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IQ Zones [TradingIQ]Hey Traders! Introducing "IQ Zones". "IQ Zones" is an indicator that combines support and resistance identification with volume, the "value area" of a candlestick to be exact. IQ Zones identifies turning points in the market; however, the candlestick high or low that formed the key turning point is not necessarily distinguished as the support/resistance area. Instead, the script looks into the bar at lower timeframes and calculates the value area of the candlestick that formed the support or resistance level. Therefore, any lines protruding from a candlestick reflect the value area of that candlestick. These levels (value area high and value area low) are marked on the candlestick as a support/resistance level. If the level formed on high volume it's marked as an "IQ Zone". Additionally, IQ Zones presents a heat map to show volume intensity at nearby price areas. The heatmap is a product of the Volume Profile (IQ Profile) located on the right of the chart. The IQ Profile is a segmented volume profile. Recent price is split into fifths (customizable), and individual volume profiles are calculated for all segmented price areas. Price is split into more than one segment to avoid a situation where volume in a ranging price zone far surpasses all other recent price areas - creating an "unusable" volume profile that doesn't offer helpful insights. If desired, you can set the segmenting option to "1" to calculate one unified volume profile for the entire price range. The image above shows IQ Zones in action! Core Features of IQ Zones Value Area Support and Resistance Levels Segmented volume profile for the recent trading period Volume intensity heatmap Support and resistance levels in high volume intensity may be more significant as price stoppers The image above explains the labels marked along the y-axis of the IQ Profile. The "more green" a price area/label is, the higher the volume intensity at the marked support/resistance area. The image above further explains line lines protruding from the IQ Profile. For this example, the value area of the candlestick (where most trading action occurred) is quite far from the high price of the candlestick that formed a resistance level! Using the value area of a candlestick that marks a key turning point to draw support/resistance offers insight into where the majority of trading action took place when the support/resistance level was forming! Additionally, you can hover your mouse over the IQ Zone labels (triangles pointing up or down) to see the prices of the value area for the support/resistance level, including the total buying volume and total selling volume at the price area! The image above further explains the IQ Profile! You can segment the recent price area anywhere from 1 - 15 times. The image above further explains IQ Zones and the IQ Profile! That will be all for this indicator - a fun project to share with the community. Thank you!
Pine Script™ indicator
by Trading-IQ
2
TechniTrend: Volume and Momentum Analysis (Weighted)Description: The TechniTrend: Volume and Momentum Analysis indicator combines volume analysis with multiple momentum indicators to provide a holistic view of market conditions. By integrating Weighted Relative Strength Index (RSI), Rate of Change (ROC), and Stochastic Oscillator (%K and %D), this indicator offers a comprehensive, blended signal that responds to both price momentum and volume trends. Ideal for identifying potential reversal zones, overbought/oversold conditions, and divergence patterns. Features: Volume and Momentum Analysis: The core of this indicator is a "Combined Analysis Line" that integrates various momentum indicators, each weighted according to user-defined preferences. This line allows for dynamic responsiveness based on selected weightings for RSI, ROC, and Stochastic, making it highly customizable. High Volume Area Highlight: Periods of high trading volume (above the threshold defined by Volume Threshold Factor) are highlighted on the chart's background. This feature aids in identifying volume-driven price actions, especially when combined with overbought/oversold signals from the Combined Analysis Line. Divergence Detection System: Regular bullish and bearish divergence patterns are automatically detected and marked on the chart. The indicator uses a pivot-based approach with user-adjustable lookback periods to identify divergence patterns, helping traders spot potential reversal points. Overbought/Oversold Zones: The indicator displays overbought and oversold zones with gradient fills based on user-defined thresholds, enhancing visibility and helping to gauge market momentum. Alert System: Built-in alerts notify the trader when a regular bullish or bearish divergence is detected. This feature is especially useful for monitoring the market passively and receiving timely alerts for potential trend changes. Settings: Volume MA Length: Defines the length of the moving average used to smooth out volume data. Momentum Length: Length for calculating the momentum indicators (e.g., RSI). Volume Threshold Factor: Multiplier for determining high-volume levels, setting the bar for significant volume. Weight Parameters: Assign weight percentages to each momentum indicator for precise calibration of the Combined Analysis Line. Overbought/Oversold Thresholds: Adjusts the levels at which overbought and oversold conditions are displayed, providing custom sensitivity to market extremes. Divergence Settings: Adjustable lookback periods for detecting divergence patterns, along with upper and lower ranges, which fine-tune the search for divergence points. This indicator is highly configurable and offers a nuanced view of market conditions by combining volume and momentum signals. Designed to assist in identifying potential entry and exit points, the TechniTrend: Volume and Momentum Analysis is a powerful tool for both short-term and long-term traders.
