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Exponential Moving Average (EMA)

3x Supertrend + EMA200 Signal Buy/Sell [nsen]The indicator uses signals from three Supertrend lines to determine whether to trade Buy or Sell, with the assistance of a moving average for bias. Buy/Sell signals are generated when the conditions are met: A Buy signal is triggered when all three Supertrend lines indicate a bullish trend and are above the EMA. A Sell signal is triggered when all three Supertrend lines indicate a bearish trend and are below the EMA. Indicator ใช้สัญญาณจาก Supertrend ทั้งหมด 3 เส้น โดยใช้ในการกำหนดว่าจะเลือกเทรด Buy หรือ Sell โดยการใช้ moveing average เข้ามาช่วยในการ bias แสดงสัญญาณ Buy/Sell เมื่อเข้าเงื่อนไข - Supertrend ทั้ง 3 เส้นเป็นสัญญาณ Bullish และอยู่เหนือเส้น EMA จะเปิดสัญญาณ Buy - Supertrend ทั้ง 3 เส้นเป็นสัญญาณ Bearish และอยู่ใต้เส้น EMA จะเปิดสัญญาณ Sell
Pine Script® indicator
by N_SEN
6
3 Period EMA Cloud [deepakks444]3 Period EMA Cloud Indicator The 3EMA Cloud Indicator uses three key EMAs to capture trends and display the market's direction through a color-coded cloud. The EMAs used in this indicator are: High EMA: The EMA of the high prices over a specified period. Low EMA: The EMA of the low prices over a specified period. Additional EMA: An extra EMA, typically based on the close prices, that serves as an independent confirmation tool for trend direction. Indicator Logic and Cloud Visualization: The cloud is drawn between the high EMA and the low EMA, and its color changes based on the price's relationship to the high EMA, low EMA, and additional EMA. Cloud Color: Green Cloud: When the price is above both the high EMA and the low EMA, it signals a bullish trend, and the cloud turns green. Additionally, if the close price is above the Additional EMA, this further confirms the bullish trend. Red Cloud: When the price is below both the high EMA and the low EMA, it signals a bearish trend, and the cloud turns red. Additionally, if the close price is below the Additional EMA, this further confirms the bearish trend. How the Indicator Captures Trends: Bullish Market: Price above both high EMA and low EMA: This indicates that the market is in an uptrend, and the cloud will turn green. Confirmation with Additional EMA: When the close price is above the Additional EMA, this reinforces the bullish market sentiment. The green cloud is the visual confirmation of a bullish trend, guiding traders to consider long positions. Bearish Market: Price below both high EMA and low EMA: This indicates that the market is in a downtrend, and the cloud will turn red. Confirmation with Additional EMA: When the close price is below the Additional EMA, this confirms the bearish trend. The red cloud is the visual confirmation of a bearish trend, guiding traders to consider short positions. Key Components: High EMA: Calculates the EMA based on high prices, which helps to determine the upper boundary of the cloud. Low EMA: Calculates the EMA based on low prices, which helps to determine the lower boundary of the cloud. Additional EMA: An extra EMA (often of the close prices) that acts as an independent trend confirmation. This is used to validate the market direction and filter out potential false signals. Use Cases for the 3EMA Cloud: Trend Identification: The cloud helps to visually identify the prevailing trend. A green cloud suggests a bullish trend, while a red cloud indicates a bearish trend. Confirmation Tool: The Additional EMA serves as an additional confirmation tool. A close price above the Additional EMA signals a strong bullish trend, while a close below it signals a strong bearish trend. Market Reversals: When the price moves from above both the high EMA and low EMA to below them (or vice versa), this could indicate a trend reversal. Pay attention to cloud color changes and the movement of the close price relative to the Additional EMA for potential reversal signals. Entry and Exit Signals: Long Entry (Buy Signal): Price is above both the high EMA and low EMA, confirming a bullish trend. Close price is above the Additional EMA, confirming the bullish trend. Enter a long position when the cloud turns green and the confirmation by the Additional EMA is in place. Short Entry (Sell Signal): Price is below both the high EMA and low EMA, confirming a bearish trend. Close price is below the Additional EMA, confirming the bearish trend. Enter a short position when the cloud turns red and the confirmation by the Additional EMA is in place. Exit Signal: Exit Long Position when the price moves below both the high EMA and low EMA (signaling a potential trend reversal), or if the close price falls below the Additional EMA. Exit Short Position when the price moves above both the high EMA and low EMA (signaling a potential trend reversal), or if the close price rises above the Additional EMA. How This Indicator Improves Trend Following: The 3EMA Cloud indicator enhances trend-following strategies by: Visual Clarity: The color-coded cloud provides immediate visual feedback on whether the market is in a bullish or bearish phase. Price Confirmation: The indicator uses the relationship of price to three EMAs (high, low, and additional) to confirm trend strength, which can help reduce false signals. Flexibility: The Additional EMA adds flexibility by serving as an independent confirmation tool for trend direction, ensuring that you don’t enter trades based on weak or choppy market conditions. This 3EMA Cloud indicator is designed to help traders follow and confirm trends with precision, improving their ability to identify strong market movements and avoid getting caught in sideways or choppy conditions. It provides a clear visual cue for potential buy and sell opportunities based on price relative to multiple EMAs, ensuring that trend-following strategies are robust and effective. Disclaimer: This script and its associated indicators are for educational purposes only. The information provided does not constitute financial advice or a recommendation to buy or sell any financial instruments. Users are advised to conduct their own research and consult with a professional financial advisor before making any trading decisions. Trading and investing involve risk, and users should be aware of the risks involved in financial markets.
