INVITE-ONLY SCRIPT
Updated algoat Flux (Early Access)
Analyze price fluctuations with double confirmation: meet Flux — an innovative, compound confirmation tool integrating multiple technical analysis methodologies to enhance your trading strategy.
⭐ Features:
Double-sided, reinforced sign
Although each oscillator offers valuable clues, their real strength comes from being used together. Identify converging signals between indicators and gain powerful confirmation for potential trading opportunities. Flux has it all in one.
Six exclusive custom indicators alongside a plethora of others
The right tool for the right job: Tailor your trading strategy with precision by choosing from our carefully crafted oscillators or integrating your preferred ones. Enjoy total flexibility to create the ideal combination for your trading needs.
Automatic and dynamic overbought/oversold levels
Implement adaptive bands that swiftly respond to the unique market behavior of the analyzed asset.
══════════════════
⭐ Unique metrics and indicators
By leveraging the combination of our six unique indicators Flux can provide a comprehensive and multi-dimensional view of market dynamics.
Sentiment (Fear & Greed index): Estimates market investor sentiment using the TMC algorithm enriched with the SMC Core.
Momentum: Measures the momentum and direction of financial instruments.
Trend Strength: Assesses the strength of a trend or the absence of a trend.
Volume Strength: Indicates current volume strength relative to the average monitored.
Volatility and Squeeze: Indicates current volume strength relative to the average monitored.
Asset Strength: Measures absolute strength of an asset compared to others.
══════════════════
👉 Usage — the general approach
In this example we'll use the RSI as main oscillator and the Stochastic RSI (SRSI) as the confirmation oscillator.
SNAPSHOT
Correct mindset and expectations
Utilize Flux as a confirmation tool to validate ideas and strategies effectively. By analyzing the oscillators' readings, you gain additional insights into market momentum, overbought or oversold conditions, and potential trend reversals. This confirmation step can help you avoid false signals.
Understand the difference between RSI and Stochastic RSI
The RSI represents broad relative strength, while the SRSI describes the relative strength within rapid movements. It's like having both a macro and micro view of relative strength.
Identify extreme values in the Stochastic RSI
Observe the shapes at the top and bottom of the scale. These shapes signify that the SRSI, our confirmation indicator, has entered its extreme zone. While the lines are hidden from view to filter out noise, imagine a secondary oscillator running in the background. When it reaches overbought or oversold levels, it notifies you by printing shapes on your chart. These secondary confirmations often signal a turning point in the RSI, which is typically reflected in the price.
Optional: Smooth your RSI
If the chart is too volatile for you, smooth your RSI by selecting and applying your preferred smoothing method and length. However, it's important to note that high smoothing values can render the standard RSI extremes (>70 or <30) suboptimal or even useless. To mitigate this issue, Automatic levels have been introduced.
Optional: Automatic key levels for more relevant extremes
Recalibrate extremes based on historical turning points and the deviation factor to receive dynamic and more relevant reference points for overbought/oversold levels.
Choose your display style
The RSI can be represented in candle, line or ribbon form. Candles and bars can be useful for detecting rejections of relative strength (wicks), similar to OHLC data. Sometimes there are "hidden rejections" visible in relative strength but not in OHLC data, which naturally presents an advantage.
Monitor real-time indicator values
In the bottom right corner, you can view real-time color-coded indicator values. This feature gives you the ability to quickly assess the market's current conditions without needing to navigate away from the chart.
Consider the market context
While Flux provides a robust set of tools, always consider other aspects of the market environment. Use it in conjunction with other technical, fundamental, or sentiment analysis methods to develop a comprehensive trading strategy.
Rely on multiple indicators combination
Besides RSI and SRSI, you can deploy and utilize other combinations. Successful combinations often comprise oscillators representing diverse dynamics. Other effective pairs may include but not limited to:
══════════════════
🧠 General advice
Trading effectively requires a range of techniques, experience, and expertise. From technical analysis to market fundamentals, traders must navigate multiple factors, including market sentiment and economic conditions. However, traders often find themselves overwhelmed by market noise, making it challenging to filter out distractions and make informed decisions. By integrating multiple analytical approaches, traders can tailor their strategies to fit their unique trading styles and objectives.
Confirming signals with other indicators
As with all technical indicators, it is important to confirm potential signals with other analytical tools, such as support and resistance levels, as well as indicators like RSI, MACD, and volume. This helps increase the probability of a successful trade.
Use proper risk management
When using this or any other indicator, it is crucial to have proper risk management in place. Consider implementing stop-loss levels and thoughtful position sizing.
Combining with other technical indicators
Integrate this indicator with other technical indicators to develop a comprehensive trading strategy and provide additional confirmation.