Pine Script™ indicator
by itsKraken
Gap Finder with Box FillSetup and Inputs The indicator checks the current and previous candles to find gaps, using a color input for filling the gap area on the chart. Gap Detection: If the current candle opens higher than the previous close and doesn’t overlap with the previous candle’s range, it marks this as a gap-up. If the current candle opens lower than the previous close without overlap, it’s marked as a gap-down. Drawing the Gap: When a gap-up or gap-down is found, the script draws a box from the previous close to the current candle’s low or high, filling it with the chosen color. Benefits Visual Aid: The filled box highlights gaps, making them easy to spot on the chart. Trade Signals: Gaps can show strong market moves, helping traders spot potential entries or watch for reversals. Customizable: You can adjust the color to fit your chart style, making the gaps stand out clearly. This simple tool gives traders a quick view of gaps, which are often key points of interest in technical analysis.
Pine Script™ indicator
by Almureqeeb
Trend Change Detection by SpotTheTrendThis script identifies potential trend changes by analyzing volume, RSI, and EMA indicators, with a built-in cool-down to avoid consecutive signals. █  OVERVIEW The "Trend Change Detection" script helps traders identify potential shifts in market direction by analyzing specific conditions in volume, RSI, and EMA. A cool-down period between signals minimizes noise, providing clearer entry signals. █  CONCEPTS Unlike many indicators that produce frequent signals, this script’s cool-down feature filters out consecutive signals, focusing on quality over quantity. This approach reduces premature entries and potential false signals, making it a valuable tool for more disciplined trading. The main idea of this indicator is to help in risk management and drawdown reduction by enforcing selectivity, the cool-down period helps prevent over-trading in volatile or sideways markets, which can reduce exposure to extended drawdowns. This functionality supports more prudent trade entries, aligning with risk management strategies for improved trading outcomes. We can take a look at the NASDAQ:NVDA chart as an example of a potential long position: The main trend is bullish. While some might enter directly, avoiding drawdowns may suit others’ trading styles better:: • FEATURES Bullish and Bearish Signals: Displays potential trend changes with bullish signals marked as green dots and bearish signals as red dots directly on the chart. Cool-down Period: Reduces noise by limiting consecutive signals. Visual Indicators: Colors bars by trend direction for quick visual reference. • HOW TO USE Bullish Signals: Indicated by green dots above bars, suggesting potential long opportunities. Bearish Signals: Indicated by red dots below bars, suggesting potential short opportunities. I created the "Trend Change Detection" indicator with the hope that it becomes a valuable part of your trading toolkit, helping you monitor trends with clarity and manage risk more effectively. • DISCLAIMER This tool is for informational purposes only. Always perform thorough analysis before entering trades.
Pine Script™ indicator
by David_874
Austin's Apex AcceleratorIndicator Name: Austin’s Apex Accelerator Overview The Austin’s Apex Accelerator is a highly aggressive trading indicator designed specifically for high-frequency Forex trading. It combines several technical analysis tools to identify rapid entry and exit points, making it well-suited for intraday or even lower timeframe trades. The indicator leverages a combination of exponential moving averages (EMAs), Bollinger Bands, volume filters, and volatility-adjusted ranges to detect breakout opportunities and manage risk with precision. Core Components Fast and Slow EMAs: The two EMAs act as trend and momentum indicators. When the shorter EMA crosses the longer EMA, it signals a change in momentum. The crossover of these EMAs often indicates a potential entry point, especially when combined with volume and volatility filters. ATR-Based Range Filter: Using the Average True Range (ATR) for dynamic range calculation, the indicator adapts to market volatility. Higher ATR values widen the range, helping the indicator adjust for volatile conditions. Volume Filter: A volume condition ensures that buy and sell signals only trigger when there’s significant market interest, reducing the likelihood of false signals in low-liquidity environments. Bollinger Bands: The Bollinger Bands provide additional context for potential overbought or oversold conditions, highlighting opportunities for price reversals or trend continuations. Key Features Aggressive Buy and Sell Signals: Buy Signal: A buy signal is generated when the fast EMA crosses above the slow EMA, confirming bullish momentum, and the volume condition is met. If the price is also near the lower Bollinger Band, it adds further confirmation of an oversold condition. Sell Signal: A sell signal is generated when the fast EMA crosses below the slow EMA, confirming bearish momentum, with sufficient trading volume. If the price is near the upper Bollinger Band, it signals a potential overbought condition, which supports the sell signal. Dynamic Range with ATR: The indicator uses a volatility-based range, derived from the ATR, to adjust the signal sensitivity based on recent price fluctuations. This dynamic range ensures that signals are responsive in both high and