution, also known as the double exponential distribution. I use this because of the assymetrical return profile
MESA Period: The indicator calculates a MESA period, which represents the dominant cycle length in the price data. This period is continuously adjusted to adapt to market changes.
InPhase and Quadrature Components: The InPhase and Quadrature components are derived from the Hilbert Transform output. These components represent different aspects of the price's cyclical behavior.
Homodyne Discriminator: The Homodyne Discriminator is a phase-sensitive technique used to determine the phase and amplitude of a signal. It helps in detecting trend changes.
Alpha Calculation: Alpha represents the adaptive factor that adjusts the sensitivity of the indicator. It is based on the MESA period and the phase of the InPhase component. Alpha helps in dynamically adjusting the indicator's responsiveness to changes in market conditions.
MAMA and FAMA Calculation: The MAMA and FAMA values are calculated using the adaptive factor (alpha) and the input price data. These values are essentially adaptive moving averages that aim to capture the current trend more effectively than traditional moving averages.
But Omar, why would anyone want to use this?
The MAMA and FAMA lines offer benefits:
The indicator offers a distinct advantage over conventional moving averages due to its adaptive nature, which allows it to adjust to changing market conditions. This adaptability ensures that investors can stay on the right side of the trend, as the indicator becomes more responsive during trending periods and less sensitive in choppy or sideways markets.
One of the key strengths of this indicator lies in its ability to identify trends effectively by combining the MESA and MAMA techniques. By doing so, it efficiently filters out market noise, making it highly valuable for trend-following strategies. Investors can rely on this feature to gain clearer insights into the prevailing trends and make well-informed trading decisions.
This indicator is primarily suppoest to be used on the big timeframes to see which trend is prevailing, however I am not against someone using it on a timeframe below the 1D, just be careful if you are using this for modern portfolio theory, this is not suppoest to be a mid-term component, but rather a long term component that works well with proper use of detrended fluctuation analysis.
Dont hesitate to ask me if you have any questions
Again, I want to give credit to Everget and ChartPrime!
Directional Movement Index FLEXA common problem experienced by short term traders using DMI/ADX is that the session breaks results in carry-over effects from the prior session. For example, a large gap up would result in a positive DMI, even though momentum is clearly negative. Note the extremely different results in the morning session, when the gap is reversed.
The DMI-FLEX algoritm resets the +DI and -DI values to the prior session ending midpoint, so that new momentum can be observed from the indicator. (Note for Pinescript coders: rma function does not accept series int, thus the explicit pine_rma function)
DMI-FLEX has the added feature that the ADX value, instead of a separate line, is shown as shading between the +DI and -DI lines, and the color itself is determined by whether +DI is above -DI for a bullish color, or -DI is above +DI for a bearish color.
DMI Flex also gives you the flexibility of inverse colors, in case your chart has inverted scale.
Summary and How to use:
1) Green when +DI is above -DI
2) Red when -DI is above +DI
3) Deeper shading represents a higher ADX value.
Multi-Timeframe Trend Detector [Alifer]Here is an easy-to-use and customizable multi-timeframe visual trend indicator.
The indicator combines Exponential Moving Averages (EMA), Moving Average Convergence Divergence (MACD), and Relative Strength Index (RSI) to determine the trend direction on various timeframes: 15 minutes (15M), 30 minutes (30M), 1 hour (1H), 4 hours (4H), 1 day (1D), and 1 week (1W).
EMA Trend : The script calculates two EMAs for each timeframe: a fast EMA and a slow EMA. If the fast EMA is greater than the slow EMA, the trend is considered Bullish; if the fast EMA is less than the slow EMA, the trend is considered Bearish.
MACD Trend : The script calculates the MACD line and the signal line for each timeframe. If the MACD line is above the signal line, the trend is considered Bullish; if the MACD line is below the signal line, the trend is considered Bearish.
RSI Trend : The script calculates the RSI for each timeframe. If the RSI value is above a specified Bullish level, the trend is considered Bullish; if the RSI value is below a specified Bearish level, the trend is considered Bearish. If the RSI value is between the Bullish and Bearish levels, the trend is Neutral, and no arrow is displayed.
Dashboard Display :
The indicator prints arrows on the dashboard to represent Bullish (▲ Green) or Bearish (▼ Red) trends for each timeframe.
You can easily adapt the Dashboard colors (Inputs > Theme) for visibility depending on whether you're using a Light or Dark theme for TradingView.
Usage :
You can adjust the indicator's settings such as theme (Dark or Light), EMA periods, MACD parameters, RSI period, and Bullish/Bearish levels to adapt it to your specific trading strategies and preferences.
Disclaimer :
This indicator is designed to quickly help you identify the trend direction on multiple timeframes and potentially make more informed trading decisions.
You should consider it as an extra tool to complement your strategy, but you should not solely rely on it for making trading decisions.
Always perform your own analysis and risk management before executing trades.
The indicator will only show a Dashboard. The EMAs, RSI and MACD you see on the chart image have been added just to demonstrate how the script works.
DETAILED SCRIPT EXPLANATION
INPUTS:
theme : Allows selecting the color theme (options: "Dark" or "Light").
emaFastPeriod : The period for the fast EMA.
emaSlowPeriod : The period for the slow EMA.
macdFastLength : The fast length for MACD calculation.
macdSlowLength : The slow length for MACD calculation.
macdSignalLength : The signal length for MACD calculation.
rsiPeriod : The period for RSI calculation.
rsiBullishLevel : The level used to determine Bullish RSI condition, when RSI is above this value. It should always be higher than rsiBearishLevel.
rsiBearishLevel : The level used to determine Bearish RSI condition, when RSI is below this value. It should always be lower than rsiBullishLevel.
