OPEN-SOURCE SCRIPT
Updated [blackcat] L1 Dark Cloud Density
Level:1
Background
Go long through the buy and sell tags, and determine the size of the buy position by observing the density of the dark cloud or the thickness of the dark cloud.
Function
This is a buying and selling system that strives for simplicity and clarity, and position control is determined by the trend. The dark cloud here is the standard of this measurement. If there are many dark clouds, it means that the short-selling power is relatively strong, and the long-buying signal can be given up or bought with a small position. If the density of the dark clouds is sparse, it means that the long and short positions are weak, and the long positions can be appropriately increased.
The specific function is to follow the label prompts to buy and sell, and to decide how much to buy according to the density of the dark clouds.
Remarks
Free and Open Source
Alerts are added.
Background
Go long through the buy and sell tags, and determine the size of the buy position by observing the density of the dark cloud or the thickness of the dark cloud.
Function
This is a buying and selling system that strives for simplicity and clarity, and position control is determined by the trend. The dark cloud here is the standard of this measurement. If there are many dark clouds, it means that the short-selling power is relatively strong, and the long-buying signal can be given up or bought with a small position. If the density of the dark clouds is sparse, it means that the long and short positions are weak, and the long positions can be appropriately increased.
The specific function is to follow the label prompts to buy and sell, and to decide how much to buy according to the density of the dark clouds.
Remarks
Free and Open Source
Alerts are added.
Release Notes
OVERVIEWThe [blackcat] L1 Dark Cloud Density (DCD) indicator is designed to help traders identify potential buy and sell opportunities by analyzing price movements and volatility. This indicator uses custom functions to calculate key levels and plots them on the chart, providing visual cues for trading decisions. Additionally, it generates alerts for timely notifications of potential trades 📈💸.
FEATURES
Utilizes custom functions for calculating pivotal levels:
XRF: Extends recent function
XSA: Extended simple average
Plots two main lines:
Var5: Midpoint between previous high and low.
Var6: Extended Simple Average plus twice the standard deviation.
Fills the area between Var5 and Var6 for better visualization 🎨
Plots "BUY" and "SELL" labels on the chart for easy identification of trade signals 🏷️
Generates alerts for both long and short conditions 🔔
HOW TO USE
Add the indicator to your TradingView chart by selecting it from the indicators list.
Monitor the chart for plotted "BUY" and "SELL" labels indicating potential trade opportunities.
Set up alerts based on the generated signals to receive notifications when conditions are met 📲.
Use the filled area between Var5 and Var6 to gauge market sentiment and volatility.
LIMITATIONS
The indicator's effectiveness may vary depending on market conditions and asset types.
Some conditions might generate false signals in highly volatile or ranging markets 🌪️.
Users should always combine this indicator with other forms of analysis before making trading decisions.
NOTES
Ensure that you have sufficient historical data available for accurate calculations.
Test the indicator thoroughly on demo accounts before applying it to live trading 🔍.
Customize the appearance of the plotted lines and labels as needed in the settings panel ⚙️.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Avoid losing contact！Don't miss out! The first and most important thing to do is to join my Discord chat now! Click here to start your adventure: discord.com/invite/ZTGpQJq 防止失联，请立即行动，加入本猫聊天群: discord.com/invite/ZTGpQJq
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Avoid losing contact！Don't miss out! The first and most important thing to do is to join my Discord chat now! Click here to start your adventure: discord.com/invite/ZTGpQJq 防止失联，请立即行动，加入本猫聊天群: discord.com/invite/ZTGpQJq
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.