low volatility conditions. The range’s upper and lower bands act as thresholds, with trades often occurring when the price breaches these levels, signaling momentum shifts or trend reversals. Trend Background Color: A green background highlights bullish trends when the fast EMA is above the slow EMA. A red background signifies bearish trends when the fast EMA is below the slow EMA, providing a visual indication of the overall market trend direction. Trend Line: The indicator plots a dynamic trend line that changes color based on the price's relationship to the EMAs, helping traders quickly assess the current trend’s strength and direction. Alerts: The indicator includes configurable alerts for buy and sell signals, allowing traders to be notified of entry opportunities without needing to monitor the chart continuously. How to Use Austin’s Apex Accelerator Identify Entry Points: Buy Entry: When the fast EMA crosses above the slow EMA, a buy signal is triggered. Confirm this signal by checking if the price is near or below the lower Bollinger Band (indicating an oversold condition) and if trading volume meets the set threshold. Sell Entry: When the fast EMA crosses below the slow EMA, a sell signal is triggered. Confirm the signal by ensuring the price is near or above the upper Bollinger Band (suggesting an overbought condition) and that volume is sufficient. Exit Strategy: Take Profit: The take profit level is calculated as 1.5 times the ATR from the entry point. This ensures that each trade aims to achieve a positive risk/reward ratio. Stop Loss: The stop loss is set at 1 ATR from the entry, providing a tight risk control mechanism that limits potential losses on each trade. Trend Identification and Background Colors: Use the background colors to assess the trend direction. A green background indicates a bullish trend, while a red background suggests a bearish trend. These colors can help you filter signals that go against the trend, increasing the chances of a successful trade. Volume Confirmation: This indicator has an inbuilt volume filter to prevent trading in low-volume conditions. Look for signals only when volume exceeds the average volume threshold, which is set by the multiplier. This helps avoid trading during quieter times when false signals are more likely. Alerts: Set up alerts for buy and sell signals to be notified in real-time whenever a new trading opportunity arises, so you can act on high-quality signals promptly. Practical Tips for Using Austin’s Apex Accelerator Timeframe: Best suited for short timeframes such as 5-minute or 15-minute charts for high-frequency trading.
Pine Script™ indicator
by paulaustin3977
Volume StatsDescription: Volume Stats displays volume data and statistics for every day of the year, and is designed to work on "1D" timeframe. The data is displayed in a table with columns being months of the year, and rows being days of each month. By default, latest data is displayed, but you have an option to switch to data of the previous year as well. The statistics displayed for each day is: - volume - % of total yearly volume - % of total monthly volume The statistics displayed for each column (month) is: - monthly volume - % of total yearly volume - sentiment (was there more bullish or bearish volume?) - min volume (on which day of the month was the min volume) - max volume (on which day of the month was the max volume) The cells change their colors depending on whether the volume is bullish or bearish, and what % of total volume the current cell has (either yearly or monthly). The header cells also change their color (based either on sentiment or what % of yearly volume the current month has). This is the first (and free) version of the indicator, and I'm planning to create a "PRO" version of this indicator in future. Parameters: - Timezone - Cell data -> which data to display in the cells (no data, volume or percentage) - Highlight min and max volume -> if checked, cells with min and max volume (either monthly or yearly) will be highlighted with a dot or letter (depending on the "Cell data" input) - Cell stats mode -> which data to use for color and % calculation (All data = yearly, Column = monthly) - Display data from previous year -> if checked, the data from previous year will be used - Header color is calculated from -> either sentiment or % of the yearly volume - Reverse theme -> the table colors are automatically changed based on the "Dark mode" of Tradingview, this checkbox reverses the logic (so that darker colors will be used when "Dark mode" is off, and lighter colors when it's on) - Hide logo -> hides the cat logo (PLEASE DO NOT HIDE THE CAT) Conclusion: Let me know what you think of the indicator. As I said, I'm planning to make a PRO version with more features, for which I already have some ideas, but if you have any suggestions, please let me know.
Pine Script™ indicator
by sabricat
Volume Disharmony IndicatorThis indicator is designed to detect imbalanced volume compared to the open/close of the corresponding candle body. The idea is that institutions often trade in higher volume within a smaller price range. Identifying these can give an indication if there is a rally or selloff happening. The code looks at the median of all the prior candles from the point of the last trigger and compares them to the range in body of the candles in order to dynamically find a baseline, by which imbalances can be more accurately detected throughout changing market conditions.
