The particularity of this indicator is that it contains several indicators, including a custom one, that you can choose in a drop down list, as well as a trailing stop loss and take profit system.
The current indicators are :
- CYATO AI: a custom indicator inspired by Donchian Channels that will catch each big trend and important reversal points.
The indicator has two major "bands" or channels and two minor bands. The major bands are bigger and are always displayed.
When price reaches a major band, acting as a support/resistance, it will either bounce on it or break through it. This is how "tops" and "bottoms", and breakouts are caught.
The minor bands are used to catch smaller moves inside the major bands. A combination of volume, momentum and price action is used to calculate the signals.
Advantages of this indicator: it should catch top and bottoms better than other swing trade indicators.
Cons of this indicator: Some minor moves might be ignored. Sometimes the script will catch a fakeout due to the Bands design.
Best timeframes to use it : 2H~4H
Other indicators available:
- SARMA: A combination of Parabolic Stop and Reverse and Exponential Moving Average (20 and 40).
- SAR: Regular Parabolic Stop and Reverse.
- QQE: An indicator based on Quantitative Qualitative Estimation.
- SUPERTREND: A reversal indicator based on Average True Range.
- CHANNELS: The classic Donchian Channels.
More indicators might be added in the future.
About the signals: each entry (long & short) is calculated at bar close to avoid repainting. Exits (SL & TP) can either be intra-bar or at bar close using the Exit alert type parameter.
STOP LOSS SYSTEM
The base indicators listed above can be used with or without TP/SL.
TP and SL can be both turned on and off and configured for both directions.
The system can be configured with 3 parameters as follows:
- Stop Loss Base % Price: Starting Value for LONG/SHORT stop loss
- Trailing Stop % Price to Trigger First parameter related to the trailing stop loss. Percentage of price movement in the right direction required to make the stop loss line move.
- Trailing Stop % Price Movement: Second parameter related to the trailing stop loss. Percentage for the stop loss trailing movement.
Another option is the "Reverse order on Stop Loss". Use this if you want the strategy to trigger a reverse order when a stop loss is hit.
TAKE PROFIT SYSTEM
The system can be configured with 2 parameters as follows:
- Take Profit %: Take profit value in percentage of price.
- Trailing Profit Deviation %: Percent deviation for the trailing take profit.
Combining indicators and Take Profit/Stop Loss
One thing to note is that if a reversal signal triggers during a trade, the trade will be closed before SL or TP is reached.
Indeed, the base indicators are reversal indicators, they will trigger long/short signals to follow the trend.
It is possible to use a takeprofit without stop loss, like in this example, knowing that the signal will reverse if the trade goes badly.
The base indicators settings can be changed in the "Advanced Parameters" section.
Configuration used for this snapshot:
Each alert correspond to the labels on chart.
- 01. LONG ENTRY (BUY) : Long alert
- 02. LONG STOP LOSS : Long stop loss event
- 03. LONG TAKE PROFIT : Long take profit event
- 04. SHORT ENTRY (SELL) : Short alert
- 05. SHORT STOP LOSS : Short stop loss event
- 06. SHORT TAKE PROFIT : Short take profit event
- 07. LONG EXIT : Long exit alert. Triggers on both Stop loss and Take Profit
- 08. SHORT EXIT : Short exit alert. Triggers on both Stop loss and Take Profit
- 09. ALL TAKE PROFITS : Long and Short Take Profits. Both directions.
- 10. ALL STOP LOSSES : Long and Short Stop Losses. Both directions.
- 11. ALL EXITS : Long and Short exits alert. Stop Loss and Take Profit both Long and Short.
Use the link below to obtain access to this indicator.
You can add a trendline that you choose from a drop-down menu:
The "EXTERNAL" option allows you to plug in any external indicator for your trendline. To make it work, the external indicator must be added on the chart.
The trendline can be configured through a source and length input (the external trendline is configured in the external indicator directly).
With this trendline, you can create signals based on either "SLOPE CHANGE" or "CROSSOVER".
The slope is wether the trendline is going up or going down. A "slope smoothing" setting can be used to reduce noise.
Example of slope change condition:
Example of crossover condition:
Some trendlines like Tilson, KAMA, SMMA, VIDYA, DEMA work better with slope change since they are adaptative moving averages.
I don't recommend strategies using trendline crossover alone.
You can combine above swing trade indicators with a trendline. Both signals will add up.
The option "Use trendline to filter base indicator trades?" will turn the trendline into a trend filter based on the "signal condition". If "SLOPE CHANGE" is selected, the swing indicator will trigger long signals only when the trendline is going up, and short signals when going down. If "CROSSOVER" is selected, the swing indicator will trigger long signals only when price is above the trendline, and short signals when it is below.
ALERT ADDED: "SELL" alert that triggers on long SL, TP and short entry.
I took the original Donchian Channels, made it adaptive thanks to the new dynamic length functions of TradingView, and smoothed the result a bit.
This gives the following:
The "Adaptive Channels Ratio" setting will allow to use it on several timeframes.
- "DOUBLE CHANNELS LONG"
- "DOUBLE CHANNELS SHORT"
The Double Donchian Channel applied to long and short strategies.
Here is an example of a long strategy:
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