CALCULATIONS:
The script calculates EMAs on multiple timeframes (15-minute, 30-minute, 1-hour, 4-hour, daily, and weekly) using the request.security() function.
Similarly, the script calculates MACD values ( macdLine , signalLine ) on the same multiple timeframes using the request.security() function along with the ta.macd() function.
RSI values are also calculated for each timeframe using the request.security() function along with the ta.rsi() function.
The script then determines the EMA trends for each timeframe by comparing the fast and slow EMAs using simple boolean expressions.
Similarly, it determines the MACD trends for each timeframe by comparing the MACD line with the signal line.
Lastly, it determines the RSI trends for each timeframe by comparing the RSI values with the Bullish and Bearish RSI levels.
PLOTTING AND DASHBOARD:
Color codes are defined based on the EMA, MACD, and RSI trends for each timeframe. Green for Bullish, Red for Bearish.
A dashboard is created using the table.new() function, displaying the trend information for each timeframe with arrows representing Bullish or Bearish conditions.
The dashboard will appear in the top-right corner of the chart, showing the Bullish and Bearish trends for each timeframe (15M, 30M, 1H, 4H, 1D, and 1W) based on EMA, MACD, and RSI analysis. Green arrows represent Bullish trends, red arrows represent Bearish trends, and no arrows indicate Neutral conditions.
INFO ON USED INDICATORS:
1 — EXPONENTIAL MOVING AVERAGE (EMA)
The Exponential Moving Average (EMA) is a type of moving average (MA) that places a greater weight and significance on the most recent data points.
The EMA is calculated by taking the average of the true range over a specified period. The true range is the greatest of the following:
The difference between the current high and the current low.
The difference between the previous close and the current high.
The difference between the previous close and the current low.
The EMA can be used by traders to produce buy and sell signals based on crossovers and divergences from the historical average. Traders often use several different EMA lengths, such as 10-day, 50-day, and 200-day moving averages.
The formula for calculating EMA is as follows:
Compute the Simple Moving Average (SMA).
Calculate the multiplier for weighting the EMA.
Calculate the current EMA using the following formula:
EMA = Closing price x multiplier + EMA (previous day) x (1-multiplier)
2 — MOVING AVERAGE CONVERGENCE DIVERGENCE (MACD)
The Moving Average Convergence Divergence (MACD) is a popular trend-following momentum indicator used in technical analysis. It helps traders identify changes in the strength, direction, momentum, and duration of a trend in a financial instrument's price.
The MACD is calculated by subtracting a longer-term Exponential Moving Average (EMA) from a shorter-term EMA. The most commonly used time periods for the MACD are 26 periods for the longer EMA and 12 periods for the shorter EMA. The difference between the two EMAs creates the main MACD line.
Additionally, a Signal Line (usually a 9-period EMA) is computed, representing a smoothed version of the MACD line. Traders watch for crossovers between the MACD line and the Signal Line, which can generate buy and sell signals. When the MACD line crosses above the Signal Line, it generates a bullish signal, indicating a potential uptrend. Conversely, when the MACD line crosses below the Signal Line, it generates a bearish signal, indicating a potential downtrend.
In addition to the MACD line and Signal Line crossovers, traders often look for divergences between the MACD and the price chart. Divergence occurs when the MACD is moving in the opposite direction of the price, which can suggest a potential trend reversal.
3 — RELATIVE STRENGHT INDEX (RSI):
The Relative Strength Index (RSI) is another popular momentum oscillator used by traders to assess the overbought or oversold conditions of a financial instrument. The RSI ranges from 0 to 100 and measures the speed and change of price movements.
The RSI is calculated based on the average gain and average loss over a specified period, commonly 14 periods. The formula involves several steps:
Calculate the average gain over the specified period.
Calculate the average loss over the specified period.
Calculate the relative strength (RS) by dividing the average gain by the average loss.
Calculate the RSI using the following formula: RSI = 100 - (100 / (1 + RS))
The RSI oscillates between 0 and 100, where readings above 70 are considered overbought, suggesting that the price may have risen too far and could be due for a correction. Readings below 30 are considered oversold, suggesting that the price may have dropped too much and could be due for a rebound.
Traders often use the RSI to identify potential trend reversals. For example, when the RSI crosses above 30 from below, it may indicate the start of an uptrend, and when it crosses below 70 from above, it may indicate the start of a downtrend. Additionally, traders may look for bullish or bearish divergences between the RSI and the price chart, similar to the MACD analysis, to spot potential trend changes.
VCC SmtmWorks better for Cryptos (1W and greater than) timeframes.
This strategy incorporates multiple indicators to make informed trading signals. It leverages the Stochastic indicator to assess price momentum, utilizes the Bollinger Band to identify potential oversold and overbought conditions, and closely monitors Moving Averages to gauge the trend's bullish or bearish nature.
A long signal will be displayed if the following conditions are met:
The Stochastic D and Stochastic K both indicate an oversold condition, with Stochastic K being lower than Stochastic D.
The current Price Low is below the Bollinger Lower Band.
The Price Close is currently below all Moving Averages.
A Death Cross pattern has formed among the Moving Averages.
A short signal will be displayed if the opposite of the long conditions are true:
The Stochastic D and Stochastic K both indicate an overbought condition, with Stochastic K being higher than Stochastic D.