Pine Script™ indicator
by nmountford
Up/Down Volume with Normal DistributionThis indicator analyzes the relationship between price movements and trading volume by distinguishing between "up" and "down" volume. Up volume refers to trading volume occurring during price increases, while down volume refers to trading volume during price decreases. The indicator calculates the mean and standard deviation for both up and down volume over a specified length. This statistical approach enables traders to visualize volume deviations from the average, highlighting potential market anomalies that could signal trading opportunities. Relationship Between Price and Volume Volume is a critical metric in technical analysis, often considered a leading indicator of price movements. According to studies in financial economics, significant price changes accompanied by high volume tend to indicate strong market conviction (Wyart et al., 2008). Conversely, price changes on low volume may suggest a lack of interest or conviction, making those moves less reliable. The relationship between price and volume can be summarized as follows: Confirmation of Trends: High volume accompanying a price increase often confirms an upward trend. Similarly, high volume during price declines indicates bearish sentiment. Reversals and Exhaustion: Decreases in volume during price increases may suggest a potential reversal or exhaustion of buying pressure, while increased volume during declines can indicate capitulation. Breakouts: Price movements that break through significant resistance or support levels accompanied by high volume are typically more significant and suggest stronger follow-through in the new direction. Developing a Trading Strategy Traders can leverage the insights gained from this relationship to formulate a trading strategy based on volume analysis: Entry Signals: Traders can enter long positions when the up volume significantly exceeds the mean by a predefined number of standard deviations. This situation indicates strong buying interest. Conversely, short positions can be initiated when down volume exceeds the mean by a specified standard deviation. Exit Signals: Exiting positions can be based on changes in volume patterns. If the volume starts to decrease significantly after a price increase, this may signal a potential reversal or the need to lock in profits. Risk Management: Integrating volume analysis with other technical indicators, such as moving averages or RSI, can provide a more comprehensive risk management framework, enhancing the overall effectiveness of the strategy. In conclusion, understanding the relationship between price and volume, alongside employing statistical measures like the mean and standard deviation, enables traders to create more robust trading strategies that capitalize on market movements. References Wyart, M., Bouchaud, J.-P., & Dacorogna, M. (2008). "Self-organized volatility in a complicated market." European Physical Journal B, 61(2), 195-203. doi:10.1140
Pine Script™ indicator
by EdgeTools
Volume-Adjusted Schaff Trend Cycle (VASTC)Volume-Adjusted Schaff Trend Cycle (VASTC) The VASTC is a fairly fast-moving oscillator designed to identify trends early and signal when trends may be nearing their end. While it can be used for both trend-following and mean-reversion strategies , it shines in trend-following setups. It’s particularly useful for catching the start of a trend and giving early warnings that a trend might end soon, making it a valuable addition to a multi-indicator system. How It Works: The VASTC adapts the traditional Schaff Trend Cycle by adjusting the MACD component with volume data. This volume-adjusted MACD is run through two stochastic processes , applying exponential smoothing to enhance responsiveness. Volume sensitivity allows the VASTC to adapt dynamically to periods of high or low trading activity, providing more reliable trend signals. Recommended Use: Use VASTC in confluence with other indicators to confirm trend entries and exits. It’s best for identifying early trend setups rather than sustaining prolonged trend trades. When used alongside other indicators, especially those with a longer-term outlook or momentum based trend indicators, you’ll gain a clearer signal for potential exits or entries. Always backtest the VASTC on your chosen assets to determine the most effective input parameters, as the defaults may not suit all markets or assets. Different assets behave differently, and adjustments in parameters can improve its ability to analyze the assets you're looking at. Parameters: Length : Sets the primary smoothing length. Fast/Slow Length : Adjust the speed of the volume-adjusted MACD component. Factor : Controls the final smoothing applied to the STC. Overbought/Oversold Levels : Defines overbought/oversold levels. Experiment with these settings to customize the VASTC to your trading strategy and asset. Disclaimer : This indicator is a tool to complement your trading analysis and should not be used in isolation. Always backtest and use other confluence signals for best results. The assets I looked at when making this indicator are almost certainly different than what you're looking at.
Pine Script™ indicator
by nathanfarmer
VWAP it GOODWhy: Instead of having 5 individual VWAP indicators, I found it beneficial for one view with a clean display. This VWAP indicator combines the daily, weekly, monthly, quarterly and annual into one color coded view. These colors and styles can be modified by the user. A user can turn any timeframe off, but this is how I personally like to trade since it helps me better understand potential bounce or pullback areas. Do your own research for what is best for you.
