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MACD Trend Trading with Dynamic Position Sizing // AlgoFyreThe MACD Trend Trading with Dynamic Position Sizing strategy combines MACD and trend indicators for trend trading. It uses MACD crossovers to identify entry points and a trend source for directional bias. The strategy incorporates risk management through dynamic position sizing based on a fixed risk amount. It allows for both long and short positions with customizable stop-loss and take-profit levels. The script includes visualization options for entry, stop-loss, and take-profit levels, enhancing trade analysis. TABLE OF CONTENTS 🔶 ORIGINALITY 🔸Dynamic Position Sizing 🔸Trend-MACD Combination 🔸Customizable Risk Management 🔶 FUNCTIONALITY 🔸Indicators 🞘 Trend Indicator 🞘 Moving Average Convergence Divergence (MACD) 🔸Conditions 🞘 Long Entry 🞘 Short Entry 🔶 INSTRUCTIONS 🔸Step-by-Step Guidelines 🞘 Setting Up the Strategy 🞘 Alerts 🔸Customize settings 🔶 CONCLUSION ▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅▅ 🔶 ORIGINALITY The MACD Trend Trading with Dynamic Position Sizing strategy uniquely combines MACD indicators with trend analysis to optimize entry and exit points. Unlike static trading strategies, it employs dynamic position sizing based on a fixed risk amount, ensuring consistent risk management. This approach allows traders to adapt to varying market conditions by adjusting position sizes according to predefined risk parameters, enhancing both flexibility and control in trading decisions. The strategy's integration of customizable stop-loss and take-profit levels further refines its risk management capabilities, making it a robust tool for both trending and volatile markets. 🔸Dynamic Position Sizing This strategy calculates position sizes dynamically, based on a fixed risk amount, allowing traders to maintain consistent risk exposure across trades. 🔸Trend-MACD Combination By combining trend direction with MACD crossovers, the strategy enhances the accuracy of entry signals, aligning trades with prevailing market trends. 🔸Customizable Risk Management Traders can set flexible risk-reward ratios and adjust stop-loss and take-profit levels, tailoring the strategy to their risk tolerance and market conditions. 🔶 FUNCTIONALITY The MACD Trend Trading with Dynamic Position Sizing strategy leverages a combination of trend indicators and the MACD to identify optimal trading opportunities. This strategy is designed to capitalize on short-term price movements by dynamically adjusting position sizes based on predefined risk parameters. It allows traders to manage risk effectively while taking advantage of both long and short positions. 🔸Indicators 🞘 Trend Indicator: Utilizes the trend source to determine market direction, ensuring trades align with prevailing trends. Recommendation: We recommend using the Adaptive MAs (Hurst, CVaR, Fractal) indicator with the following settings for trend detection. However, you can use any trend indicator that suits your trading style. 🞘 Moving Average Convergence Divergence (MACD): Employs MACD crossovers to generate entry signals, enhancing the accuracy of trade execution. Use the "Moving Average Convergence Divergence" Indicator with the following settings: 🔸Conditions 🞘 Long Entry: Initiates a long position when the price is above the trend source, and a MACD crossover occurs with both MACD and signal lines below zero. 🞘 Short Entry: Initiates a short position when the price is below the trend source, and a MACD crossunder occurs with both MACD and signal lines above zero. 🔶 INSTRUCTIONS The MACD Trend Trading with Dynamic Position Sizing strategy can be set up by adding it to your TradingView chart and configuring parameters such as the MACD source, trend source, and risk management settings. This strategy is designed to capitalize on short-term price movements by dynamically adjusting position sizes based on predefined risk parameters. Enhance the accuracy of signals by combining this strategy with additional indicators like trend-following or momentum-based tools. Adjust settings to better manage risk and optimize entry and exit points. 🔸Step-by-Step Guidelines 🞘 Setting Up the Strategy Adding the Strategy to the Chart: Go to your TradingView chart. Click on the "Indicators" button at the top. Search for "MACD Trend Trading with Dynamic Position Sizing" in the indicators list. Click on the strategy to add it to your chart. Configuring the Strategy: Open the strategy settings by clicking on the gear icon next to its name on the chart. MACD: Select the MACD from the MACD Indicator. MACD Signal: Select the MACD Signal from the MACD Indicator. Trend Source: Choose the trend source to determine market direction. If you use the Adaptive MAs (Hurst, CVaR, Fractal) with our settings shown above, choose the MA1 Smoothing Line. Stop Loss Percentage: Set the stop loss distance from the trend source as a percentage. Risk/Reward Ratio: Define the desired risk/reward ratio for trades. Backtesting and Practice: Backtest the strategy on historical data to understand how it performs in various market environments. Practice using the strategy on a demo account before implementing it in live trading. Market Awareness: Keep an eye on market news and events that might cause extreme price movements. The strategy reacts to price data and might not account for news-driven events that can cause large deviations. 🔶 CONCLUSION The MACD Trend Trading with Dynamic Position Sizing strategy provides a robust framework for capitalizing on short-term market trends by combining the MACD indicator with dynamic position sizing. This strategy leverages MACD crossovers to identify entry points and utilizes a trend source for directional bias, ensuring trades align with prevailing market conditions. By incorporating dynamic position sizing based on a fixed risk amount, traders can effectively manage risk and adapt to varying market conditions. The strategy's customizable stop-loss and take-profit levels further enhance its risk management capabilities, making it a versatile tool for both trending and volatile markets. With its strategic blend of technical indicators and risk management, the MACD Trend Trading strategy offers traders a comprehensive approach to optimizing trade execution and maximizing potential returns.