The current Price High is above the Bollinger Upper Band.
The Price Close is currently above all Moving Averages.
A Golden Cross pattern has formed among the Moving Averages.
Expected Move from RSI [SS]Publishing this experimental indicator.
What it does:
The indicator uses a user-defined lookback period on a user-defined timeframe to lookback at all instances of RSI. It breaks RSI down as follows:
RSI between
0 - 10
10 - 20
20 - 30
30 - 40
40 - 50
50 - 60
60 - 70
70 - 80
80 - 90
90 - 100
From there, it stores the ticker's move from open to high and open to low. It will then use this data to look at the current RSI based on the specified timeframe and plot the expected move based on the average move the ticker does with a similar RSI reading.
It will plot the expected range, with the high range being plotted in green and the low range being plotted in red.
It will also display an infographic that dictates the current RSI based on the selected time frame, the anticipated up move and the anticipated down move. This infographic will also tell you the strength of the relationship (correlation) RSI has with the ticker's high or low price:
From there the user can determine whether this RSI reading is traditionally bullish or bearish for the ticker. A greater down move indicates that the RSI traditionally elicits a bearish response. A greater up move indicates the inverse.
The user can also view a chart of a breakdown of the anticipated moves based on RSI. If the option to "Show Expected Move Table" is select in the settings menu, the following table will appear:
From here you can see the average up move and down move a ticker does based on its corresponding RSI reading.
NOTE: When using the table, please adjust your chart timeframe to the selected timeframe on the indicator. Thus, if you are looking at the 1 hour levels, please adjust your chart to the 1 hour timeframe to use the chart.
Additional Note: When using the table, an "NaN" means that there are no instances of the ticker being at that RSI level within the designated timeframe period. You can extend your lookback period to up to 500 candles to see if it finds additional instances of similar RSI. Otherwise, you can adjust the selected timeframe.
Uses:
The indicator can be used on all timeframes. It can help give you an idea as to whether the RSI indicates a bearish or bullish sentiment.
It can signal a potential reversal or continuation. It can also help you with determining target prices for day trades and scalp trades.
And that is the indicator. Its pretty straight forward. It is experimental and new, so feel free to play around with it and let me know your thoughts.
Safe trades everyone and thank you for reading!
MACDh with divergences & impulse system-----------------------------------------------------------------
General Description:
This indicator ( the one on the low panel ) is a classic MACD that also shows regular divergences between its histogram and the prices. This script is special because it can be adjusted to fit several criteria when trading divergences filtering them according to the "height" and "width" of the patterns. The script also includes the "extra feature" Impulse System, which you will hardly find anywhere else in similar classic MACD histogram divergence indicators.
The indicator helps to find trend reversals, and it works on any market, any instrument, any timeframe, and any market condition (except against really strong trends that do not show any other sign of reversion yet).
Please take on consideration that divergences should be taken with caution.
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Definition of classic Bullish and Bearish divergences:
* Bearish divergences occur in uptrends identifying market tops. A classical or regular bearish divergence occurs when prices reach a new high and then pull back, with an oscillator (MACD histogram in this case) dropping below its zero line. Prices stabilize and rally to a higher high, but the oscillator reaches a lower peak than it did on a previous rally.
In the chart above (weekly charts of NKE, Nike, Inc.), in area X (around August 2021), NKE rallied to a new bull market high and MACD-Histogram rallied with it, rising above its previous peak and showing that bulls were extremely strong. In area Y, MACD-H fell below its centerline and at the same time prices punched below the zone between the two moving averages. In area Z, NKE rallied to a new bull market high, but the rally of MACD-H was feeble, reflecting the bulls’ weakness. Its downtick from peak Z completed a bearish divergence, giving a strong sell signal and auguring a nasty bear market.
* Bullish divergences , in the other hand, occur towards the ends of downtrends identifying market bottoms. A classical (also called regular) bullish divergence occurs when prices and an oscillator (MACD histogram in this case) both fall to a new low, rally, with the oscillator rising above its zero line, then both fall again. This time, prices drop to a lower low, but the oscillator traces a higher bottom than during its previous decline.
In the example in the chart above (weekly charts of NKE, Nike, Inc.), you see a bearish divergence that signaled the October 2022 bear market bottom, giving a strong buy signal right near the lows. In area A, NKE (weekly charts) appeared in a free fall. The record low A of MACD-H indicated that bears were extremely strong. In area B, MACD-H rallied above its centerline. Notice the brief rally of prices at that moment. In area C, NKE slid to a new bear market low, but MACD-H traced a much more shallow low. Its uptick completed a bullish divergence, giving a strong buy signal.
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Extra feature: Impulse System
This indicator also includes the “ Impulse System ”. The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram, and identifies inflection points where a trend speeds up or slows down. The moving average identifies the trend, while the MACD-Histogram measures momentum. This unique indicator combination is color coded into the price bars or macd histogram bars for easy reference.
Calculation:
Green Price Bar: (13-period EMA > previous 13-period EMA) and
(MACD-Histogram > previous period's MACD-Histogram)
Red Price Bar: (13-period EMA < previous 13-period EMA) and
(MACD-Histogram < previous period's MACD-Histogram)
Histogram bars are colored blue when conditions for a Red Histogram Bar or Green Histogram Bar are not met. The MACD-Histogram is based on MACD(12,26,9).