Pine Script™ indicator
by GM_Trading100
Advanced VWAP [CryptoSea]The Advanced VWAP is a comprehensive volume-weighted average price (VWAP) tool designed to provide traders with a deeper understanding of market trends through multi-layered VWAP analysis. This indicator is ideal for those who want to track price movements in relation to VWAP bands and detect key market levels with greater precision. Key Features Multi-Timeframe VWAP Bands: Includes multiple VWAP bands with different lookback periods (5, 10, 25, and 50), allowing traders to observe short-term and long-term price behavior. Smoothed Band Options: Offers optional smoothing of VWAP bands to reduce noise and highlight significant trends more clearly. Dynamic Median Line Display: Plots the median line of the VWAP bands, providing a reference for price movements and potential reversal zones. VWAP Trend Strength Calculation: Measures the strength of the trend based on the price's position relative to the VWAP bands, normalized between -1 and 1 for easier interpretation. In the example below we can see the VWAP Forecastd Cloud, which consists of multiple layers of VWAP bands with varying lookback periods, creating a dynamic forecast visualization. The cloud structure represents potential future price ranges by projecting VWAP-based bands outward, with darker areas indicating higher density and overlap of the bands, suggesting stronger support or resistance zones. This approach helps traders anticipate price movement and identify areas of potential consolidation or breakout as the price interacts with different layers of the forecast cloud. How it Works VWAP Calculation: Utilizes multiple VWAP calculations based on various lookback periods to capture a broad range of price behaviors. The indicator adapts to different market conditions by switching between short-term and long-term VWAP references. Smoothing Algorithms: Provides the ability to smooth the VWAP bands using different moving average types (SMA, EMA, SMMA, WMA, VWMA) to suit various trading strategies and reduce market noise. Trend Strength Analysis: Computes the trend strength based on the price's distance from the VWAP bands, with a value range of -1 to 1. This feature helps traders identify the intensity of uptrends and downtrends. Alert Conditions: Includes alert options for crossing above or below the smoothed median line, as well as touching the smoothed upper or lower bands, providing timely notifications for potential trading opportunities. This image below illustrates the use of smoothed VWAP bands, which provide a cleaner representation of the price's relationship to the VWAP by reducing market noise. The smoothed bands create a flowing cloud-like structure, making it easier to observe significant trends and potential reversal points. The circles highlight areas where the price interacts with the smoothed bands, indicating potential key levels for trend continuation or reversal. This setup helps traders focus on meaningful movements and filter out minor fluctuations, improving the identification of strategic entry and exit points based on smoother trend signals. Application Strategic Entry and Exit Points: Helps traders identify optimal entry and exit points based on the interaction with VWAP bands and trend strength readings. Trend Confirmation: Assists in confirming trend strength by analyzing price movements relative to the VWAP bands and detecting significant breaks or touches. Customized Analysis: Supports a wide range of trading styles by offering adjustable smoothing, band settings, and alert conditions to meet specific trading needs. The Advanced VWAP by is a valuable addition to any trader's toolkit, offering versatile features to navigate different market scenarios with confidence. Whether used for day trading or longer-term analysis, this tool enhances decision-making by providing a robust view of price behavior relative to VWAP levels.
Pine Script™ indicator
by CryptoSeaTV
VOLUME DIRECTION INDICATORDesigned for the 1-hour chart, this indicator shows: Green Line: Volume when price rises, suggesting buying. Red Line: Volume when price falls, indicating selling. How to Use: Watch for Crossover: When the Green Line moves above the Red, it might signal a budding uptrend. Check Retracement: If the Green Line pulls back but stays above the Red, the uptrend could be strengthening. Price Check: Look for a small price drop but not a reversal. Trade Entry: Enter at the high of the retracement candle. Or wait for the Green Line to rise again. For Precision: Draw a line at the retracement peak and switch to a shorter timeframe to find entry patterns above this line. Remember: Use this with other tools for better trading decisions. The Volume Direction Indicator provides a visual representation of market activity by assuming volume can be attributed to buying or selling based on price action within each bar. When the price closes higher than it opened, the volume for that period is considered as 'Bought Shares', plotted in green. Conversely, if the price closes lower, the volume is treated as 'Sold Shares', shown in red. This indicator resets daily to give a fresh perspective on trading activity each day. Key Features: Buying Pressure: Green line represents the cumulative volume during periods where the price increased. Selling Pressure: Red line indicates the cumulative volume during price decreases. Daily Reset: Accumulated values reset at the start of each new trading day, focusing on daily market sentiment. Note: This indicator simplifies market dynamics by linking volume directly to price changes. It does not account for complex trading scenarios like short selling or market manipulations. Use this indicator as a tool to gauge general market direction and activity, not for precise transaction data.