Pine Script® indicator
by deepakks444
Sniper TradingSniper Trader Indicator Overview Sniper Trader is a comprehensive trading indicator designed to assist traders by providing valuable insights and alerting them to key market conditions. The indicator combines several technical analysis tools and provides customizable inputs for different strategies and needs. Here’s a detailed breakdown of all the components and their functions in the Sniper Trader indicator: 1. MACD (Moving Average Convergence Divergence) The MACD is a trend-following momentum indicator that helps determine the strength and direction of the current trend. It consists of two lines: MACD Line (Blue): Calculated by subtracting the long-term EMA (Exponential Moving Average) from the short-term EMA. Signal Line (Red): The EMA of the MACD line, typically set to 9 periods. What does it do? Buy Signal: When the MACD line crosses above the signal line, it generates a buy signal. Sell Signal: When the MACD line crosses below the signal line, it generates a sell signal. Zero Line Crossings: Alerts are triggered when the MACD line crosses above or below the zero line. 2. RSI (Relative Strength Index) The RSI is a momentum oscillator used to identify overbought or oversold conditions in the market. Overbought Level (Red): The level above which the market might be considered overbought, typically set to 70. Oversold Level (Green): The level below which the market might be considered oversold, typically set to 30. What does it do? Overbought Signal: When the RSI crosses above the overbought level, it’s considered a signal that the asset may be overbought. Oversold Signal: When the RSI crosses below the oversold level, it’s considered a signal that the asset may be oversold. 3. ATR (Average True Range) The ATR is a volatility indicator that measures the degree of price movement over a specific period (14 bars in this case). It provides insights into how volatile the market is. What does it do? The ATR value is plotted on the chart and provides a reference for potential market volatility. It's used to detect flat zones, where the price may not be moving significantly, potentially indicating a lack of trends. 4. Support and Resistance Zones The Support and Resistance Zones are drawn by identifying key swing highs and lows over a user-defined look-back period. Support Zone (Green): Identifies areas where the price has previously bounced upwards. Resistance Zone (Red): Identifies areas where the price has previously been rejected or reversed. What does it do? The indicator uses swing highs and lows to define support and resistance zones and highlights these areas on the chart. This helps traders identify potential price reversal points. 5. Alarm Time The Alarm Time feature allows you to set a custom time for the indicator to trigger an alarm. The time is based on Eastern Time and can be adjusted directly in the inputs tab. What does it do? It triggers an alert at a user-defined time (for example, 4 PM Eastern Time), helping traders close positions or take specific actions at a set time. 6. Market Condition Display The Market Condition Display shows whether the market is in a Bullish, Bearish, or Flat state based on the MACD line’s position relative to the signal line. Bullish (Green): The market is in an uptrend. Bearish (Red): The market is in a downtrend. Flat (Yellow): The market is in a range or consolidation phase. 7. Table for Key Information The indicator includes a customizable table that displays the current market condition (Bull, Bear, Flat). The table is placed at a user-defined location (top-left, top-right, bottom-left, bottom-right), and the appearance of the table can be adjusted for text size and color. 8. Background Highlighting Bullish Reversal: When the MACD line crosses above the signal line, the background is shaded green to highlight the potential for a trend reversal to the upside. Bearish Reversal: When the MACD line crosses below the signal line, the background is shaded red to highlight the potential for a trend reversal to the downside. Flat Zone: A flat zone is identified when volatility is low (ATR is below the average), and the background is shaded orange to signal periods of low market movement. Key Features: Customizable Time Inputs: Adjust the alarm time based on your local time zone. User-Friendly Table: Easily view market conditions and adjust display settings. Comprehensive Alerts: Receive alerts for MACD crossovers, RSI overbought/oversold conditions, flat zones, and the custom alarm time. Support and Resistance Zones: Drawn automatically based on historical price action. Trend and Momentum Indicators: Utilize the MACD and RSI for identifying trends and market conditions. How to Use Sniper Trader: Set Your Custom Time: Adjust the alarm time to match your trading schedule. Monitor Market Conditions: Check the table for real-time market condition updates. Use MACD and RSI Signals: Watch for MACD crossovers and RSI overbought/oversold signals. Watch for Key Zones: Pay attention to the support and resistance zones and background highlights to identify market turning points. Set Alerts: Use the built-in alerts to notify you of buy/sell signals or when it’s time to take action at your custom alarm time.
Pine Script® indicator
by joshua_boes82
1
NSE: 2in1 Options-Index (Nifty-Bank-MID-Fin) 1. Using Two Charts in One Indicator with Buy and Sell Signals on Both Charts Dual-Chart Functionality: This indicator allows you to monitor two charts simultaneously – the main chart (Options) and the underlying index chart (NIFTY, BANKNIFTY, etc.). The index chart (below the main chart) shows the underlying index movement. The main chart displays the Options data (e.g., NIFTY options, BANKNIFTY options). Buy/Sell Signals on Both Charts: Buy and sell signals are generated on both the options chart and the index chart, ensuring you don’t miss any trading opportunities. This dual-chart setup helps you correlate the movement of the index with the options data for better decision-making. 2. Works Across Major Indices (NIFTY, BANKNIFTY, FINNIFTY, etc.) Automatic Index Detection: The script automatically detects the underlying index based on the chart symbol. It supports: NIFTY, BANKNIFTY, FINNIFTY, MIDCPNIFTY, SENSEX Flexibility: Whether you’re trading NIFTY options or BANKNIFTY options, the indicator adapts to the selected index and provides accurate signals. 3. Helps You Select ATM, ITM, and OTM Strikes (Ideal for Beginners and Advanced Traders) ATM (At-The-Money) Strike Calculation: The script calculates the ATM strike price based on the current spot price of the underlying index. ITM (In-The-Money) and OTM (Out-Of-The-Money) Strikes: Users can adjust the strike price using a slider to select ITM or OTM strikes. This feature is especially helpful for beginners who are learning about options trading and want to understand the difference between ITM, ATM, and OTM strikes. Strike Price Display: The selected strike price is displayed on the chart, making it easy to identify the right strike for your trades. 4. Double EMA Selection for Trading Customizable EMAs: The script uses two Exponential Moving Averages (EMAs) to generate signals: Short EMA (Default: 21 periods) Long EMA (Default: 34 periods) Users can customize the EMA lengths based on their trading strategy. 5. Option Chart in the Main Chart with Index Chart Below for Easy Monitoring Integrated Chart Setup: The main chart displays the options data (e.g., NIFTY options, BANKNIFTY options). The index chart (below the main chart) shows the underlying index movement. Benefits: This setup allows you to monitor both the options and the index in a single view, making it easier to: Correlate the movement of the index with the options data. Identify trading opportunities directly on the chart. No need to switch between multiple charts – everything is in one place. 6. Targets and Stop-Loss When the Signal is Generated Dynamic Targets and Stop-Loss: The script calculates targets and stop-loss levels based on the Predicted Range (PR) bands. Trailing Stop-Loss: The stop-loss level adjusts dynamically as the price moves in your favor. Target Levels: Two target levels are provided (Target 1 and Target 2) based on the PR bands. Visual Indicators: Targets and stop-loss levels are plotted on the chart with labels and lines for easy reference. Colors: Trailing Stop: Light Pink Target 1: Light Green Target 2: Light Green 7. Various Other Options in One Indicator Advanced Statistical Bands (KRO Settings): The script includes Kernel Regression Oscillator (KRO) settings for advanced traders. Plots upper and lower bands based on standard deviation and kernel regression. Helps identify overbought and oversold conditions. Customizable Alerts: Users can enable/disable alerts for: Buy/Sell signals. Trailing stop-loss hits. Target achievements. Summary of Benefits All-in-One Tool: Combines candlestick analysis, EMAs, options strike selection, targets, stop-loss, and advanced statistical bands in a single indicator. Beginner-Friendly: Helps new traders understand ATM, ITM, and OTM strikes while providing clear buy/sell signals. Advanced Features: Includes KRO settings, dynamic targets, and trailing stop-loss for experienced traders. Dual-Chart Setup: Monitor options and the underlying index simultaneously for better decision-making. Customizable: Adjust EMA lengths, strike prices, colors, and alerts to suit your trading style.