Conduct Thorough Research and Backtesting
Ensure a solid understanding of the indicator and its behavior through thorough research and backtesting before making trading decisions. Consider incorporating fundamental analysis and market sentiment into your trading approach.
══════════════════
⭐ Conclusion
We hold the view that the true path to success is the synergy between the trader and the tool, contrary to the common belief that the tool itself is the sole determinant of profitability. The actual scenario is more nuanced than such an oversimplification. A word to the wise is enough: developed by traders, for traders — pioneering innovations for the modern era.
Risk Notice
Everything provided by algoat — from scripts, tools, and articles to educational materials — is intended solely for educational and informational purposes. Past performance does not assure future returns.
⭐ Features:
Double-sided, reinforced sign
Although each oscillator offers valuable clues, their real strength comes from being used together. Identify converging signals between indicators and gain powerful confirmation for potential trading opportunities. Flux has it all in one.
Six exclusive custom indicators alongside a plethora of others
The right tool for the right job: Tailor your trading strategy with precision by choosing from our carefully crafted oscillators or integrating your preferred ones. Enjoy total flexibility to create the ideal combination for your trading needs.
Automatic and dynamic overbought/oversold levels
Implement adaptive bands that swiftly respond to the unique market behavior of the analyzed asset.
══════════════════
⭐ Unique metrics and indicators
By leveraging the combination of our six unique indicators Flux can provide a comprehensive and multi-dimensional view of market dynamics.
Sentiment (Fear & Greed index): Estimates market investor sentiment using the TMC algorithm enriched with the SMC Core.
- Derived from the TMC algorithm, enriched with the SMC Core structure mapping algorithm, weighted by the long-term relative price action strength within a windowed timeframe, estimating market investor sentiment. Helps gauge overall market mood, influencing trading strategies based on prevailing sentiment.
Momentum: Measures the momentum and direction of financial instruments.
- A highly reactive indicator, derived from TMC, weighted by recent relative price action strength within a windowed timeframe, estimating the momentum and direction of financial instruments or assets in any market conditions. Assists in identifying the strength and direction of market movements.
Trend Strength: Assesses the strength of a trend or the absence of a trend.
- Derived from the adjusted Sentiment (Fear & Greed index), weighted by the adjusted Momentum indicator, impartially estimating the strength of a trend or the absence of a trend. Provides insight into whether a current trend is likely to continue or reverse.
Volume Strength: Indicates current volume strength relative to the average monitored.
- A scaled representation of lower timeframe volumetric strength, is dynamically adjusted to the relevant windowed timeframe, indicating current volume strength relative to the average monitored. Highlights periods of high or low trading activity, which can signal potential trade opportunities.
Volatility and Squeeze: Indicates current volume strength relative to the average monitored.
- A scaled representation of price deviation, weighted by lower timeframe volumetric strength, dynamically adjusted to the relevant windowed timeframe, indicating current volatility and the absence of volatility relative to the average monitored. Helps traders understand price stability and potential for significant market moves.
Asset Strength: Measures absolute strength of an asset compared to others.
- Derived scaled absolute strength index from A/B comparison of different asset metrics over a windowed timeframe based on the SMC Core structure mapping algorithm. Facilitates asset comparison to identify the strongest or weakest performers.
- *SMC Core is our continually evolving, specialized structure mapping algorithm, serving as the backbone of our price action related publications.
*TMC (Trend Matrix Core) algorithm is our flexible moving average matrix calculation designed to assess market trend direction, strength, and shifts. It complements SMC Core as confluence.
══════════════════
👉 Usage — the general approach
In this example we'll use the RSI as main oscillator and the Stochastic RSI (SRSI) as the confirmation oscillator.
SNAPSHOT
Correct mindset and expectations
Utilize Flux as a confirmation tool to validate ideas and strategies effectively. By analyzing the oscillators' readings, you gain additional insights into market momentum, overbought or oversold conditions, and potential trend reversals. This confirmation step can help you avoid false signals.
Understand the difference between RSI and Stochastic RSI
The RSI represents broad relative strength, while the SRSI describes the relative strength within rapid movements. It's like having both a macro and micro view of relative strength.
Identify extreme values in the Stochastic RSI
Observe the shapes at the top and bottom of the scale. These shapes signify that the SRSI, our confirmation indicator, has entered its extreme zone. While the lines are hidden from view to filter out noise, imagine a secondary oscillator running in the background. When it reaches overbought or oversold levels, it notifies you by printing shapes on your chart. These secondary confirmations often signal a turning point in the RSI, which is typically reflected in the price.