Pine Script™ indicator
by pdhernandez
CMF and Scaled EFI OverlayCMF and Scaled EFI Overlay Indicator Overview The CMF and Scaled EFI Overlay indicator combines the Chaikin Money Flow (CMF) and a scaled version of the Elder Force Index (EFI) into a single chart. This allows traders to analyze both indicators simultaneously, facilitating better insights into market momentum and volume dynamics , specifically focusing on buying/selling pressure and momentum , without compromising the integrity of either indicator. Purpose Chaikin Money Flow (CMF): Measures buying and selling pressure by evaluating price and volume over a specified period. It indicates accumulation (buying pressure) when values are positive and distribution (selling pressure) when values are negative. Elder Force Index (EFI): Combines price changes and volume to assess the momentum behind market moves. Positive values indicate upward momentum (prices rising with strong volume), while negative values indicate downward momentum (prices falling with strong volume). By scaling the EFI to match the amplitude of the CMF, this indicator enables a direct comparison between pressure and momentum , preserving their shapes and zero crossings. Traders can observe the relationship between price movements, volume, and momentum more effectively, aiding in decision-making. Understanding Pressure vs. Momentum Chaikin Money Flow (CMF): - Indicates the level of demand (buying pressure) or supply (selling pressure) in the market based on volume and price movements. - Accumulation: When institutional or large investors are buying significant amounts of an asset, leading to an increase in buying pressure. - Distribution: When these investors are selling off their holdings, increasing selling pressure. Elder Force Index (EFI): - Measures the strength and speed of price movements, indicating how forceful the current trend is. - Positive Momentum: Prices are rising quickly, indicating a strong uptrend. - Negative Momentum: Prices are falling rapidly, indicating a strong downtrend. Understanding the difference between pressure and momentum is crucial. For example, a market may exhibit strong buying pressure (positive CMF) but weak momentum (low EFI), suggesting accumulation without significant price movement yet. Features Overlay of CMF and Scaled EFI: Both indicators are plotted on the same chart for easy comparison of pressure and momentum dynamics. Customizable Parameters: Adjust lengths for CMF and EFI calculations and fine-tune the scaling factor for optimal alignment. Preserved Indicator Integrity: The scaling method preserves the shape and zero crossings of the EFI, ensuring accurate analysis. How It Works CMF Calculation: - Calculates the Money Flow Multiplier (MFM) and Money Flow Volume (MFV) to assess buying and selling pressure. - CMF is computed by summing the MFV over the specified length and dividing by the sum of volume over the same period: CMF = (Sum of MFV over n periods) / (Sum of Volume over n periods) EFI Calculation: - Calculates the EFI using the Exponential Moving Average (EMA) of the price change multiplied by volume: EFI = EMA(n, Change in Close * Volume) Scaling the EFI: - The EFI is scaled by multiplying it with a user-defined scaling factor to match the CMF's amplitude. Plotting: - Both the CMF and the scaled EFI are plotted on the same chart. - A zero line is included for reference, aiding in identifying crossovers and divergences. Indicator Settings Inputs CMF Length (`cmf_length`): - Default: 20 - Description: The number of periods over which the CMF is calculated. A higher value smooths the indicator but may delay signals. EFI Length (`efi_length`): - Default: 13 - Description: The EMA length for the EFI calculation. Adjusting this value affects the sensitivity of the EFI to price changes. EFI Scaling Factor (`efi_scaling_factor`): - Default: 0.000001 - Description: A constant used to scale the EFI to match the CMF's amplitude. Fine-tuning this value ensures the indicators align visually. How to Adjust the EFI Scaling Factor Start with the Default Value: - Begin with the default scaling factor of `0.000001`. Visual Inspection: - Observe the plotted indicators. If the EFI appears too large or small compared to the CMF, proceed to adjust the scaling factor. Fine-Tune the Scaling Factor: - Increase or decrease the scaling factor incrementally (e.g., `0.000005`, `0.00001`, `0.00005`) until the amplitudes of the CMF and EFI visually align. - The optimal scaling factor may vary depending on the asset and timeframe. Verify Alignment: - Ensure that the scaled EFI preserves the shape and zero crossings of the original EFI. - Overlay the original EFI (if desired) to confirm alignment. How to Use the Indicator Analyze Buying/Selling Pressure and Momentum: - Positive CMF (>0): Indicates accumulation (buying pressure). - Negative CMF (<0): Indicates distribution (selling pressure). - Positive EFI: Indicates positive momentum (prices rising with strong volume). - Negative EFI: Indicates negative momentum (prices falling with strong volume). Look for Indicator Alignment: - Both CMF and EFI Positive: - Suggests strong bullish conditions with both buying pressure and upward momentum. - Both CMF and EFI Negative: - Indicates strong bearish conditions with selling pressure and downward momentum. Identify Divergences: - CMF Positive, EFI Negative: - Buying pressure exists, but momentum is negative; potential for a bullish reversal if momentum shifts. - CMF Negative, EFI Positive: - Selling pressure exists despite rising prices; caution advised as it may indicate a potential bearish reversal. Confirm Signals with Other Analysis: - Use this indicator in conjunction with other technical analysis tools (e.g., trend lines, support/resistance levels) to confirm trading decisions. Example Usage Scenario 1: Bullish Alignment - CMF Positive: Indicates accumulation (buying pressure). - EFI Positive and Increasing: Shows strengthening upward momentum. - Interpretation: - Strong bullish signal suggesting that buyers are active, and the price is likely to continue rising. - Action: - Consider entering a long position or adding to existing ones. Scenario 2: Bearish Divergence - CMF Negative: Indicates distribution (selling pressure). - EFI Positive but Decreasing: Momentum is positive but weakening. - Interpretation: - Potential bearish reversal; price may be rising but underlying selling pressure suggests caution. - Action: - Be cautious with long positions; consider tightening stop-losses or preparing for a possible trend reversal. Tips Adjust for Different Assets: - The optimal scaling factor may differ across assets due to varying price and volume characteristics. - Always