The Impulse System works more like a censorship system. Green histogram bars show that the bulls are in control of both trend and momentum as both the 13-day EMA and MACD-Histogram are rising (you don't have permission to sell). A red histogram bar indicates that the bears have taken control because the 13-day EMA and MACD Histogram are falling (you don't have permission to buy). A blue histogram bar indicates mixed technical signals, with neither buying nor selling pressure predominating (either both buying or selling are permitted).
The impulse system can be removed from the chart any time.
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Options/adjustments for this indicator:
*Horizontal Distance (width) between two tops/bottoms criteria.
Refers to the horizontal distance between the MACH histogram peaks involved in the divergence
*Height of tops/bottoms criteria (for Histogram).
Refers to the difference/relation/vertical distance between the MACH HISTOGRAM peaks involved in the divergence: 1st Histogram Peak is X times the 2nd.
*Height/Vertical deviation of tops/bottoms criteria (for Price).
Deviation refers to the difference/relation/vertical distance between the PRICE peaks involved in the divergence.
*Plot Regular Bullish Divergences?.
*Plot Regular Bearish Divergences?.
*Delete Previous Cancelled Divergences?.
*This indicator also has the option to show the Impulse System over the MACD histogram bars
Extreme Reversal SignalThe Extreme Reversal Signal is designed to signal potential pivot points when the price of an asset becomes extremely overbought or oversold. Extreme conditions typically signal a brief or extensive price reversal, offering valuable entry or exit points. It's important to note that this indicator may produce multiple signals, making it essential to corroborate these signals with other forms of analysis to determine their validity. While the default settings provide valuable insights, it might be beneficial to experiment with different configurations to ensure the indicator's efficacy.
Two primary conditions define extremely overbought and oversold states. The first condition is that the price must deviate by two standard deviations from the 20-day Simple Moving Average (SMA). The second condition is that the 3-day SMA of the 14-day Stochastic Oscillator (STO) derived from the 14-day Relative Strength Index (RSI) is above or below the upper or lower limit.
Oversold states arise when the first condition is met and the 3-day SMA of the 14-day Stochastic RSI falls below the lower limit, suggesting a buy signal. These are visually represented by green triangles below the price bars. Overbought states arise when the first condition is met and the 3-day SMA of the 14-day Stochastic RSI rises above the upper limit, suggesting a sell signal. These are visually represented by red triangles above the price bars. It's also possible to set up automated alerts to get notifications when either of these two conditions is met to avoid missing out.
While this indicator has traditionally identified overbought and oversold conditions in various different assets, past performance does not guarantee future results. Therefore, it is advisable to supplement this indicator with other technical tools. For instance, trend indicators can greatly improve the decision-making process when planning for entries and exit points.
Double Relative Strength Index (Double RSI)# Double Relative Strength Index (Double RSI) Indicator
The Double Relative Strength Index (Double RSI) is a custom trading indicator for the TradingView platform. It provides traders with two Relative Strength Index (RSI) bands, a fast RSI, and a slow RSI, which can be helpful in identifying potential entry and exit points in the market.
## Features
- **Uses 2 RSI Bands:** The indicator displays two RSI lines on the chart, providing insights into the short-term and long-term strength of the asset's price movement.
- **Fast and Slow RSI:** The fast RSI uses a shorter length, while the slow RSI uses a longer length, allowing traders to observe different time frames of price momentum.
- **Smoothing:** To reduce noise and improve the readability of the RSI lines, the indicator offers multiple smoothing options such as RMA, SMA, EMA, WMA, and HMA.
- **Crossover and Crossunder Signals:** The indicator identifies potential trading signals when the fast RSI crosses above or below the slow RSI. These events are visually highlighted on the chart with color-coded candlesticks.
- **RSI Bands:** The indicator also includes colored bands that represent different RSI levels, such as 80%, 75%, 60%, 50%, 45%, 25%, and 20%. These bands help visualize the RSI's current position relative to overbought and oversold conditions.
## How to Use
1. Add the "Double RSI" indicator to your TradingView chart.
2. Customize the input parameters according to your preferences, such as the lengths of the fast and slow RSIs and the smoothing method.
3. The indicator will display two RSI lines on the chart, each with its own color.
4. Look for crossover events where the fast RSI line crosses above the slow RSI line, indicating a potential bullish signal.
5. Watch for crossunder events where the fast RSI line crosses below the slow RSI line, indicating a potential bearish signal.
6. The colored bands represent different RSI levels. When the RSI is in the overbought (high) or oversold (low) regions, it may suggest a potential reversal in price direction.
## Disclaimer
Please remember that the Double RSI indicator is provided for informational purposes only and should not be considered as financial advice or a standalone trading strategy. Always perform your own research, use additional tools and indicators, and consider risk management techniques before making any trading decisions.
**Note:** This code is subject to the terms of the Mozilla Public License 2.0. For more details, refer to the (mozilla.org).
Crude Oil Top and Bottoms -by Trevor GeallDiscover the Crude Oil Tops and Bottoms Predictor Indicator: Your Key to Market Precision!
How to Use:
Ideal for the daily chart. Wait for the colored background to form.
Confirm signals by waiting for the first candle to close after the background disappears. That would be your sign to go long (if the line is crossing up) or short (if line is crossing dow).
Combine with other indicators for enhanced insights.
Unveil Market Secrets:
Identifies potential tops and bottoms in crude oil.
Empowers strategic trading decisions.
Advanced divergence detection and price channel analysis.