Pine Script® indicator
by SpartanTradingCo
Squeeze Momentum Indicator with Entry Tactics### **Squeeze Momentum Indicator with Stacked EMAs** #### **Description:** This indicator is an enhanced version of the **Squeeze Momentum Indicator** (originally by John Carter and later modified by LazyBear). It identifies **periods of consolidation (squeeze)** and signals potential **explosive price moves** when momentum shifts. The added **stacked EMA concept** further refines entry signals by confirming trend strength. This is also an update to version 6 of PineScript #### **How to Use:** The indicator provides **three different entry tactics**, allowing traders to choose signals based on their strategy: 1. **Inside Day Pattern** – Detects inside candles, which indicate potential breakouts when volatility contracts. 2. **Consecutive Black Crosses (Squeeze Signal)** – A certain number of black crosses (low volatility periods) suggests a strong move is coming. 3. **Stacked EMA Concept** – When the **8 EMA > 21 EMA > 34 EMA**, combined with a momentum shift from negative to positive, it signals a **high-probability bullish entry**. #### **Visual Cues:** - **Histogram Bars**: Show momentum (green for increasing bullish, red for increasing bearish). - **Black & Gray Dots**: Represent different squeeze states (low volatility vs. breakout conditions). - **🔥 Bullish Label**: Appears when the stacked EMAs align and momentum shifts from negative to positive. #### **Best Practices:** - Look for **momentum shifts during a squeeze** for high-probability trades. - Use **stacked EMAs as trend confirmation** before entering. - Combine with **price action and volume analysis** for additional confluence. This indicator helps traders **anticipate major price moves** rather than react, making it a powerful tool for trend-following and breakout strategies. 🚀
Pine Script® indicator
by tashfeen3
ORB-5Min + Adaptive 12/48 EMA + PDH/PDL Overview: This indicator combines the 5-Minute Opening Range Breakout (ORB), Adaptive 12/48 Exponential Moving Averages (EMAs), and Previous Day High/Low (PDH/PDL) levels to help traders identify key intraday levels and market trends. Key Components and Logic: 5-Minute Opening Range Breakout (ORB): Displays the high and low from the first 5-minute candle of the trading session. Includes customizable opacity for the range fill. Helps traders spot breakout opportunities and key support/resistance zones. Adaptive 12/48 EMA System: Displays EMAs for 9, 12, 48, and 200 periods. The 12 EMA changes color based on whether the price is entirely above or below it. The 48 EMA changes color depending on its relationship with the 12 EMA. Provides dynamic trend identification and potential entry/exit signals. Previous Day High/Low (PDH/PDL): Displays the previous day’s high and low levels. Useful for tracking key intraday support/resistance levels and potential reversal points. Summary: This script stands out by blending three popular intraday tools into a single comprehensive indicator. The combined visualization provides a layered market context that assists traders in making informed decisions quickly. The color-adaptive EMAs add clarity to trend direction, while the ORB and PDH/PDL levels highlight significant price zones for breakout or reversal trades. How to Use: Breakout Trades: Watch for price breaks above the ORB high or below the ORB low, especially when supported by EMA trends. Trend Confirmation: Use the color-adaptive 12/48 EMA system to gauge momentum and market direction. Reversal or Continuation: Observe how price reacts around PDH/PDL levels, especially if confluence with EMAs occurs. This indicator is suitable for day traders seeking a clear and efficient way to track market structure, identify trends, and spot potential trade opportunities during regular market hours.
Pine Script® indicator
by diegoquintero623
TTC EMA Scalping Machine with RSI Filter and MACDTTC EMA Scalping Machine with RSI Filter and MACD TTC EMA Scalping Machine with RSI Filter and MACD is a multi-layered technical analysis tool designed for traders looking to scalp the markets with a combination of trend-following and momentum-based indicators. This strategy leverages Exponential Moving Averages (EMAs) , Relative Strength Index (RSI) , MACD , and Volume Analysis to help traders identify high-probability entry points for short and long trades. The indicator can be used in multiple market conditions and is suited for both beginners and experienced traders looking for clear entry signals. --- Key Features : 1. EMA-Based Trend Filtering : - The indicator uses four Exponential Moving Averages (EMAs) with different periods: - EMA 10 (Short-Term) : The fastest-moving average for detecting quick price movements. - EMA 20 (Medium-Term) : A central trendline for market momentum. - EMA 30 (Long-Term) : To observe broader market trends. - EMA 50 (Longest-Term) : To identify the overall market direction. - These EMAs are plotted on the chart and used to create EMA bands , visually displaying potential support and resistance levels. Price action inside these bands helps identify scalping opportunities. 2. RSI Filter : - RSI (Relative Strength Index) is used to gauge overbought and oversold conditions in the market: - Overbought condition (RSI > 70) : The market may be overextended, signaling the possibility of a short. - Oversold condition (RSI < 30) : The market may be undervalued, signaling the possibility of a long. - The RSI filter ensures that trades are not taken when the market is overextended, offering a more conservative approach to trade entries. 3. MACD Momentum Analysis : - The MACD (Moving Average Convergence Divergence) indicator is included to confirm the trend and momentum direction: - Long Condition : The MACD line crosses above the signal line, confirming a bullish momentum. - Short Condition : The MACD line crosses below the signal line, confirming a bearish momentum. - This serves as an additional filter to verify if the market momentum aligns with the long or short entry criteria. 4. Long Entry (Buy Signal) : - A long entry signal is triggered when the following conditions are met: - The price is above EMA 20 (indicating an overall bullish market). - The price is within the green EMA band (EMA 10 and EMA 20), suggesting short-term support. - The RSI is below 70 (indicating the market is not overbought). - The MACD line is above the signal line , showing bullish momentum. - These conditions combined suggest an ideal environment for entering a long position. 5. Short Entry (Sell Signal) : - A short entry signal is triggered when the following conditions are met: - The price is below EMA 20 (indicating an overall bearish market). - The price is within the green EMA band (EMA 20 and EMA 30), suggesting short-term resistance. - The RSI is above 30 (indicating the market is not oversold). - The MACD line is below the signal line , showing bearish momentum. - These conditions combined suggest an ideal environment for entering a short position. 6. Signal Alerts : - Long Alerts : Users can set alerts to notify them when a long condition is met. These alerts are triggered when all the criteria for a long entry are satisfied. - Short Alerts : Similarly, users can set alerts for short signals, notifying them when all the conditions for a short entry are satisfied. 7. EMA Bands : - The EMA bands are visually represented with colored fills between the EMAs, providing a visual aid to recognize potential trading zones. These zones can serve as a reference for traders to make quick decisions regarding entries and exits. 