Pine Script® strategy
by AlgoFyre
Divergence Indicator Multi [TradingFinder] MACD AO RSI DIV Chart🔵 Introduction 🟣 What is Divergence in Financial Markets? Divergence in technical analysis happens when the price of a stock moves in a direction opposite to certain indicators. This is a crucial concept in financial markets as it can signal either a trend reversal or a continuation of the current correction in the trend. Understanding divergence helps traders and analysts make more informed decisions. 🟣 Positive Regular Divergence (RD+) A positive regular divergence occurs at the end of a downtrend, where two price lows form. This divergence appears when the price chart shows a new low, but the indicator does not follow, signaling potential buying opportunities. Positive divergence indicates increased buying pressure and reduced selling pressure, making it a useful signal for forecasting price increases. 🟣 Negative Regular Divergence (RD-) A negative regular divergence is seen during an uptrend when two price highs form. The price chart records a new high, but the indicator does not reflect this change, suggesting that a market downturn is likely. This type of divergence shows strong selling pressure and weaker buying activity, which can help identify selling opportunities. Both positive and negative divergences are powerful tools for identifying potential trend reversals and key support and resistance levels. For example, when an indicator trends upward while the price moves downward, this creates divergence, warning traders to reconsider their investment strategy. 🟣 Different Types of Divergence in Trading 1. Regular Divergence : o Positive Regular Divergence (RD+) o Negative Regular Divergence (RD-) 2. Hidden Divergence : o Positive Hidden Divergence (HD+) o Negative Hidden Divergence (HD-) 3.Time Divergence. Note : This guide focuses specifically on Regular Divergence. 🟣 What is Regular Divergence? Regular Divergence, often referred to as convergence, occurs when price action and indicators show conflicting patterns, usually signaling the end of a trend. Detecting regular divergence helps traders anticipate potential trend reversals or the formation of reversal patterns. 🔵 How to Use To optimize the detection of divergence, you can adjust the Fractal Period to specify the length of time for identifying divergence patterns. Additionally, with the Divergence Detection Method, you can select oscillators like the MACD, RSI, or AO to base divergence detection on. Divergence in MACD : MACD divergence occurs when the price chart forms an opposite pattern compared to the MACD line, indicating a potential price reversal. Divergence in RSI : In a downtrend, if the price chart forms two consecutive lows with the second lower than the first, but the RSI shows two lows with the second higher, this indicates positive regular divergence, which is a buy signal. On the other hand, during an uptrend, if the price forms two highs with the second higher than the first, but the RSI shows the second high lower, this points to negative regular divergence, indicating a sell signal. Divergence in AO (Awesome Oscillator) : The AO indicator calculates histograms using the difference between 5-period and 34-period simple moving averages. It compares peaks and troughs of these histograms with price movements, detecting divergence and plotting lines and arrows to signal divergence. 🔵 Table The following table breaks down the main features of the oscillator. It covers four critical categories: Exist, Consecutive, Divergence Quality, and Change Phase Indicator. Exist : If divergence is detected, a "+" will appear in this row. Consecutive: Shows the number of consecutive divergences that have formed in a short period. Divergence Quality : Evaluates the quality of the divergence based on the number of occurrences. One is labeled "Normal," two are "Good," and three or more are considered "Strong." Change Phase Indicator : If a phase change is detected between two oscillation peaks, this is marked in the table.