Note: While powerful, no indicator guarantees perfect predictions. Use it alongside comprehensive analysis and risk management. Elevate your crude oil trading now!
PS If I get enough positive feedback on my indicators ill release some of the better ones.
ScalpTrader RSIThis script is a customized Relative Strength Index (RSI) indicator with added functionality, notably the optional Bollinger Bands overlay.
At its core, the script calculates the RSI, which is a popular momentum indicator used in technical analysis to identify overbought and oversold conditions. It does this by taking the average gain and the average loss over a user-defined period (default is 14) to compute the relative strength, which is then transformed into the RSI.
Furthermore, this script provides the option to overlay Bollinger Bands on the RSI line. Bollinger Bands, consisting of a middle band (a moving average) with two outer bands (standard deviations of the middle band), are used to measure volatility and 'relative' high or low prices. When applied to the RSI, they can offer another perspective on the momentum and volatility of the market.
RSI plot values are colored green if above 50 and red if below 50 to give the trader a sense of bullish or bearish price action.
I hope you find the indicator useful. Enjoy.
Qualitative Smoothed Strength Index***RSI CHART BELOW IS FOR COMPARSION TO SHOW HOE THEY MAKE SIMILIAR PATTERNS*** IT IS NOT PART OF THE INDICATOR***
The Qualitative Smoothed Strength Index (QSSI) is a simplified momentum oscillator whose values will oscillate between 0 and 1 . By converting price differences into binary values and smoothing them with a moving average, it identifies qualitative strength of price movements. This simplification allows traders to easily interpret trends and reversals. The QSSI offers advantages such as noise reduction, clear trend identification, and early signal detection, resulting in less lag compared to traditional oscillators. Traders can customize the indicator based on their preferences and use it across various markets.
QSSI Indicator uses the input function is used to define the input parameters of the indicator. In this case, there are two inputs:
length: The number of periods used for calculating the differences (a, b, c) and their assigned values. Default value is 5.
MAL: The length of the moving average used for smoothing the assigned values. Default value is 14.
The next few lines calculate 'a', 'b', and 'c', which represent the differences between the high, low, and close prices, respectively, and their corresponding previous simple moving averages (SMAs) of specified length. These differences are used to identify price movements.
The code assigns binary values (0 or 1) to a_assigned, b_assigned, and c_assigned, depending on whether the corresponding differences (a, b, c) are greater than 0. This step converts the differences into a binary representation, indicating upward or downward price movements.
Average_assigned calculates the average of the assigned binary values of a, b, and c. This average value represents the overall strength of the price movement.ma_assigned calculates the 14-day moving average of average_assigned, which smoothens the indicator and helps traders identify trends more easily.
The code plots the 14-day moving average (ma_assigned) on the chart as a blue line. It also plots the individual assigned values of a, b, and c as dots on the chart. a_assigned is shown in green, b_assigned in red, and c_assigned in black. These dots indicate the presence of upward or downward movements in the respective price components. By visualizing these dots on the chart, the trader can quickly identify the presence and direction of price movements for each of the price components. This information can be valuable for understanding how the different price elements (high, low, and close) are contributing to the overall trend and strength of the market. Traders can use this data to make more informed decisions, such as confirming the presence of trends, identifying potential reversals, or gauging the overall market sentiment based on the distribution of upward and downward movements across the price components.
Finally, the code draws horizontal dotted lines at levels 0.70 (0.8)and 0.30 (0.2). These levels are typically used to identify overbought (above 0.70 or 0.8) and oversold (below 0.30 or 0.2) conditions in the market.
The Qualitative Smoothed Strength Index (QSSI) provides traders with information about the strength and direction of price movements. By using assigned binary values, the indicator simplifies the interpretation of price data, making it easier to identify trends and potential reversals.
Trend Correlation Oscillator [SS]Hello,
Publishing this simple indicator.
What is it?
The Trend Correlation Oscillator takes the concept of my autocorrelation oscillator but applies it simply to time instead of autocorrelation.
It performs a correlation assessment to time. The theory behind it is the stronger the correlation, the more "exhausted" the trend and the more likely the trend will reverse. It is kind of building off of random walk theory in which the market should be random and efficient.
Does it work?
If you follow me on my indicator side, you will know that my indicators are all based on my own research and findings and stuff that I personally find that works. All of this comes from years of losing money trying to use conventional systems and finally developing my own stuff that I find works well. This is such an invention. It does work extremely well but its best applied for day traders. If you want to use this as a swing trader, play around with the lookback length. I don't have general recommendations to swing traders wanting to use this because this isn't an indicator I personally would use for swing trading (I would use the autocorrelation oscillator for that).
How to use it:
The default setting is to a 14 candle lookback. This works the best. It also should really be used on the 5 minute chart and not the 1 minute chart, as from my experience this works much better.
When a trend is approaching "exhaustion" to the upside, the indicator will turn red to let you know we are approaching a trend exhaustion. Once the exhaustion is at its peak and beginning to reverse, the indicator will place a cross symbol on where your entry should be. See the image below for an example:
It also works well if you combine it with my PTCR Correlation Indicator:
Closing thoughts
That is basically the indicator. Its one of my more simple ones, but many times simple is better and most effective!
Hopefully you find it helpful.
As always let me know your questions, comments and feedback/recommendations for improvements below.
Please know I do read and make note of all recommendations for indicators and improvements, however as it is just me managing them, it takes time for implementation and review :-).
Safe trades!