adjust the scaling factor when analyzing a new asset. Monitor Indicator Crossovers: - Crossings above or below the zero line can signal potential trend changes. Watch for Divergences: - Divergences between the CMF and EFI can provide early warning signs of trend reversals. Combine with Other Indicators: - Enhance your analysis by combining this overlay with other indicators like moving averages, RSI, or Ichimoku Cloud. Limitations Scaling Factor Sensitivity: - An incorrect scaling factor may misalign the indicators, leading to inaccurate interpretations. - Regular adjustments may be necessary when switching between different assets or timeframes. Not a Standalone Indicator: - Should be used as part of a comprehensive trading strategy. - Always consider other market factors and indicators before making trading decisions. Disclaimer No Guarantee of Performance: - Past performance is not indicative of future results. - Trading involves risk, and losses can exceed deposits. Use at Your Own Risk: - This indicator is provided for educational purposes. - The author is not responsible for any financial losses incurred while using this indicator. Code Summary //@version=5 indicator(title="CMF and Scaled EFI Overlay", shorttitle="CMF & Scaled EFI", overlay=false) cmf_length = input.int(20, minval=1, title="CMF Length") efi_length = input.int(13, minval=1, title="EFI Length") efi_scaling_factor = input.float(0.000001, title="EFI Scaling Factor", minval=0.0, step=0.000001) // --- CMF Calculation --- ad = high != low ? ((2 * close - low - high) / (high - low)) * volume : 0 mf = math.sum(ad, cmf_length) / math.sum(volume, cmf_length) // --- EFI Calculation --- efi_raw = ta.ema(ta.change(close) * volume, efi_length) // --- Scale EFI --- efi_scaled = efi_raw * efi_scaling_factor // --- Plotting --- plot(mf, color=color.green, title="CMF", linewidth=2) plot(efi_scaled, color=color.red, title="EFI (Scaled)", linewidth=2) hline(0, color=color.gray, title="Zero Line", linestyle=hline.style_dashed) - Lines 4-6: Define input parameters for CMF length, EFI length, and EFI scaling factor. - Lines 9-11: Calculate the CMF. - Lines 14-16: Calculate the EFI. - Line 19: Scale the EFI by the scaling factor. - Lines 22-24: Plot the CMF, scaled EFI, and zero line. Feedback and Support Suggestions: If you have ideas for improvements or additional features, please share your feedback. Support: For assistance or questions regarding this indicator, feel free to contact the author through TradingView. --- By combining the CMF and scaled EFI into a single overlay, this indicator provides a powerful tool for traders to analyze market dynamics more comprehensively. Adjust the parameters to suit your trading style, and always practice sound risk management.
Pine Script™ indicator
by Rashino
MT Enhanced Trend Reversal Strategy 2This strategy, called **"Enhanced Trend Reversal Strategy with Take Profit,"** is designed to identify trend reversal points based on several indicators: **Exponential Moving Averages (EMA), MACD**, and **RSI**. The strategy also includes **take-profit levels** to provide traders with suggested profit-taking points. Key Components of the Strategy 1. **Exponential Moving Averages (EMA)**: - The strategy uses **20 and 50-period EMAs** to determine trend direction. The shorter period (EMA 20) reacts more quickly to price changes, while the longer period (EMA 50) smooths out fluctuations. - An **uptrend** (bullish market) is indicated when the EMA 20 is above the EMA 50. In this case, the main trend line is colored green. - A **downtrend** (bearish market) is indicated when the EMA 20 is below the EMA 50, in which case the trend line is colored red. - This visual indication simplifies analysis and allows traders to quickly assess the market condition. 2. **MACD (Moving Average Convergence Divergence)**: - MACD is an oscillator that shows the difference between two EMAs (with periods 6 and 13) and a **signal line** with a period of 5. - A **buy signal** is generated when the MACD line crosses above the signal line, indicating a potential bullish trend. - A **sell signal** is generated when the MACD line crosses below the signal line, indicating a possible bearish trend. - Shorter MACD periods make the strategy more sensitive to price changes, allowing for more frequent trading signals. 3. **RSI (Relative Strength Index)**: - RSI measures the speed and magnitude of directional price movements to determine if an asset is overbought or oversold. - The strategy uses a standard RSI period of 14, but with relaxed levels for more signals. - **For buy entries**, RSI should be above 40, signaling the start of a bullish impulse without indicating overbought conditions. - **For sell entries**, RSI should be below 60, signaling potential bearish movement without being oversold. Entry Conditions - **Buy Signal**: - The MACD line crosses above the signal line. - EMA 20 is above EMA 50 (uptrend). - RSI is above 40, indicating a potential rise without overbought conditions. - When these conditions are met, the strategy enters a **long position**. - **Sell Signal**: - The MACD line crosses below the signal line. - EMA 20 is below EMA 50 (downtrend). - RSI is below 60, indicating a possible decline without being oversold. - When these conditions are met, the strategy enters a **short position**. Take-Profit Levels - **Take Profit** is calculated at 1.5% of the entry price: - **For long positions**, take profit is set at a level 1.5% above the entry price. - **For short positions**, take profit is set at a level 1.5% below the entry price. - This take-profit level is displayed as a blue line on the chart, giving traders a clear idea of the target profit point for each trade. Visualization and Colors - The main trend line (EMA 20) changes to green in an uptrend and red in a downtrend. This provides a clear visual indicator of the current trend direction. - Take-profit levels are displayed as blue lines, helping traders follow targets and lock in profits at recommended levels. Usage Recommendations - **Timeframe**: The strategy is optimized for a 30-minute timeframe. At this interval, signals are frequent enough without being overly sensitive to noise. - **Applicability**: The strategy works well for assets with moderate to high volatility, such as stocks, cryptocurrencies, and currency pairs. - **Risk Management**: In addition to take profit, a stop loss at around 1-2% is recommended to minimize losses in case of sudden trend reversals. Conclusion This strategy is designed for more frequent signals by using faster indicators and relaxed RSI conditions. It is suitable for traders seeking quick trade opportunities and clearly defined take-profit levels.
