THE 'PROBLEM' A lot of buy and sell strategies are based on price action being at a particular (support) level, crossovers of different moving averages or of price action over moving averages. Whilst this is a safe way to trade, the price paid is lost earnings , whilst one waits for price/moving averages to reach a particular level/configuration. So for instance price may have to move X% before it crosses over a critical level and only then is a trade taken - the X% is usually 'lost'.
THE 'SOLUTION' My motivation was to write a buy and sell indicator which makes (long) calls as early as possible therefore maximising profits and minimising losses whilst also identifying local tops at which profits may be taken if so desired.
THE METHOD The philosophy of this indicator is centred around analysis of candlestick parameters for the present candle and comparing these to those of previous candles at set points. The results of these comparisons are then correlated with moving averages of price action and in so doing one is able to detect shift reversals earlier than conventional indicators would. Consequently, a signal can be created very close to the bottom of a rally. In addition, a 'take profit' signal can be created from what has been identified as a local top. Please refer to the attached chart where it becomes evident quite immediately that buy and TP signals allow for maximisation of a given trend, hence maximisation of profits.
MARKETS The script may be applied to any market i.e. crypto, forex, stocks - as long as there's a chart on Tradingview, it will work.
CONDITIONS The script works well in all time frames. Obviously at higher time frames one gets 'cleaner' signals since high time frames are themselves a kind of filter, given that lower time frames are 'busy' by nature.
CAVEAT Whilst great care and attention has been put into polishing and re-polishing this script, it needs to be stated that it's not perfect. Two issues that one needs to be aware of: 1.) Sometimes signals will not be made as early as the actual bottom of a rally. Mitigation for this is two fold: a.) Most of the calls made by the script are close to a bottom and therefore profits realised from this are far more than any losses accrued from a late call. b.) The script should never be used in isolation but along with TA strategies and common sense. 2. Sometimes a 'bad' call will be made. Mitigation for this is two fold: a.) The script has a 'smart' feature that calls for exit signals as soon as it's realised that the long call was not a favourable one. This enables one to minimise losses by cutting them quickly. b.) The script should never be used in isolation but along with TA strategies and common sense.
PLEASE PERUSE ATTACHED CHART I encourage you to please peruse the attached 'GOBTC' chart for a demonstration of the script in play.
HOW TO GET AND USE THE SCRIPT Since its invite only, please PM me and I will be happy to add you. Once added, you will see the list under Indicators>Inviteonlyscripts>TRADERS COMPANION at which point you click and it will show on your chart. It also needs to be stated that there is a no obligation trial period during which one is encouraged to 'test-drive' the script to ones hearts content.
Release Notes
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This new version ('Build 2') comes with the following improvements relative to 'Build 1'. 1. Extra checks to the buy and sell signals with the aim of reducing as much as reasonably possible, buy signals during a downtrend or unnecessary sell signals during an uptrend. These checks are in the form of a series of weighted moving averages that serve as filters to candle closes. The result of this is that buy and sell signals are detected few candles later relative to build 1. Whilst this may seem like a drawback, it's actually a worthy cost to pay for more accurate long and short signals, not to mention a significant reduction in 'false signals'. 2. Single buy signal as opposed to multiple buys with the aim of cleaning up the display. 3. Removal of 'Take Profit' signal with the aim of cleaning up the display.