Pine Script® indicator
by TFlab
4
Adaptive MA Scalping StrategyAdaptive MA Scalping Strategy The Adaptive MA Scalping Strategy is an innovative trading approach that merges the strengths of the Kaufman's Adaptive Moving Average (KAMA) with the Moving Average Convergence Divergence (MACD) histogram. This combination results in a momentum-adaptive moving average that dynamically adjusts to market conditions, providing traders with timely and reliable signals. How It Works Kaufman's Adaptive Moving Average (KAMA): Unlike traditional moving averages, KAMA adjusts its sensitivity based on market volatility. It becomes more responsive during trending markets and less sensitive during periods of consolidation, effectively filtering out market noise. MACD Histogram Integration: The strategy incorporates the MACD histogram, a momentum indicator that measures the difference between a fast and a slow exponential moving average (EMA). By adding the MACD histogram values to the KAMA, the strategy creates a new line—the momentum-adaptive moving average (MOMA)—which captures both trend direction and momentum. Signal Generation: Long Entry: The strategy enters a long position when the closing price crosses above the MOMA. This indicates a potential upward momentum shift. Exit Position: The position is closed when the closing price crosses below the MOMA, signaling a potential decline in momentum. Cloud Calculation Detail The MOMA is calculated by adding the MACD histogram value to the KAMA of the price. This addition effectively adjusts the KAMA based on the momentum indicated by the MACD histogram. When momentum is strong, the MACD histogram will have higher values, causing the MOMA to adjust accordingly and provide earlier entry or exit signals. Performance on Stocks This strategy has demonstrated excellent performance on stocks when applied to the 1-hour timeframe. Its adaptive nature allows it to respond swiftly to market changes, capturing profitable trends while minimizing the impact of false signals caused by market noise. The combination of KAMA's adaptability and MACD's momentum detection makes it particularly effective in volatile market conditions commonly seen in stock trading. Key Parameters KAMA Length (malen): Determines the sensitivity of the KAMA. A length of 100 is used to balance responsiveness with noise reduction. MACD Fast Length (fast): Sets the period for the fast EMA in the MACD calculation. A value of 24 helps in capturing short-term momentum changes. MACD Slow Length (slow): Sets the period for the slow EMA in the MACD calculation. A value of 52 smooths out longer-term trends. MACD Signal Length (signal): Determines the period for the signal line in the MACD calculation. An 18-period signal line is used for timely crossovers. Advantages of the Strategy Adaptive to Market Conditions: By adjusting to both volatility and momentum, the strategy remains effective across different market phases. Enhanced Signal Accuracy: The fusion of KAMA and MACD reduces false signals, improving the accuracy of trade entries and exits. Simplicity in Execution: With straightforward entry and exit rules based on price crossovers, the strategy is user-friendly for traders at all experience levels
Pine Script® strategy
by UnknownUnicorn13336802
BRT MACD CustomBRT MACD Custom — Adaptive and Flexible MACD for Multi-Timeframe Analysis The BRT MACD Custom is an advanced version of the traditional MACD indicator, offering additional flexibility and adaptability for multi-timeframe trading. This custom script allows traders to adjust the calculation parameters for MACD to suit their specific trading strategy, timeframe, and market conditions. Key Features Multi-Timeframe Support Unlike the standard MACD, this indicator lets you choose a specific timeframe (different from the chart timeframe) for calculating MACD values. This feature provides more flexibility in analyzing market trends on multiple timeframes without changing the main chart. Example: You can analyze MACD on a 15-minute timeframe even when your chart is set to 1-minute, giving you broader market insights. Customizable EMA and Signal Settings Users can adjust the fast and slow EMA lengths as well as the signal smoothing to better align with their preferred trading strategies. The script allows switching between the two popular types of moving averages — SMA or EMA — for both the MACD and the signal line. Volatility-Based Adaptive EMA The script includes an adaptive mechanism for EMA calculation. When the selected timeframe closes, the indicator dynamically adjusts the calculation, ensuring the MACD values respond quickly to market volatility. This makes the indicator more reactive compared to static MACD implementations. Shift Options for MACD, Signal, and Histogram The indicator allows shifting the MACD, signal line, and histogram values by one or more bars. This can be useful for backtesting and simulating strategies where you anticipate future price movements. Signal Alerts for Long and Short Trades The script generates visual signals when certain conditions are met, indicating potential long or short trade opportunities. These signals are based on MACD and histogram crossovers: Long Signal: Triggered when MACD is above the signal line and both are rising. Short Signal: Triggered when MACD is below the signal line and both are falling. Custom Plotting The MACD line, signal line, and histogram are plotted on the chart for easy visualization. The histogram changes colors to reflect positive or negative momentum: Green shades when MACD is above the signal line. Red shades when MACD is below the signal line. Applications in Trading The BRT MACD Custom is ideal for traders who need flexibility in their technical analysis. Its multi-timeframe capabilities and customizable moving averages make it suitable for day trading, swing trading, and long-term investing across a variety of markets. Scalping: Use the 1-minute or 5-minute timeframe to identify short-term trends while calculating MACD on a higher timeframe such as 15 or 30 minutes. Swing Trading: Apply the indicator on 1-hour or 4-hour charts to detect mid-term trends. Long-Term Investing: Analyze daily or weekly charts with longer EMA periods to confirm market direction before making large investments.