8. Volume Filter : - The indicator also includes a volume filter , which compares the current volume to its 20-period simple moving average. Higher volumes provide confirmation of price movement, which can indicate stronger potential for the trade. --- How It Works : - Long Trades : The indicator suggests a long position when the price is above the EMA 20, within the green EMA band, the RSI is not overbought, and MACD confirms bullish momentum (MACD line above the signal line). - Short Trades : The indicator suggests a short position when the price is below the EMA 20, within the green EMA band, the RSI is not oversold, and MACD confirms bearish momentum (MACD line below the signal line). - Volume Confirmation : The indicator uses a volume-based filter to ensure the trade is backed by sufficient market participation. --- Usage : - Best for Scalping : This strategy is designed for short-term trades ( scalping ) and can be applied to any time frame, though it works best on intraday charts, such as 5-minute or 15-minute charts. - Ideal for Trend-Following : With the use of EMAs and MACD, the strategy is best suited for markets that exhibit clear trends. It helps to avoid whipsaw trades and focuses on capturing medium-term trends. - Risk Management : By using RSI, MACD, and volume analysis together, this strategy reduces the likelihood of entering a trade in an overextended market, which helps with risk management. --- Alerts and Signals : - Long Signals : When all conditions are met for a long trade, a green label appears below the price bar, indicating a potential buy opportunity. An alert is also generated, notifying the user. - Short Signals : When all conditions are met for a short trade, a red label appears above the price bar, indicating a potential sell opportunity. An alert is also generated, notifying the user. --- This combination of EMA , RSI , MACD , and volume-based filters creates a balanced approach to scalping, ensuring that traders receive clear, actionable entry signals with trend confirmation, while avoiding overbought and oversold conditions that may lead to false signals. The indicator is designed to help traders confidently identify high-probability trades while maintaining simplicity and clarity in its setup.
Pine Script® indicator
by Perry_Satoshi
1
Adaptive 12/48 EMAThe Adaptive 12/48 EMA is a trend-following indicator that dynamically changes color based on price positioning relative to key exponential moving averages (EMAs). EMA Calculation: The script calculates three EMAs—9 EMA (white), 12 EMA (adaptive color), and 48 EMA (adaptive color). Trend Confirmation: The 12 EMA turns green when the price (open, close, and low) is fully above it, indicating bullish momentum. The 12 EMA turns red when the price is fully below it, signaling bearish conditions. Long-Term Trend (48 EMA): The 48 EMA turns purple when the 12 EMA is above it, confirming an uptrend. The 48 EMA turns pink when the 12 EMA is below it, confirming a downtrend. Both EMAs turn gray when there's no clear trend. How to Benefit from It: Trend Trading: Use green/red shifts in the 12 EMA to time entries in the direction of momentum. Trend Strength Confirmation: The 48 EMA color change helps determine the longer-term trend direction. Confluence with Other Indicators: Works well with volume indicators or RSI for confirmation before entering trades. This indicator provides a clear visual representation of trend strength and direction, helping traders make informed decisions based on price structure.
Pine Script® indicator
by diegoquintero623
Moneyball EMA-MACD indicator [VinnieTheFish]Summary of the Moneyball EMA-MACD Indicator Script Author: VinnieTheFish Purpose: This indicator helps traders identify trend direction, momentum shifts, and potential trade signals based on EMA and MACD crossovers. This Pine Script is a custom indicator that combines Exponential Moving Averages (EMAs) and MACD (Moving Average Convergence Divergence) to analyze price trends and momentum. The script uses a custom 9/50 MACD with a 16 smoothing period. The script is written in a way that you can create your own custom MACD settings and create alerts based on those parameters. The chart bars are color coded based on the relative position of the MACD and Signal line primarily for bullish long trade setups. Bar color coding helps the trader spot potential reversals based on where the price currently resides in relation to the custom 9/50 EMA based MACD and the 16 period smoothing period for the signal line. Indicator also has custom alerts to notify the trader when a potential trade setup exists that correspond with the bar color change. Question: So why is this called the Moneywell EMA-MACD Indicator? Answer: In the movie Moneyball the Oakland A's broke down how to win a championship based on data. To make the playoffs you needed so many wins, then broken down by runs and then broken down to base hits. A base hit was good as a walk. With trading often times we look too often for home runs and ignore the importance of getting on base with small wins. This indicator was designed on shorter timeframes to identify those base hits, but can also be adapted to higher timeframes for swing trading. Key Features: User Inputs: Configurable fast and slow lengths for MACD calculation. Choice between SMA and EMA for oscillator and signal line smoothing. Customizable signal smoothing length. EMA Calculation: Computes 3 EMA, 9 EMA, 20 EMA, and 50 EMA to track short-term and long-term trends. MACD Calculation: Computes MACD using either SMA or EMA based on user selection. Generates the MACD signal line for comparison. Crossover Conditions: Detects MACD and Signal line crossovers above and below the zero line. Identifies price momentum shifts. Bar Coloring Logic: Green: MACD is above 0 and above the signal line. White: MACD is below the signal line. Orange: MACD is below 0 but above the signal line. Fuchsia: Bullish EMA 3/9 cross but price is still below the 20/50 EMA. Alerts for Key Trading Signals: MACD crossing above/below the zero line. Signal line crossing above/below the zero line. MACD reaching new highs/lows. Alerts for colored bar conditions.
Pine Script® indicator
by vborrego
8
EMA/SMA Ribbon Pro (AUTO HTF + Labels)This indicator is a multi-timeframe (MTF) moving average ribbon that dynamically adjusts to the next highest timeframe. It provides a visual representation of market trends by stacking multiple EMAs and SMAs with customizable color fills and labels. Features ✅ Multi-Timeframe (MTF) Support: Automatically detects the next highest time frame or allows for manual selection ✅ Customizable Moving Averages: Supports EMA and SMA with different lengths for flexible configuration ✅ Ribbon Visualization: Smooth color transitions between different moving averages for better trend identification ✅ Crossover Labels: Detects bullish and bearish EMA/SMA crossovers and marks them on the chart ✅ Price Labels & Timeframe Display: Displays moving average values to the right of the price axis with customizable label padding and colors How It Works Select the HTF mode: Manual or automatic Choose EMA/SMA lengths to create different ribbons Enable/disable price labels for each moving average Customize colors and transparency for ribbons and labels Crossover labels appear when faster moving averages cross slower ones and vice versa Use Cases 📌 Trend Identification: Identify bullish and bearish trends using multiple EMAs and SMAs 📌 Support & Resistance Zones: MAs can act as dynamic support and resistance levels 📌 Reversal & Confirmation Signals: Watch for MTF crossovers to confirm trend changes Customization 🔹 Standard EMA Lengths: 6, 8, 13, 21, 34, 48, 100, 200, 300, 400 🔹 SMA Lengths: 48, 100, 200 🔹 Color Adjustments: Set custom colors for bullish/bearish ribbons 🔹 Crossovers: Enable/disable custom crossover pairs (e.g., 100/200 EMA, 200 EMA/SMA). This indicator is perfect for traders who rely on multi-timeframe confluence while seeking to enhance their market analysis and decision-making process. As always, by combining EMA/SMA Ribbon with other tools, traders ensure that they are not relying on a single indicator. This layered approach can reduce the likelihood of false signals and improve overall trading accuracy. As always, be sure to use any indicator with price action and volume indicators for better trade confirmation!