Optional: Smooth your RSI
If the chart is too volatile for you, smooth your RSI by selecting and applying your preferred smoothing method and length. However, it's important to note that high smoothing values can render the standard RSI extremes (>70 or <30) suboptimal or even useless. To mitigate this issue, Automatic levels have been introduced.
Optional: Automatic key levels for more relevant extremes
Recalibrate extremes based on historical turning points and the deviation factor to receive dynamic and more relevant reference points for overbought/oversold levels.
Choose your display style
The RSI can be represented in candle, line or ribbon form. Candles and bars can be useful for detecting rejections of relative strength (wicks), similar to OHLC data. Sometimes there are "hidden rejections" visible in relative strength but not in OHLC data, which naturally presents an advantage.
Monitor real-time indicator values
In the bottom right corner, you can view real-time color-coded indicator values. This feature gives you the ability to quickly assess the market's current conditions without needing to navigate away from the chart.
Consider the market context
While Flux provides a robust set of tools, always consider other aspects of the market environment. Use it in conjunction with other technical, fundamental, or sentiment analysis methods to develop a comprehensive trading strategy.
Rely on multiple indicators combination
Besides RSI and SRSI, you can deploy and utilize other combinations. Successful combinations often comprise oscillators representing diverse dynamics. Other effective pairs may include but not limited to:
- Flux Sentiment & Flux Momentum: Assess momentum-driven sentiment.
- Flux Trend Strength & CMF: Confirm trend strength with buying/selling pressure.
- Flux Momentum & Flux Relative Volume: Reinforce momentum with volume.
- RSI & TSI: Measure relative strength with trend strength.
- TSI & WPR: Blend trend strength assessment with momentum dynamics.
- MFI & CMO: Confirm reversals with volume and momentum.
══════════════════
🧠 General advice
Trading effectively requires a range of techniques, experience, and expertise. From technical analysis to market fundamentals, traders must navigate multiple factors, including market sentiment and economic conditions. However, traders often find themselves overwhelmed by market noise, making it challenging to filter out distractions and make informed decisions. By integrating multiple analytical approaches, traders can tailor their strategies to fit their unique trading styles and objectives.
Confirming signals with other indicators
As with all technical indicators, it is important to confirm potential signals with other analytical tools, such as support and resistance levels, as well as indicators like RSI, MACD, and volume. This helps increase the probability of a successful trade.
Use proper risk management
When using this or any other indicator, it is crucial to have proper risk management in place. Consider implementing stop-loss levels and thoughtful position sizing.
Combining with other technical indicators
Integrate this indicator with other technical indicators to develop a comprehensive trading strategy and provide additional confirmation.
Conduct Thorough Research and Backtesting
Ensure a solid understanding of the indicator and its behavior through thorough research and backtesting before making trading decisions. Consider incorporating fundamental analysis and market sentiment into your trading approach.
══════════════════
⭐ Conclusion
We hold the view that the true path to success is the synergy between the trader and the tool, contrary to the common belief that the tool itself is the sole determinant of profitability. The actual scenario is more nuanced than such an oversimplification. A word to the wise is enough: developed by traders, for traders — pioneering innovations for the modern era.
Risk Notice
Everything provided by algoat — from scripts, tools, and articles to educational materials — is intended solely for educational and informational purposes. Past performance does not assure future returns.
Release Notes
-Release Notes
-Release Notes
- added Bands and Band Extremes for line chart- added MACD [beta]
Release Notes
SMC Core and TMC algorithm update: sensitivity adjustments.Release Notes
v3.1.1: Momentum oscillator now works on charts without volume data.Release Notes
-Release Notes
v3.1.2- SMC Structure Trend Strength added as a new indicator. This is the combined trend calculation from SMC Swing and Internal structural changes. It can be used in conjunction with the moving average based Trend Sentiment for double trend confirmation.
- Automatic (adaptive) levels are now default.
Release Notes
Maintenance updateInvite-only script
Only users authorized by the author have access to this script, and this usually requires payment. You can add the script to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author — learn more here. For more details, follow the author's instructions below or contact algoat directly.
Note that this private, invite-only script has not been reviewed by script moderators, and its compliance with House Rules is undetermined. TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Author's instructions
Get access: https://algoat.net
Warning: please read our guide for invite-only scripts before requesting access.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Invite-only script
Only users authorized by the author have access to this script, and this usually requires payment. You can add the script to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author — learn more here. For more details, follow the author's instructions below or contact algoat directly.
Note that this private, invite-only script has not been reviewed by script moderators, and its compliance with House Rules is undetermined. TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Author's instructions
Get access: https://algoat.net
Warning: please read our guide for invite-only scripts before requesting access.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.