Pine Script® indicator
by BRTLab
1
MACD Enhanced Strategy MTF with Stop Loss [LTB]Test strategy for MACD This strategy, named "MACD Enhanced Strategy MTF with Stop Loss ," is a modified Moving Average Convergence Divergence (MACD) strategy with enhancements such as multi-timeframe (MTF) analysis, custom scoring, and a dynamic stop loss mechanism. Let’s break down how to effectively use it: Key Elements of the Strategy MACD Indicator with Modifications: The strategy uses MACD, a well-known momentum indicator, with customizable parameters: fastLength, slowLength, and signalLength represent the standard MACD settings. Instead of relying solely on MACD crossovers, it introduces scoring parameters for histogram direction (histside), indicator direction (indiside), and signal cross (crossscore). This allows for a more nuanced decision-making process when determining buy and sell signals. Multi-Timeframe Analysis (MTF): The strategy compares the current timeframe's MACD score with that of a higher timeframe (HTF). It dynamically selects the higher timeframe based on the current timeframe. For example, if the current chart period is 1, it will select 5 as the higher timeframe. This MTF approach aims to align trades with broader trends, filtering out false signals that could be present when analyzing only a single timeframe. Scoring System: A custom scoring system (count() function) is used to evaluate buy and sell signals. This includes calculations based on the direction and momentum of MACD (indi) and the histogram. The score is used to determine the strength of signals. Positive scores indicate bullish sentiment, while negative scores indicate bearish sentiment. This scoring mechanism aims to reduce the influence of noise and provide more reliable entries. Entry Conditions: Long Condition: When the Result value (a combination of MTF and current MACD analysis) changes and becomes positive, a long entry is triggered. Short Condition: When the Result changes and becomes negative, a short entry is initiated. Stop Loss Mechanism: The countstop() function calculates dynamic stop loss values for both long and short trades. It is based on the Average True Range (ATR) multiplied by a factor (Mult), providing adaptive stop loss levels depending on market volatility. The stop loss is plotted on the chart to show potential risk levels for open trades, with the line appearing only if shotsl is enabled. How to Use the Strategy To properly use the strategy, follow these steps: Parameter Optimization: Adjust the input parameters such as fastLength, slowLength, and signalLength to tune the MACD indicator to the specific asset you’re trading. The values provided are typical defaults, but optimizing these values based on backtesting can help improve performance. Customize the scoring parameters (crossscore, indiside, histside) to balance how much weight you want to put on the direction, histogram, and cross events of the MACD indicator. Select Appropriate Timeframes: This strategy employs a multi-timeframe (MTF) approach, so it's important to understand how the higher timeframe (HTF) is selected based on the current timeframe. For instance, if you are trading on a 5-minute chart, the higher timeframe will be 15 minutes, which helps filter out lower timeframe noise. Ensure you understand the relationship between the timeframe you’re using and the HTF it automatically selects. The strategy’s effectiveness can vary depending on how these timeframes align with the asset’s overall volatility. Run Backtests: Always backtest the strategy over historical data to determine its reliability for the asset and timeframes you’re interested in. Note that the MTF approach may require substantial data to capture how different timeframes interact. Use the backtest results to adjust the scoring parameters or the Stop Loss Factor (Mult) for better risk management. Stop Loss Usage: The stop loss is calculated dynamically using ATR, which means that it adjusts with changing volatility. This can be useful to avoid being stopped out too often during periods of increased volatility. The shotsl parameter can be set to true to visualize the stop loss line on the chart. This helps to monitor the protection level and make better decisions regarding holding or closing a trade manually. Entry Signals and Trade Execution: Look for changes in the Result value to determine entry points. For a long position, the Result needs to become positive, and for a short position, it must be negative. Note that the strategy's entries are more conservative because it waits for the Result to confirm the direction using multiple factors, which helps filter out false breakouts. Risk Management: The adaptive stop loss mechanism reduces the risk by basing the stop level on market volatility. However, you must still consider additional risk management practices such as position sizing and profit targets. Given the scoring mechanism, it might not enter trades frequently, which means using this strategy may result in fewer but potentially more accurate trades. It’s important to be patient and not force trades that don’t align with the calculated results. Real-Time Monitoring: Make sure to monitor trades actively. Since the strategy recalculates the score on each bar, real-time changes in the Result value could provide exit opportunities even if the stop loss isn't triggered. Summary The "MACD Enhanced Strategy MTF with Stop Loss " is a sophisticated version of the MACD strategy, enhanced with multi-timeframe analysis and adaptive stop loss. Properly using it involves optimizing MACD and scoring parameters, selecting suitable timeframes, and actively managing entries and exits based on a combination of scoring and volatility-based stop losses. Always conduct thorough backtesting before applying it in a live environment to ensure the strategy performs well on the asset you're trading.