Pine Script® indicator
by MYNAMEISBRANDON
1
HTF Trend IdentificationThis indicator identifies higher timeframe (HTF) trends and plots them on the chart. It uses a fixed higher timeframe input and a selectable source to calculate the HTF value. The indicator also plots an EMA and colors the candles based on the HTF trend and EMA crossover. **Features:** * **HTF Trend Identification:** Calculates and plots a higher timeframe trend based on a user-defined source and fixed timeframe. This allows you to visualize the larger trend context on your current chart. * **Repainting Option:** Provides a toggle to control whether the HTF calculation repaints. Disabling repainting ensures that past HTF signals remain fixed, but may introduce a slight lag. Enabling repainting provides more up-to-date signals, but can cause past signals to change. * **Customizable Colors:** Allows users to set custom colors for uptrends and downtrends. * **EMA Plot:** Includes an Exponential Moving Average (EMA) plot with a customizable length and offset. The EMA color changes based on the HTF trend. * **Candle Coloring:** Colors the candles based on the HTF trend, providing a clear visual representation of the overall trend direction. * **Alerts:** (This would require adding alert conditions to the code, which I can do if you'd like) Could be extended to include alerts for HTF trend changes or EMA crossovers. **Inputs:** * **Repainting:** On/Off toggle to control repainting of the HTF calculation. * **Source:** Select the source for HTF calculations (e.g., close, open, high, low, etc.). * **Fixed Higher Timeframe:** Set the higher timeframe for trend calculation (e.g., 1D, 4H, 1W). *Note: Timeframes smaller than the current chart's timeframe are not allowed.* * **Up Color:** Color for uptrends. * **Down Color:** Color for downtrends. * **EMA Length 1:** Length of the EMA. * **Offset:** Offset for the EMA plot. **How to Use:** 1. Add the indicator to your chart. 2. Configure the inputs to your desired settings. 3. Observe the plotted HTF trend line, EMA, and candle colors to identify potential trading opportunities. **Limitations:** * **Repainting:** Enabling repainting can cause past HTF signals to change. Use with caution. * **No Alerts (by default):** This version does not include alerts. However, this can be added if requested. **Author:** atulgalande75 **Disclaimer:** This script is for educational purposes only and should not be considered financial advice. Use at your own risk.
Pine Script® indicator
by AtulGalande
Custom Length Moving AverageThe Custom Length Moving Average is a dynamic indicator that allows traders to plot a moving average with an adjustable length based on their preferred number of days. Users can choose between Simple Moving Average (SMA), Exponential Moving Average (EMA), or Weighted Moving Average (WMA) to match their trading strategy. The script automatically calculates the moving average length by factoring in the chart’s timeframe and trading session duration, ensuring precision and adaptability. This makes it an ideal tool for traders looking for a flexible moving average that adjusts to different market conditions and timeframes.
Pine Script® indicator
by RustamTaveri
Heikin-Ashi Trend ScalpHeikin-Ashi Trend Scalp is an indicator for TradingView, designed to identify short-term trends and entry points based on Heikin-Ashi candles and EMA crossovers. Key Features: Attention Signals: Early warning of potential entry points. Buy/Sell Signals: Filtered signals based on the prevailing trend. Filters (Slow Mode, Shadow Filter): Help reduce the number of false signals. Shadow Filter: Eliminates false signals caused by shadows against the trend. The warning bar should not have any shadow against the trend. If the bar with the buy/sell signal has a shadow that crosses the opening level of the warning bar, the signal disappears. Since the signal may disappear as the candle forms, entries should only be made after the signal has been confirmed. It is not recommended to disable the Shadow Filter, as doing so may lead to an increase in false signals. Slow Mode: Reduces false signals by using longer-term EMA crossovers. For timeframes of 1–5 minutes, it is recommended to use Slow Mode to reduce false signals. EMA Lines (7, 21, 50): Displayed for trend determination. Depending on the selected mode: in standard mode, EMA 21 (fast) is shown, in Slow Mode, the longer-term EMA 50 (slow) is displayed. Stop-Loss Price: Automatically set at the opening level of the candle two bars ago and displayed on the chart. RSI: Displays the current value of the RSI indicator and visualizes it with color: Red — for overbought conditions (above 70). Green — for oversold conditions (below 30). Yellow — for values in the neutral zone (between 30 and 70). Alerts: Notifications for new signals in real-time. The indicator is ideal for scalping and short-term trading, especially when used in conjunction with other technical analysis tools.
Pine Script® indicator
by jasonvhs
2
EMA Crossover Backtest [BarScripts]This indicator lets you backtest an EMA crossover strategy with built-in risk management and trade tracking. It simulates long and short trades based on EMA crossovers, allowing you to fine-tune entry conditions, stop-loss placement, and reward/risk settings. 🔹 How It Works: Long Entry: Fast EMA crosses above Slow EMA, and price closes above Fast EMA. Short Entry: Fast EMA crosses below Slow EMA, and price closes below Fast EMA. Stop Loss: Set based on previous bars or a fixed amount. Take Profit: Adjustable reward/risk ratio. Higher Timeframe Confluence: Confirms trades based on a larger timeframe. Trade Hours Filter: Limits trades to specific time windows. 🔹 Key Features: ✅ Shows Entry & Exit Points with visual trade lines. ✅ Customizable EMA Lengths to fit any strategy. ✅ P&L Tracking & Statistics to measure performance. ✅ Position Sizing Options: Fixed position, fixed risk, or percentage of balance. ✅ Commissions Tracking (based on total trades, not contracts). Use this tool to fine-tune your EMA crossover strategy and see how it performs over time! 🚀 💬 Let me know your feedback—suggest improvements, report issues, or request new features!