P/VF BollThis code draws a custom indicator named "P/VF Boll" on the price chart with the following visual elements:
1. **Basis Line (Blue)**: This line represents the moving average value (ma_value) calculated based on the user-selected moving average type (SMA, EMA, or WMA) and length.
2. **Upper Bands (Green)**: The upper bands are calculated by adding a certain multiple of the standard deviation (dev1 to dev12) to the basis line. These bands represent a certain level of price volatility above the moving average.
3. **Lower Bands (Red)**: The lower bands are calculated by subtracting a certain multiple of the standard deviation (dev1 to dev12) from the basis line. These bands represent a certain level of price volatility below the moving average.
4. **Histogram (White and Gray)**: A histogram is drawn only when the average_price_change values are outside the 3rd standard deviation (dev3) and beyond. The histogram color alternates between white and gray, indicating higher price volatility.
The user can customize the following parameters:
- Average Length: The length of the moving average.
- Moving Average Type: The type of moving average to be used (SMA, EMA, or WMA).
- Timeframe: The timeframe used to calculate volume data.
- Deviation 1 to Deviation 12: Multipliers for calculating the upper and lower bands.
The purpose of this indicator is to visually represent the relationship between price volatility, volume, and the moving average, allowing traders to assess potential price breakouts or reversals when the price moves beyond certain levels of standard deviations from the moving average.
RSI-Volume Oscillator Quick Scalping By Akhilesh PatelTitle: RSI-Volume Oscillator Quick Scalping Indicator
Description:
The "RSI-Volume Oscillator Quick Scalping" is a powerful and versatile custom indicator designed for traders who engage in scalping strategies. This indicator combines the Relative Strength Index (RSI) with a Volume Oscillator to provide valuable insights into momentum and volume dynamics in the market. Traders can also select their preferred moving average types (SMA, EMA, or HMA) to further customize the indicator's behavior.
Key Features:
RSI and Volume Oscillator Fusion: The indicator blends the RSI and a custom Volume Oscillator to offer a comprehensive view of both price momentum and volume trends. This integration provides valuable signals for quick scalping opportunities.
Customizable Moving Averages: Traders can choose from three popular moving average types (SMA, EMA, or HMA) for further customization. This flexibility allows users to align the indicator with their preferred trading strategies.
Clear Visualization: The Combined RSI-Volume Oscillator is plotted as a solid blue line, while the three selected moving averages are represented by orange, purple, and green lines, respectively. The zero line, overbought, and oversold levels for RSI are also indicated for easy reference.
Quick Scalping Signals: The indicator helps traders spot potential buy and sell signals efficiently, making it ideal for quick scalping strategies in rapidly moving markets.
Usage Instructions:
Customize the indicator by selecting your preferred RSI length, Volume Oscillator length, and moving average type (SMA, EMA, or HMA).
Observe the Combined RSI-Volume Oscillator and moving averages for potential entry and exit points.
Look for crossovers between the Combined RSI-Volume Oscillator and the selected moving averages for buy and sell signals.
The overbought (70) and oversold (30) levels for RSI can be used to identify potential reversal points.
Important Note:
Test the indicator on historical data and demo accounts before using it in live trading to ensure it aligns with your trading strategy.
Understand that no indicator guarantees profits, and trading involves risk. Always use proper risk management and discipline when executing trades.
Overall, the "RSI-Volume Oscillator Quick Scalping" indicator is a valuable addition to any scalper's toolkit, providing comprehensive insights into momentum and volume dynamics to enhance trading decisions. Happy scalping!
12&50 RSI + %R2/50 RSI+ %R is a PineScript indicator that combines two popular technical indicators, the Relative Strength Index (RSI) and the Williams %R. The indicator plots two lines, K and D, which represent the smoothed moving averages of the RSI. It also plots the RSI with a 60-period length and the Williams %R with a 21-period length. The indicator can be used to identify overbought and oversold conditions, as well as potential reversals.
Here are some of the key features of the script:
It uses two different RSI lengths to provide a more comprehensive view of the market.
It plots the Williams %R, which can be used to identify overbought and oversold conditions.
It includes overbought and oversold levels to help traders identify potential entry and exit points.
EMA Power BandsHello!
Today, I am delighted to introduce you to the "EMA Power Bands" indicator, designed to assist in identifying buying and selling points for assets moving in the markets.
Key Features of the Indicator:
EMA Bands: "EMA Power Bands" utilizes Exponential Moving Average (EMA) to create trend lines. These bands automatically expand or contract based on the price trend, adapting to market conditions.
ATR-Based Volatility: The indicator measures price volatility using the Average True Range (ATR) indicator, adjusting the width of the EMA bands accordingly. As a result, wider bands form during periods of increased volatility, while they narrow during lower volatility.
RSI-Based Buy-Sell Signals: "EMA Power Bands" uses the Relative Strength Index (RSI) to identify overbought and oversold zones. Entering the overbought zone generates a sell signal, while entering the oversold zone produces a buy signal.
Trend Direction Identification: The indicator assists in determining the price trend direction by analyzing the slope of the EMA bands. This allows you to identify periods of uptrends and downtrends.
Visualization of Buy-Sell Signals: "EMA Power Bands" visually marks the buy and sell signals:
- When RSI enters the overbought zone, it displays a sell signal (🪫).
- When RSI enters the oversold zone, it indicates a buy signal (🔋).
- When a candle closes above the emaup line, it displays a bearish signal (🔨).
- When a candle closes below the emadw line, it indicates a bullish signal (🚀).