Pine Script® strategy
by skigoogs
4
Momentum-Based Buy/Sell SignalsBuy Signal: Triggered when ROC > threshold and the MACD line crosses above the Signal line. Sell Signal: Triggered when ROC < threshold and the MACD line crosses below the Signal line. Visual Elements: Green labels with "Buy" are displayed below the bars for buy signals. Red labels with "Sell" are displayed above the bars for sell signals. The background turns green during a buy signal and red during a sell signal for better visual clarity.
Pine Script® indicator
by motibhawan
1
Custom MACD Oscillator with Bar ColoringCustom MACD Oscillator with Bar Coloring This custom MACD indicator is a fusion of two powerful MACD implementations, combining the best features of both the MACD Crossover by HPotter and the Multiple Time Frame Custom MACD Indicator by ChrisMoody. The indicator enhances the traditional MACD with customizable options and dynamic bar coloring based on the relationship between the MACD and Signal lines, providing a clear visual representation of momentum shifts in the market. Key Features: MACD Oscillator: Built on the core MACD principle, showing the difference between two Exponential Moving Averages (EMA) for momentum tracking. Signal Line: A Simple Moving Average (SMA) of the MACD, helping to identify potential entry/exit points through crossovers. Multiple Time Frame Support: Allows users to view MACD and Signal data from different timeframes, giving a broader view of the market dynamics. Bar Coloring: Bars are colored green when the MACD is above the Signal line (bullish), red when the MACD is below (bearish), and blue during neutral conditions. Histogram with Custom Colors: A customizable histogram visualizes the difference between the MACD and Signal lines with color-coding to represent changes in momentum. Cross Dots: Visual markers at points where the MACD crosses the Signal line for easy identification of potential trend shifts. This indicator is a versatile tool for traders who want to visualize MACD-based momentum and crossover signals in multiple timeframes with clear visual cues on price bars.
Pine Script® indicator
by marcelift
2
Volume Wave Trend ConfirmationUtility of the Indicator The core utility of this indicator lies in its ability to utilize volume, a less frequently exploited metric in MACD analysis, providing several strategic advantages: Trend Confirmation: By focusing on volume, the indicator confirms whether movements in price are backed by significant trading activity. A rising MACD line above the signal line, paired with increasing volume, can confirm the strength of an uptrend. Conversely, if the histogram turns negative while the MACD line falls below the signal line during a price drop, it confirms a robust downtrend. Early Warning Signals: Changes in the histogram and divergences between the MACD and Signal lines can serve as early warnings of potential reversals or slowdowns in market momentum. For instance, a shrinking histogram in an uptrend might suggest that the upward movement is losing steam. Market Sentiment: The integration of volume into the MACD framework allows the indicator to provide insights into underlying market sentiment. Higher volumes during price movements indicate stronger conviction among traders, making the trend more reliable. Indicator Functionality The "Volume Wave Trend Confirmation" indicator is built on the Moving Average Convergence Divergence (MACD) framework, but with a unique twist: it uses the smoothed moving averages (SMA) of trading volumes instead of price. The indicator calculates two specific SMAs of the volume — a shorter 33-period SMA and a longer 100-period SMA — and computes their difference. This difference is then used as the input for the MACD calculation, with typical parameters set at 12, 26, and a signal line of 9. MACD Line (Blue): Represents the main line, calculated as the difference between the 12-period and 26-period exponential moving averages (EMA) of the volume difference. Signal Line (Orange): A 9-period EMA of the MACD line, acting as a trigger for buy or sell signals. Histogram (Blue/Purple): Measures the distance between the MACD line and the Signal line, colored blue when positive (above the Signal line) and purple when negative (below the Signal line).
Pine Script® indicator
by UnknownUnicorn13336802
5
VWAP PressureKey Features and Utility: Intrabar Focus: Unlike standard VWAP, which provides a cumulative average throughout the day, the Intrabar VWAP focuses on volume-weighted price calculations within shorter time frames. This allows traders to see how price and volume interact moment-to-moment, offering a granular view of market sentiment. Market Pressure Analysis: The indicator examines the difference between a smoothed weighted average price of the close and intrabar price movements. This analysis helps in identifying the market pressure at high volume areas. When the market exhibits high volume at low prices within a bar, it suggests accumulation, whereas high volume at high prices indicates distribution. Momentum and Pressure Shift Signals: By applying a modified MACD calculation to the smoothed difference, the indicator provides signals on shifts in market pressure. Positive values indicate upward price momentum (buying pressure), while negative values suggest downward momentum (selling pressure).
