The Hitman indicator is a tool to detect momentum swings in the market. Its intention is to identify good entry and exit points and alert you to have a closer look at the charts. It can be used on any chart, timeframe or market.
This script is meant to build your alerts on. For backtesting different settings we recommend you to use the "THE HITMAN Strategy Tester".
In detail we measure the strength of a trend by different values like volatility , price averages and trend momentum and calculates for every candle, if a change in trend appears or not. The calculation can be influenced by changing three Inputs values. We do this for getting the best possible results from the Hitman The purpose of this strategy script is to help you identify proper settings for the asset and timeframe you want to trade. There is no general setting that fits it all. You have to find the settings that fits best to your life, your trading style, the assets you trade and the timeframe you trade on. For the strategy on BTCUSD chart shown below, we used the following inputs (25, 2, 20).
Be aware, that all results will be based on data from the past. There is no guarantee that the results you get by back testing, will also be achieved in the future.
An overview of how to use the 3 different options in the settings:
- Signal Strength: The higher this number, the stronger each signal gets. Naturally this means, you will get less signals with a high number. A strong signal is not a guarantee for a big move in the market neither it there any guarantee that the market moves in the projected direction. As the volatility is considered in calculating the strength of the signal, the numerical value may be the same buts its meaning for the calculation could be totally different. This means, on an asset with high volatility the signal strength has to be higher than on an asset with lower volatility . - Sensitivity: Is calculated into the signal strength. It has the highest impact on the numbers of signal shown but also when a change in the trend is signaled on the chart. The lower the number to more and earlier you get the signals. Enter a decimal to finetune it even further. But be aware that a too low number will create a lot of signals which could make it hard to identify true changes in trend. - Considered Volatility Range: Here you can set up the considered volatility range. It's impact highly depends on the asset you use it. The number does represent the amount of candles that have to be considered to calculate the strength of the signal.
How to use it? We recommend to use the signal only in direction of the trend. It can be used to scalp against the trend but for Risk Management reasons we advise not to do so. In sideways movement we recommend to look out for channels or levels of resistance and support and use the signal of the script as confirmation.
Release Notes
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Bugfix: There was a line plotted on the chart that shouldn't be there. This line could cause a massive zoom-out every time the chart was loaded new.
Release Notes
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Short update to take advantage of the new ‘Resolution’ Parameter TradingView Released this afternoon.
This will make it easy to do Multi-Timeframe Analysis with THE HITMAN - Advanced Market Momentum Finder. Just use the new option on settings and change the timeframe the Indicator is calculated from.
Release Notes
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Changed the bull and bear symbols to text (Buy and Sell)