Pine Script® indicator
by BarScripts
1
BullDozz MA-CandlesticksBullDozz MA-Candlesticks 🏗️📊 The BullDozz MA-Candlesticks indicator transforms traditional candlesticks by replacing their Open, High, Low, and Close values with various types of Moving Averages (MAs). This helps traders visualize market trends with smoother price action, reducing noise and enhancing decision-making. 🔹 Features: ✅ Choose from multiple MA types: SMA, EMA, WMA, DEMA, TEMA, LSMA ✅ Customizable MA period for flexibility ✅ Candlestick colors based on trend: Green for bullish, Red for bearish ✅ Works on any market and timeframe This indicator is perfect for traders who want a clearer perspective on price movement using moving average-based candlesticks. 🚀 Try it now and refine your market analysis! 📈🔥
Pine Script® indicator
by Malvika3564
MTF Sqz by The CrazyChrisCC – MTF Sqz/EMA I create this script to easily be able to see the EMA and the Squeeze on multiple time frame at the same time and to easily create alert without going to each time frame to activate them. Here how it work : TF/EMA : This section show all 13 different time frame with a variable background color. The background color refer to the EMA 8 , 21 and 50. If all EMA are stack up ( ema 8 above ema 21 and ema 21 above ema 50) the background will be Green. If the EMA are stack down ( ema 8 below ema 21 and ema 21 below ema 50) the background will be Red. If the EMA are mix (no direction) the background will be Yellow. Sqz : 1. This section show the squeeze for each time frame - Green background = no squeeze - Gray background = low squeeze - Red background = medium squeeze - Orange background = high squeeze 2. This section also show A+Up or A+Down : - A+Up = EMA stack UP + medium or high squeeze + momentum increase - A+Down = EMA stack Down + medium or high squeeze + momentum decrease Buy Zone : - Bz (green background) = Price between EMA 8 and EMA 21 + EMA stack Up + Medium or High squeeze - Sz (red background) = Pirce between EMA 21 and EMA 8 + EMA stack Down + Medium or High squeeze Best part of this indicator are the Alert !!! : They will advert when the price action is in the good spot for long or short depending of what kind of alert you set. (These alert are for information only, you choose by yourself if you want to go long or short or do nothing!) I personally only used this indicator on the Bullish side ( I’m more of a bullish trader than a bearish trader) but I put different type of alert for all kind of trader. First you need to go on the setting of this indicator to set the king of alert you want. By default it will activate alert for the Bullish ‘A+ Up + Bz’ condition ( I remove the 1 min , 3 min, daily, weekly and monthly alert to not receive too much alert) Also before I set the alert I habitually choose a chart time frame of 30 min or around. The reason is if I choose a time frame to short I will received too much alert and if I choose a time frame too long I will not received enough alert but everyone each preference, you have the choose the best time frame that fit your kind of trading To activate alert, go to the 3 dots (… , more) on the indicator title than chose the first option ( add alert on cc – MTF sqz) than click ‘Create’. From now every time frame that was already select in the setting of this indicator will be monitor and give you an alert when the conditions are met. I also add some information the TICK indicator, the daily ATR and the Market cap for information purpose only. Good trading to all Feel free to comment or add request to this indicator, I try my best to respond to everyone
Pine Script® indicator
by TheCrazyChris
4
High-Probability IndicatorExplanation of the Code Trend Filter (EMA): A 50-period Exponential Moving Average (EMA) is used to determine the overall trend. trendUp is true when the price is above the EMA. trendDown is true when the price is below the EMA. Momentum Filter (RSI): A 14-period RSI is used to identify overbought and oversold conditions. oversold is true when RSI ≤ 30. overbought is true when RSI ≥ 70. Volatility Filter (ATR): A 14-period Average True Range (ATR) is used to measure volatility. ATR is multiplied by a user-defined multiplier (default: 2.0) to set a volatility threshold. Ensures trades are only taken during periods of sufficient volatility. Entry Conditions: Long Entry: Price is above the EMA (uptrend), RSI is oversold, and the candle range exceeds the ATR threshold. Short Entry: Price is below the EMA (downtrend), RSI is overbought, and the candle range exceeds the ATR threshold. Exit Conditions: Take Profit: A fixed percentage above/below the entry price. Stop Loss: A fixed percentage below/above the entry price. Visualization: The EMA is plotted on the chart. Background colors highlight uptrends and downtrends. Buy and sell signals are displayed as labels on the chart. Alerts: Alerts are triggered for buy and sell signals. How to Use the Indicator Trend Filter: Only take trades in the direction of the trend (e.g., long in an uptrend, short in a downtrend). Momentum Filter: Look for oversold conditions in an uptrend for long entries. Look for overbought conditions in a downtrend for short entries. Volatility Filter: Ensure the candle range exceeds the ATR threshold to avoid low-volatility trades. Risk Management: Use the built-in take profit and stop loss levels to manage risk. Optimization Tips Backtesting: Test the indicator on multiple timeframes and assets to evaluate its performance. Adjust the input parameters (e.g., EMA length, RSI length, ATR multiplier) to optimize for specific markets. Combination with Other Strategies: Add additional filters, such as volume analysis or support/resistance levels, to improve accuracy. Risk Management: Use proper position sizing and risk-reward ratios to maximize profitability. Disclaimer No indicator can guarantee an 85% win ratio due to the inherent unpredictability of financial markets. This script is provided for educational purposes only. Always conduct thorough backtesting and paper trading before using any strategy in live trading. Let me know if you need further assistance or enhancements!