By using the "EMA Power Bands" (EMA Güç Bantları) indicator, especially in trend-following strategies and periods of volatility, you can make more informed and disciplined trading decisions. However, I recommend using it in conjunction with other technical analysis tools and fundamental data.
*You can also use it with CCI as an example.
With this indicator, you can identify potential trend reversals in advance and strengthen your risk management strategies.
So, go ahead and try the "EMA Power Bands" (EMA Güç Bantları) indicator to enhance your technical analysis skills and make more informed trading decisions!
RSI Supreme Multi-Method [MyTradingCoder]Introducing the "RSI Supreme Multi-Method" indicator, a powerful tool that combines the Relative Strength Index (RSI) with selectable manipulation methods to identify overbought and oversold conditions in the market, along with the ability to detect divergences for enhanced trading insights.
The indicator features four distinct manipulation methods for the RSI, each providing valuable insights into market conditions:
1. Standard RSI Method: The indicator uses the traditional RSI calculation to identify overbought and oversold areas.
2. Volatility Weighted RSI Method: This method applies a volatility formula to the RSI calculation, allowing for a more responsive indication of market conditions during periods of heightened volatility. Users can adjust the length of the volatility formula to fine-tune this method.
3. Smoothed RSI Method: The smoothed RSI method utilizes a smoothing algorithm to reduce noise in the RSI values, presenting a clearer representation of overbought and oversold conditions. The length of the smoothing can be adjusted to match your trading preferences.
4. Session Weighted RSI Method: With this innovative method, users can specify multipliers for different time sessions throughout the day to manipulate the base RSI. Each session can be customized with start and end times, enabling or disabling specific sessions, and specifying the multiplier for each session. This feature allows traders to adapt the RSI to different market sessions dynamically.
Additionally, the "RSI Supreme Multi-Method" indicator draws divergences on the oscillator, providing an extra layer of analysis for traders. Divergences occur when the direction of the RSI differs from the direction of the price movement, potentially signaling trend reversals.
Key Settings:
RSI Length: Adjust the length of the base RSI before applying any manipulation.
RSI Source: Determine the data source for the base RSI calculation.
Overbought Value: Set the RSI value at which overbought conditions are indicated.
Oversold Value: Set the RSI value at which oversold conditions are indicated.
RSI Type: Choose from four options: Standard, Smoothed, Volatility Manipulated, or Session Manipulated.
Volatility Manipulated Settings: Adjust the length of the volatility formula (applicable to Volatility Manipulated method).
Smoothed Settings: Adjust the length of the smoothing (applicable to Smoothed method).
Session Manipulated Settings: Customize six different time sessions with start and end times, enable or disable specific sessions, and specify multipliers for each session.
Divergence Color: Adjust the color of the drawn divergences to suit your chart's aesthetics.
Divergence Tuning: Fine-tune the sensitivity of the divergence detection for more accurate signals.
The "RSI Supreme Multi-Method" indicator is a versatile and comprehensive tool that can be used to identify overbought and oversold areas, as well as to spot potential trend reversals through divergences. However, like all technical analysis tools, it should be used in conjunction with other indicators and analysis methods to make well-informed trading decisions.
Enhance your trading insights with the "RSI Supreme Multi-Method" indicator and gain an edge in identifying critical market conditions and divergences with precision.
AlexD Intraday market footprintThe indicator shows probability of a moving average non reversal at certain moment of day.
IMF_Predict line shows the probability of a reversal for the specified period.
moving average - period/2 shifted sma of typical price ( (close+high+low)/3 ).
Parameters:
Number of days - previous days to calculate the probability
SMA filter period - chart smoothing period
IMF smooth period - additional indicator smoothing after calculation
IMF predict period - period for calculating the probability of a reversal in the next N bars
Skip N hours in days(optimisation) - I recommend a half of the normal session time. Low values - long calculation time, High values - skipping days.
Anit Momentum IndicatorAnit Momentum Indicator: A Powerful Trend Continuation Tool for Long-Only Strategies
The "Anit Momentum Indicator" (AMI) is a powerful technical analysis tool designed to assist traders in identifying potential trend continuation opportunities in the financial markets. Unlike traditional trend reversal indicators, AMI is specifically crafted for long-only strategies, making it an ideal tool for traders seeking to capture sustained uptrends.
Concepts and Functionality:
1. Momentum Calculation:
The Anit Momentum Indicator begins by calculating the momentum of the closing price over a specified period. Momentum represents the rate of price change, offering clues about the strength and direction of price movements during the chosen duration.
2. RSI for Trend Continuation:
The script then applies the RSI to the previously computed momentum values. The RSI is a well-known oscillator used to measure the speed and magnitude of price changes. By utilizing the RSI on momentum data, the Anit Momentum Indicator gains a distinct advantage in gauging the strength of price momentum, leading to more accurate trend evaluations.
3. Rescaling for Better Visualization:
To enhance visual clarity and maintain consistent representation, the RSI on Momentum is rescaled to range from 0 to 100. This normalization ensures that the indicator's values remain within a fixed range, making it easier for traders to identify crucial overbought and oversold regions.
How to Use the Indicator:
Long-Only Strategy:
The AMI is most effective in long-only strategies. Traders can deploy the indicator to identify promising opportunities to go long on a stock or asset. A long position is established when the AMI crosses above 50, signaling a robust upward momentum.
Trend Continuation Confirmation:
The AMI's ability to capture trend continuation opportunities allows traders to stay invested in an uptrend for an extended period. As long as the AMI remains above 50, the uptrend is considered intact, and traders may continue to hold the position.