Pine Script™ indicator
by GreedyGuyTrade
TechniTrend: Trend and Volume Indicator🟪 Overview The "TechniTrend: Trend and Volume Indicator" is designed to assist traders in identifying optimal entry and exit points in the market by combining trend detection and volume analysis. This indicator integrates moving average-based trend recognition with volume threshold analysis to provide clear buy and sell signals. Additionally, it includes divergence filtering and correlation analysis to enhance the accuracy of signals, making it suitable for traders who want to identify strong trends and high-probability trading opportunities. 🟪 Indicator Components 🔹Trend Moving Average (MA): The indicator calculates a moving average based on the closing prices to identify the overall trend. Various moving average types are available for customization: Simple Moving Average (SMA) Exponential Moving Average (EMA) Weighted Moving Average (WMA) Hull Moving Average (HMA) The length of the moving average can be adjusted via the Trend MA Length input to adapt to different market conditions. 🔹Volume Analysis: A volume moving average is calculated over a specified period (Volume MA Length), with a volume threshold derived by multiplying this average by a user-defined Volume Threshold Factor. This threshold helps to classify volume as either high or low, which plays a crucial role in signal generation. 🔹Divergence Detection: The indicator can filter out signals when there is a divergence between the price movement and volume changes. Divergence occurs when the price moves in one direction while the volume moves in the opposite direction, indicating a potential weakening of the trend. 🔹Correlation Analysis: The correlation between price and volume changes is calculated over the same length as the trend moving average. The user can enable this filter to ensure that buy or sell signals are only generated when the correlation exceeds a specified threshold (Correlation Threshold). 🟪 Signals and Alerts 🔹Buy Signal: Generated when the price is above the trend moving average (indicating an uptrend), and the current volume exceeds the volume threshold (indicating high volume). The signal can be filtered based on divergence or correlation settings. 🔹Sell Signal: Triggered when the price is below the trend moving average (indicating a downtrend), and the volume is above the threshold. Similarly, the signal is affected by divergence and correlation filters. 🔹Visual Indicators: The trend line is plotted on the chart for easy trend identification. Buy and sell signals are displayed using green and red labels, respectively. Background highlighting is used to mark areas of high volume on the chart. 🟪 Customizable Inputs 🔹Trend MA Length: Adjusts the moving average length used to detect trends. 🔹Volume MA Length: Sets the length for the volume moving average calculation. 🔹MA Type for Trend: Select the type of moving average for trend detection (SMA, EMA, WMA, HMA). 🔹Volume Threshold Factor: Multiplier used to define high-volume conditions based on the volume moving average. 🔹Enable Divergence Filter: Allows the user to filter out signals where divergence between price and volume is detected. 🔹Enable Correlation Filter: Enables filtering of signals based on the correlation between price and volume changes. 🔹Correlation Threshold: Sets the minimum correlation value required for a signal to be considered valid. 🟪 Alerts The indicator provides alert conditions for buy and sell signals, allowing traders to receive notifications when new trading opportunities arise. 🟪 Usage Tips 🔹Adjust Moving Average Lengths: Shorter lengths can make the indicator more sensitive to recent market changes, while longer lengths provide a smoother, more reliable trend signal. 🔹Volume Threshold Factor: Increasing this factor raises the volume required to generate high-volume signals, which can help filter. 🟪 Disclaimer: The "TechniTrend: Trend and Volume Indicator" is a technical analysis tool intended for educational and informational purposes only. It is not a guarantee of future performance or a recommendation to buy, sell, or hold any financial instrument. Trading involves significant risk, and past performance is not indicative of future results. Users should conduct their own research and seek advice from a qualified financial professional before making any investment decisions. The creators of this indicator are not liable for any financial losses or damages incurred through its use.
Pine Script™ indicator
by itsKraken