Pine Script® indicator
by FaizanNawazz
EMA Study Script for Price Action Traders, v2JR_EMA Research Tool Documentation Version 2 Enhancements Version 2 of the JR_EMA Research Tool introduces several powerful features that make it particularly valuable for studying price action around Exponential Moving Averages (EMAs). The key improvements focus on tracking and analyzing price-EMA interactions: 1. Cross Detection and Counting - Implements flags for crossing bars that instantly identify when price crosses above or below the EMA - Maintains running counts of closes above and below the EMA - This feature helps students understand the persistence of trends and the frequency of EMA interactions 2. Bar Number Tracking - Records the specific bar number when EMA crosses occur - Stores the previous crossing bar number for reference - Enables precise measurement of time between crosses, helping identify typical trend durations 3. Variable Reset Management - Implements sophisticated reset logic for all counting variables - Ensures accuracy when analyzing multiple trading sessions - Critical for maintaining clean data when studying patterns across different timeframes 4. Cross Direction Tracking - Monitors the direction of the last EMA cross - Helps students identify the current trend context - Essential for understanding trend continuation vs reversal scenarios Educational Applications Price-EMA Relationship Studies The tool provides multiple ways to study how price interacts with EMAs: 1. Visual Analysis - Customizable EMA bands show typical price deviation ranges - Color-coded fills help identify "normal" vs "extreme" price movements - Three different band calculation methods offer varying perspectives on price volatility 2. Quantitative Analysis - Real-time tracking of closes above/below EMA - Running totals help identify persistent trends - Cross counting helps understand typical trend duration Research Configurations EMA Configuration - Adjustable EMA period for studying different trend timeframes - Customizable EMA color for visual clarity - Ideal for comparing different EMA periods' effectiveness Bands Configuration Three distinct calculation methods: 1. Full Average Bar Range (ABR) - Uses the entire range of price movement - Best for studying overall volatility 2. Body Average Bar Range - Focuses on the body of the candle - Excellent for studying conviction in price moves 3. Standard Deviation - Traditional statistical approach - Useful for comparing to other technical studies Signal Configuration - Optional signal plotting for entry/exit studies - Helps identify potential trading opportunities - Useful for backtesting strategy ideas Using the Tool for Study Basic Analysis Steps 1. Start with the default 20-period EMA 2. Observe how price interacts with the EMA line 3. Monitor the data window for quantitative insights 4. Use band settings to understand normal price behavior Advanced Analysis 1. Pattern Recognition - Use the cross counting system to identify typical pattern lengths - Study the relationship between cross frequency and trend strength - Compare different timeframes for fractal analysis 2. Volatility Studies - Compare different band calculation methods - Identify market regimes through band width changes - Study the relationship between volatility and trend persistence 3. Trend Analysis - Use the closing price count system to measure trend strength - Study the relationship between trend duration and subsequent reversals - Compare different EMA periods for optimal trend following Best Practices for Research 1. Systematic Approach - Start with longer timeframes and work down - Document observations about price behavior in different market conditions - Compare results across multiple symbols and timeframes 2. Data Collection - Use the data window to record significant events - Track the number of bars between crosses - Note market conditions when signals appear 3. Optimization Studies - Test different EMA periods for your market - Compare band calculation methods for your trading style - Document which settings work best in different market conditions Technical Implementation Notes This tool is particularly valuable for educational purposes because it combines visual and quantitative analysis in a single interface, allowing students to develop both intuitive and analytical understanding of price-EMA relationships.
Pine Script® indicator
by JR_PA
TrendMasterPro_FekonomiTrend Change and Start Signals with Weighted Conditions The Trend Change and Start Signals with Weighted Conditions indicator leverages various technical analysis tools to generate reliable buy and sell signals. This indicator helps investors more accurately identify trend changes and start signals in the market. Features: Utilizes popular technical analysis tools such as MACD, RSI, EMA, and Ichimoku Cloud. Enhances signal accuracy with additional indicators like ADX and Volume Increase. Allows users to adjust the weights of each condition to set their importance. The Confidence Level parameter lets you adjust the accuracy rate of the signals. Visual Signals make it easy to track buy and sell points directly on the chart. How It Works: Condition Weights: Users assign weights to indicators like MACD, RSI, EMA, and Ichimoku Cloud. If you have no idea, use default settings. Condition Fulfillment: Checks if the conditions for each indicator are met. Confidence Level: The total weight of the fulfilled conditions must exceed the user-defined confidence level. Signal Generation: When these conditions are met, a buy or sell signal is generated and visually displayed on the chart. Customization: Personalize Signals: By adjusting the weights of the indicators used, you can personalize the signals to match your trading strategy and preferences. Use Cases: Short-Term Investments: Identify quick trend changes for short-term trading decisions. Long-Term Investments: Detect long-term trend starts and changes for strategic investment decisions. Technical Analysis: Combine different technical analysis tools for more comprehensive and reliable analyses. With this indicator, you can better understand market movements and make more informed investment decisions. Try it now and enhance your trading strategy! by Fekonomi
Pine Script® indicator
by fekonomi
1
Scalping trading system based on 4 ema linesScalping Trading System Based on 4 EMA Lines Overview: This is a scalping trading strategy built on signals from 4 EMA moving averages: EMA(8), EMA(12), EMA(24) and EMA(72). Conditions: - Time frame: H1 (1 hour). - Trading assets: Applicable to major currency pairs with high volatility - Risk management: Use a maximum of 1-2% of capital for each transaction. The order holding time can be from a few hours to a few days, depending on the price fluctuation amplitude. Trading rules: Determine the main trend: Uptrend: EMA(8), EMA(12) and EMA(24) are above EMA(72). Downtrend: EMA(8), EMA(12) and EMA(24) are below EMA(72). Trade in the direction of the main trend** (buy in an uptrend and sell in a downtrend). Entry conditions: - Only trade in a clearly trending market. Uptrend: - Wait for the price to correct to the EMA(24). - Enter a buy order when the price closes above the EMA(24). - Place a stop loss below the bottom of the EMA(24) candle that has just been swept. Downtrend: - Wait for the price to correct to the EMA(24). - Enter a sell order when the price closes below the EMA(24). - Place a stop loss above the top of the EMA(24) candle that has just been swept. Take profit and order management: - Take profit when the price moves 20 to 40 pips in the direction of the trade. Use Trailing Stop to optimize profits instead of setting a fixed Take Profit. Note: - Do not trade within 30 minutes before and after the announcement of important economic news, as the price may fluctuate abnormally. Additional filters: To increase the success rate and reduce noise, this strategy uses additional conditions: 1. The price is calculated only when the candle closes (no repaint). 2. When sweeping through EMA(24), the price needs to close above EMA(24). 3. The closing price must be higher than 50% of the candle's length. 4. **The bottom of the candle sweeping through EMA(24) must be lower than the bottom of the previous candle (liquidity sweep). --- Alert function: When the EMA(24) sweep conditions are met, the system will trigger an alert if you have set it up. - Entry point: The closing price of the candle sweeping through EMA(24). - Stop Loss: - Buy Order: Place at the bottom of the sweep candle. - Sell Order: Place at the top of the sweep candle. --- Note: This strategy is designed to help traders identify profitable trading opportunities based on trends. However, no strategy is 100% guaranteed to be successful. Please test it thoroughly on a demo account before using it.
Pine Script® indicator
by Paulhdvn
1
EMA Crossover PredictionThis indicator predicts potential EMA crossovers by analyzing the rate of change between short and long EMAs. It calculates future EMA values based on current trends and displays predicted crossover points with their estimated timeframe and price level. The script uses customizable periods for both EMAs and forecast length, making it adaptable for different trading timeframes. Green labels indicate predicted bullish crossovers (short EMA crossing above long EMA), while red labels show bearish crossover predictions (short EMA crossing below long EMA).