Higher Timeframe Advantage:
The AMI's effectiveness is further enhanced on higher timeframes. Longer timeframes provide a more reliable and sustained view of the underlying trend, giving traders greater confidence in their long-only strategies.
Conclusion:
The Anit Momentum Indicator is a valuable tool for traders pursuing trend continuation strategies, specifically long-only approaches. By leveraging the concept of momentum and RSI, the AMI helps traders identify and participate in sustained uptrends. With its focus on trend continuation rather than reversals, the AMI can be a key component in building successful long-only trading strategies, especially on higher timeframes. Traders can use this indicator to stay invested in robust uptrends, maximizing their profit potential while minimizing exposure to counter-trend moves by staying long till AMI value is greater than 50,it is better to stay away or exit from the asst class when AMI value is less than 50.
Normalized Close IndicatorThe central aspect of this indicator is the computation of a normalized close price. The normalized close price is computed by first determining the highest and lowest closing prices over a specified historical period. This highest and lowest value form the boundaries of the historical price range.
Once these bounds are established, the current closing price's position within this range is calculated. This is done by subtracting the lowest close from the current close and dividing the result by the range (the highest close minus the lowest close). This yields a value between 0 and 1, which is then multiplied by 100 to provide a percentage. This is not calculating percentile rank, but often it overlaps.
This percentage represents where the current close price stands relative to the historical price range. If the value is near 0, it indicates that the current close price is near the historical low, potentially signaling an oversold condition. Conversely, if the value is near 100, it suggests that the current close price is near the historical high, possibly indicating an overbought condition.
By using this approach, the indicator helps identify points at which the price may be considered relatively high (overbought) or low (oversold) compared to its recent historical range.
Additionally alerts are to switch from long to short and vice versa, for the most part, my strategy that incorporates this indicator is either long or short, sometimes though, the opposite bounds (high level for longs and low level for shorts) are not reached, then stop loss and take profit levels are needed.
I discovered it works fine on markets that spend most of time in a range like BTC/USD, adjustment needs to be done in user inputs and in Pine Script (length) for different exchanges, in current configuration works fine for me on Deribit Perpetuals (BTCUSD.P and ETHUSD.P), on 5 minute and 3 minute timeframes with a stop loss of 1.5% and take profit of 4.5% for BTCUSD.P and 1.7% and 5.1% for ETHUSD.P.
Price Acceleration Indicator (PAI)I have designed a "Price Acceleration" Indicator (PAI). It tracks the second derivative in price movements. This is different from ROC as that one measures Price Velocity rather than Acceleration. This Indicator should give you an idea of when the steam has come out of a move, or when one is getting started. For example, if RSI is reaching overbought, and PAI is Negative, that means the move is slowing down and likely to give in to the opposite direction soon.
OnChart_RSI💡 RSI superimposed on the chart!
👉 This indicator clearly shows the overbought and oversold zones directly on the chart of any instrument!
The RSI settings are standard.
In the settings menu, the RSI length and data type are set. In addition, the lower and upper boundaries are set.
The values of the boundaries and the RSI index are automatically adapted to the price of the instrument.
Thus, the boundaries of UP and DN form a kind of price channel and are displayed on the chart with a red and green line.
The RSI value is the yellow line.
The colors of the lines can be changed in the Style menu.
The exit of the RSI line above the upper limit (UP) indicates the entry of the price into the overbought zone (here you should look for a sale), the exit below the lower limit (DN) indicates the entry into the oversold zone (here you should look for purchases).
The return of the RSI from the overbought zone or from the oversold zone into the trading channel is marked on the chart with triangles and has a built-in alert.
When the price is fixed beyond the upper limit of UP, an uptrend is activated, and when fixed beyond the lower limit of DN, a downtrend is activated. The trend direction is highlighted by filling the channel (Show TREND in the settings menu).
The trend change also has a built-in alert.
👉 I wish everyone a profit and be sure to follow risk management in trading!
For any questions, you can write to me in private messages or by the contacts in my signature.
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💡 RSI наложенный на график!
👉 Данный индикатор наглядно показывает зоны перекупленности и перепроданности непосредственно на графике любого инструмента!
Параметры настройки RSI - стандартные.
В меню настройки задаётся длина RSI и тип данных. Кроме этого задаются нижняя и верхняя границы.
Значения границ и индекса RSI автоматически адаптируются под цену инструмента.
Таким образом, границы UP и DN образуют некий ценовой канал и отображаются на графике красной и зеленой линией.
Значение RSI - желтая линия.
Цвета линий можно изменить в меню "Стиль".
Выход линии RSI выше верхней границы (UP) говорит о входе цены в зону перекупленности (здесь следует искать продажу), выход ниже нижней границы (DN) говорит о входе в зону перепроданности (здесь следует искать покупки).
Возврат RSI из зоны перекупленности или из зоны перепроданности внутрь торгового канала - отмечается на графике треугольниками и имеет встроенное оповещение.
При закреплении ценой за верхней границей UP, активируется восходящий тренд, а при закреплении за нижней границей DN - нисходящий. Направление тренда подсвечивается заливкой канала (Show TREND в меню настроек).
Смена тренда также имеет встроенное оповещение.
👉 Желаю всем профита и обязательно соблюдайте риск-менеджмент в торговле!
По любым вопросам Вы можете написать мне в личные сообщения или по контактам в моей подписи.