Pine Script® indicator
by similarTruffle68357
4 EMA & MACDThe indicator that combines Moving Average and MACD into one is very useful for providing a more complete picture of the market. Here's how it works: Moving Average (MA): This is a trend indicator that smooths the price to show the dominant trend direction. MA helps traders determine whether the market is in an uptrend, downtrend, or sideways. For example, if the price is above the MA, it might indicate an uptrend, while if the price is below the MA, it might indicate a downtrend. MACD (Moving Average Convergence Divergence): MACD measures market momentum and can provide entry and exit signals based on the difference between two moving averages (fast MA and slow MA). A buy signal occurs when the MACD crosses above the signal line, and a sell signal occurs when the MACD crosses below the signal line. Combining both gives traders a more complete view: MA provides an overview of the larger trend direction. MACD helps identify moments when momentum supports a position for entering or exiting. Common usage: Entry: If the price is above the Moving Average (uptrend) and the MACD shows a buy signal (for example, MACD crossing above the signal line), it can be a signal to buy. Exit: If the price starts moving below the MA and the MACD shows a sell signal, it can be a signal to sell or exit the position. There is an indicator called MACD + Moving Average Cross, which combines both elements, providing stronger signals and making it easier to follow the market.
Pine Script® indicator
by fathulk
8
Liquidity Trap Detector (LTD)The Liquidity Trap Detector is an advanced trading tool designed to identify liquidity zones and potential traps set by institutional players. It provides traders with a comprehensive framework to align with smart money movements, helping them avoid common retail pitfalls such as bull and bear traps. The indicator focuses on detecting liquidity sweeps, breaker blocks, and areas of institutional accumulation/distribution. It integrates multiple technical analysis methods to offer high-probability signals and insights into how liquidity dynamics unfold in the market. Note : This indicator is not designed for beginners; it is intended for traders who already have a solid understanding of trading fundamentals. It is tailored for individuals who are familiar with concepts like liquidity, order blocks, and traps. Traders with at least 6 months to 1 year of trading experience will fully appreciate the power and potential of this indicator, as they will have the necessary knowledge to leverage its features effectively. Beginners may find it challenging to grasp the advanced concepts embedded in this tool. Why Combine These Elements? The components of the Liquidity Trap Detector are carefully chosen to address the core challenges of identifying institutional activity and liquidity traps. Here’s why each element is included and how they work together: 1. Order Blocks: • Purpose: Identify zones where large institutional players accumulate or distribute positions. • Role in the Indicator: These zones act as primary liquidity areas, where price is likely to reverse or consolidate due to significant order flow. 2. Breaker Blocks: • Purpose: Highlight areas where liquidity has been swept, leading to potential price reversals or continuations. • Role in the Indicator: Confirms whether a liquidity trap has occurred and provides actionable levels for entry or exit. 3. ATR-Based Volatility Zones: • Purpose: Filter signals based on market volatility to ensure trades align with statistically significant price movements. • Role in the Indicator: Defines dynamic support and resistance zones, improving the accuracy of signal generation. 4. Volume Delta: • Purpose: Measure the imbalance between aggressive buyers and sellers, often indicating institutional activity. • Role in the Indicator: Validates whether a liquidity trap is backed by smart money absorption or retail-driven momentum. 5. Trend Confirmation (EMA): • Purpose: Align liquidity trap signals with the broader market trend, reducing false positives. • Role in the Indicator: Ensures trades are executed in the direction of the prevailing trend. What Makes It Unique? 1. Gen 1 Liquidity Zones and Traps: • The indicator identifies Gen 1 Liquidity Zones, which represent the first areas where liquidity is accumulated or swept. While these zones often lead to reversals, they can sometimes fail, resulting in continuation moves. The indicator highlights these scenarios, helping traders adapt. • For example, a bull trap identified in a Gen 1 Zone may see price move higher after an initial red candle, completing a secondary liquidity sweep before reversing. 2. Multi-Layer Signal Validation: • Signals are only generated when liquidity, volume, trend, and volatility align. This ensures high-probability setups and reduces noise in choppy markets. 3. Dynamic Adaptability: • ATR-based zones and volume delta filtering allow the indicator to adapt to different market conditions, from trending to range-bound environments. 4. Institutional Insights: • By focusing on liquidity sweeps, order blocks, and volume imbalances, the indicator helps traders align with institutional strategies rather than retail behavior. How It Works The Liquidity Trap Detector uses a step-by-step process to identify and validate liquidity traps: 1. Identifying Liquidity Zones: • Order Blocks: Mark key zones of institutional activity where price is likely to reverse. • Breaker Blocks: Highlight areas where liquidity sweeps have occurred, signaling potential traps. 2. Filtering with Volatility (ATR): • ATR defines dynamic support and resistance zones, ensuring signals are only generated near significant price levels. 3. Validating Traps with Volume Delta: • Volume delta shows whether liquidity sweeps are backed by aggressive buying/selling from institutions, confirming the trap’s validity. 4. Aligning with Market Trends: • EMA ensures signals align with the broader trend to reduce false positives. 5. Monitoring Gen 1 Liquidity Zones: • The indicator highlights Gen 1 Liquidity Zones where price may initially reverse or sweep further before a true reversal. Traders are alerted to potential continuation scenarios if volume or momentum suggests unmet liquidity above/below the zone. How to Use It Buy Signal: • Triggered when: • Price sweeps below an order block and forms a breaker block, indicating a liquidity trap. • Volume delta confirms aggressive selling absorption. • ATR volatility zone supports the reversal. • EMA confirms a bullish trend. • Action: Enter a Buy trade and set: • Stop Loss (SL): Below the order block. • Take Profit (TP): Near the next resistance or liquidity zone. Sell Signal: • Triggered when: • Price sweeps above an order block and forms a breaker block, indicating a liquidity trap. • Volume delta confirms aggressive buying absorption. • ATR volatility zone supports the reversal. • EMA confirms a bearish trend. • Action: Enter a Sell trade and set: • SL: Above the order block. • TP: Near the next support or liquidity zone. Timeframes: • Best suited for scalping and intraday trading on lower timeframes (5m, 15m, 1H). • Can also be applied to swing trading on higher timeframes. Example Scenarios: 1. Bull Trap in a Gen 1 Zone: • Price sweeps above a resistance order block, forms a breaker block, and reverses sharply. However, if momentum persists, price may continue higher after a minor pullback. The indicator helps traders anticipate this by monitoring volume and trend shifts. 2. Bear Trap with Secondary Sweep: • Price sweeps below a support order block but fails to reverse immediately, instead forming a secondary liquidity sweep before turning bullish. The indicator highlights both scenarios, allowing for flexible trade management. Why Use It? The Liquidity Trap Detector offers: 1. Precision: Combines multiple filters to identify institutional liquidity traps with high accuracy. 2. Adaptability: Works across trending and range-bound markets. 3. Smart Money Alignment: Helps traders avoid retail traps by focusing on liquidity sweeps and institutional behavior.
Pine Script® indicator
by TradeTechanalysis