Pine Script® indicator
by UnknownUnicorn13336802
Market DirectionThe "Market Direction" indicator combines four advanced sub-indicators to provide a comprehensive and multi-dimensional analysis of market trends, momentum, and potential reversals. This innovative approach leverages different aspects of price action, volume, and market sentiment, offering traders an in-depth view of market conditions. 1. Fractal Indicator: Multi-Scale Price Action Analysis The Fractal Indicator identifies significant highs and lows over six different pivot lengths, offering a nuanced view of price action across multiple timeframes. By comparing distances from current closing prices to these key fractal points, the indicator determines potential trend reversals and market direction. This approach enables traders to adapt their strategies to various market conditions, capturing both short-term fluctuations and long-term trends. 2. Volume MACD Indicator: Enhanced Market Momentum The Volume MACD Indicator goes beyond traditional MACD analysis by incorporating volume-weighted movement and the structural attributes of candlesticks (such as body length and wicks). This hybrid model offers a more comprehensive understanding of market momentum by integrating both price action and trading volume. The use of Smoothed Moving Averages (SMMA) reduces noise and ensures more stable signals, helping traders focus on sustainable trends and longer-term investment opportunities. 3. Cumulative Volume Momentum Indicator: Volume Dynamics Insight The Cumulative Volume Momentum Indicator evaluates the momentum of cumulative buying and selling volumes, offering a clear picture of market strength and potential reversals. By comparing the relationship between open, close, high, and low prices, and applying a MACD approach to these volume dynamics, this indicator helps traders identify momentum shifts that often precede price movements. The visualization through histograms adds clarity to bullish and bearish volume momentum, enhancing decision-making in volatile markets. 4. POC-Price Momentum Indicator: Market Depth and Sentiment The POC-Price Momentum Indicator assesses the difference between the Point of Control (POC) and closing prices, providing insights into underlying market sentiment. Positive differences indicate a buildup of upward momentum, while negative differences suggest a bearish tilt. By calculating moving averages of these differences, the indicator highlights the strength and sustainability of ongoing trends, helping traders align their strategies with the broader market direction. Unified Rating for Confirming Market Direction The "Market Direction" indicator consolidates the outputs of these four sub-indicators into a single, aggregated sentiment score. This score helps traders confirm the prevailing market trend by weighing the combined insights from fractal analysis, volume momentum, price action, and POC dynamics. A positive score suggests a bullish market, while a negative score indicates bearish conditions.
Pine Script® indicator
by UnknownUnicorn13336802
1
RSI Trend Following StrategyOverview The RSI Trend Following Strategy utilizes Relative Strength Index (RSI) to enter the trade for the potential trend continuation. It uses Stochastic indicator to check is the price is not in overbought territory and the MACD to measure the current price momentum. Moreover, it uses the 200-period EMA to filter the counter trend trades with the higher probability. The strategy opens only long trades. Unique Features Dynamic stop-loss system: Instead of fixed stop-loss level strategy utilizes average true range (ATR) multiplied by user given number subtracted from the position entry price as a dynamic stop loss level. Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions. Two layers trade filtering system: Strategy utilizes MACD and Stochastic indicators measure the current momentum and overbought condition and use 200-period EMA to filter trades against major trend. Trailing take profit level: After reaching the trailing profit activation level script activates the trailing of long trade using EMA. More information in methodology. Wide opportunities for strategy optimization: Flexible strategy settings allows users to optimize the strategy entries and exits for chosen trading pair and time frame. Methodology The strategy opens long trade when the following price met the conditions: RSI is above 50 level. MACD line shall be above the signal line Both lines of Stochastic shall be not higher than 80 (overbought territory) Candle’s low shall be above the 200 period EMA When long trade is executed, strategy set the stop-loss level at the price ATR multiplied by user-given value below the entry price. This level is recalculated on every next candle close, adjusting to the current market volatility. At the same time strategy set up the trailing stop validation level. When the price crosses the level equals entry price plus ATR multiplied by user-given value script starts to trail the price with trailing EMA(by default = 20 period). If price closes below EMA long trade is closed. When the trailing starts, script prints the label “Trailing Activated”. Strategy settings In the inputs window user can setup the following strategy settings: ATR Stop Loss (by default = 1.75) ATR Trailing Profit Activation Level (by default = 2.25) MACD Fast Length (by default = 12, period of averaging fast MACD line) MACD Fast Length (by default = 26, period of averaging slow MACD line) MACD Signal Smoothing (by default = 9, period of smoothing MACD signal line) Oscillator MA Type (by default = EMA, available options: SMA, EMA) Signal Line MA Type (by default = EMA, available options: SMA, EMA) RSI Length (by default = 14, period for RSI calculation) Trailing EMA Length (by default = 20, period for EMA, which shall be broken close the trade after trailing profit activation) Justification of Methodology This trading strategy is designed to leverage a combination of technical indicators—Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), Stochastic Oscillator, and the 200-period Exponential Moving Average (EMA)—to determine optimal entry points for long trades. Additionally, the strategy uses the Average True Range (ATR) for dynamic risk management to adapt to varying market conditions. Let's look in details for which purpose each indicator is used for and why it is used in this combination. Relative Strength Index (RSI) is a momentum indicator used in technical analysis to measure the speed and change of price movements in a financial market. It helps traders identify whether an asset is potentially overbought (overvalued) or oversold (undervalued), which can indicate a potential reversal or continuation of the current trend. How RSI Works? RSI tracks the strength of recent price changes. It compares the average gains and losses over a specific period (usually 14 periods) to assess the momentum of an asset. Average gain is the average of all positive price changes over the chosen period. It reflects how much the price has typically increased during upward movements. Average loss is the average of all negative price changes over the same period. It reflects how much the price has typically decreased during downward movements. RSI calculates these average gains and losses and compares them to create a value between 0 and 100. If the RSI value is above 70, the asset is generally considered overbought, meaning it might be due for a price correction or reversal downward. Conversely, if the RSI value is below 30, the asset is considered oversold, suggesting it could be poised for an upward reversal or recovery. RSI is a useful tool for traders to determine market conditions and make informed decisions about entering or exiting trades based on the perceived strength or weakness of an asset's price movements. This strategy uses RSI as a short-term trend approximation. If RSI crosses over 50 it means that there is a high probability of short-term trend change from downtrend to uptrend. Therefore RSI above 50 is our first trend filter to look for a long position. The MACD (Moving Average Convergence Divergence) is a popular momentum and trend-following indicator used in technical analysis. It helps traders identify changes in the strength, direction, momentum, and duration of a trend in an asset's price. The MACD consists of three components: MACD Line: This is the difference between a short-term Exponential Moving Average (EMA) and a long-term EMA, typically calculated as: MACD Line = 12 period EMA − 26 period EMA Signal Line: This is a 9-period EMA of the MACD Line, which helps to identify buy or sell signals. When the MACD Line crosses above the Signal Line, it can be a bullish signal (suggesting a buy); when it crosses below, it can be a bearish signal (suggesting a sell). Histogram: The histogram shows the difference between the MACD Line and the Signal Line, visually representing the momentum of the trend. Positive histogram values indicate increasing bullish momentum, while negative values indicate increasing bearish momentum. This strategy uses MACD as a second short-term trend filter. When MACD line crossed over the signal line there is a high probability that uptrend has been started. Therefore MACD line above signal line is our additional short-term trend filter. In conjunction with RSI it decreases probability of following false trend change signals. The Stochastic Indicator is a momentum oscillator that compares a security's closing price to its price range over a specific period. It's used to identify overbought and oversold conditions. The indicator ranges from 0 to 100, with readings above 80 indicating overbought conditions and readings below 20 indicating oversold conditions. It consists of two lines: %K: The main line, calculated using the formula (CurrentClose−LowestLow)/(HighestHigh−LowestLow)×100 . Highest and lowest price taken for 14 periods. %D: A smoothed moving average of %K, often used as a signal line. This strategy uses stochastic to define the overbought conditions. The logic here is the following: we want to avoid long trades in the overbought territory, because when indicator reaches it there is a high probability that the potential move is gonna be restricted. The 200-period EMA is a widely recognized indicator for identifying the long-term trend direction. The strategy only trades in the direction of this primary trend to increase the probability of successful trades. For instance, when the price is above the 200 EMA, only long trades are considered, aligning with the overarching trend direction. Therefore, strategy uses combination of RSI and MACD to increase the probability that price now is in short-term uptrend, Stochastic helps to avoid the trades in the overbought (>80) territory. To increase the probability of opening long trades in the direction of a main trend and avoid local bounces we use 200 period EMA. ATR is used to adjust the strategy risk management to the current market volatility. If volatility is low, we don’t need the large stop loss to understand the there is a high probability that we made a mistake opening the trade. User can setup the settings ATR Stop Loss and ATR Trailing Profit Activation Level to realize his own risk to reward preferences, but the unique feature of a strategy is that after reaching trailing profit activation level strategy is trying to follow the trend until it is likely to be finished instead of using fixed risk management settings. It allows sometimes to be involved in the large movements. Backtest Results Operating window: Date range of backtests is 2023.01.01 - 2024.08.01. It is chosen to let the strategy to close all opened positions. Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks. Initial capital: 10000 USDT Percent of capital used in every trade: 30% Maximum Single Position Loss: -3.94% Maximum Single Profit: +15.78% Net Profit: +1359.21 USDT (+13.59%) Total Trades: 111 (36.04% win rate) Profit Factor: 1.413 Maximum Accumulated Loss: 625.02 USDT (-5.85%) Average Profit per Trade: 12.25 USDT (+0.40%) Average Trade Duration: 40 hours These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters. How to Use Add the script to favorites for easy access. Apply to the desired timeframe and chart (optimal performance observed on 2h BTC/USDT). Configure settings using the dropdown choice list in the built-in menu. Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}} Disclaimer: Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
Pine Script® strategy
by Skyrexio
Scalping with Williams %R, MACD, and SMA (1m)Overview: This trading strategy is designed for scalping in the 1-minute timeframe. It uses a combination of the Williams %R, MACD, and SMA indicators to generate buy and sell signals. It also includes alert functionalities to notify users when trades are executed or closed. Indicators Used: Williams %R : A momentum indicator that measures overbought and oversold conditions. The Williams %R values range from -100 to 0. Length: 140 bars (i.e., 140-period). MACD (Moving Average Convergence Divergence) : A trend-following momentum indicator that shows the relationship between two moving averages of a security's price. Fast Length: 24 bars Slow Length: 52 bars MACD Length: 9 bars (signal line) SMA (Simple Moving Average) : A trend-following indicator that smooths out price data to create a trend-following indicator. Length: 7 bars Conditions and Logic: Timeframe Check : The strategy is designed specifically for the 1-minute timeframe. If the current chart is not on the 1-minute timeframe, a warning label is displayed on the chart instructing the user to switch to the 1-minute timeframe. Williams %R Conditions : Buy Condition: The strategy looks for a crossover of Williams %R from below -94 to above -94. This indicates a potential buying opportunity when the market is moving out of an oversold condition. Sell Condition: The strategy looks for a crossunder of Williams %R from above -6 to below -6. This indicates a potential selling opportunity when the market is moving out of an overbought condition. Deactivate Buy: If Williams %R crosses above -40, the buy signal is deactivated, suggesting that the buying condition is no longer valid. Deactivate Sell: If Williams %R crosses below -60, the sell signal is deactivated, suggesting that the selling condition is no longer valid. MACD Conditions : MACD Histogram: Used to identify the momentum and the direction of the trend. Long Entry: The strategy initiates a buy order if the MACD histogram shows a positive bar after a negative bar while a buy condition is active and Williams %R is above -94. Long Exit: The strategy exits the buy position if the MACD histogram turns negative and is below the previous histogram bar. Short Entry: The strategy initiates a sell order if the MACD histogram shows a negative bar after a positive bar while a sell condition is active and Williams %R is below -6. Short Exit: The strategy exits the sell position if the MACD histogram turns positive and is above the previous histogram bar. Trend Confirmation (Using SMA) : Bullish Trend: The strategy considers a bullish trend if the current price is above the 7-bar SMA. A buy signal is only considered if this condition is met. Bearish Trend: The strategy considers a bearish trend if the current price is below the 7-bar SMA. A sell signal is only considered if this condition is met. Alerts: Long Entry Alert: An alert is triggered when a buy order is executed. Long Exit Alert: An alert is triggered when the buy order is closed. Short Entry Alert: An alert is triggered when a sell order is executed. Short Exit Alert: An alert is triggered when the sell order is closed. Summary: Buy Signal: Activated when Williams %R crosses above -94 and the price is above the 7-bar SMA. A buy order is placed if the MACD histogram shows a positive bar after a negative bar. The buy order is closed when the MACD histogram turns negative and is below the previous histogram bar. Sell Signal: Activated when Williams %R crosses below -6 and the price is below the 7-bar SMA. A sell order is placed if the MACD histogram shows a negative bar after a positive bar. The sell order is closed when the MACD histogram turns positive and is above the previous histogram bar. This strategy combines momentum (Williams %R), trend-following (MACD), and trend confirmation (SMA) to identify trading opportunities in the 1-minute timeframe. It is designed for short-term trading or scalping.
Pine Script® strategy
by girishmanuja
3
long&short signal Smart Money Concepts (SMC) with MACD Signals Smart Money Concepts (SMC) with MACD Signals Advanced SMC and MACD Integration for Precision Trading The "Smart Money Concepts (SMC) with MACD Signals" indicator is a powerful and versatile tool designed to enhance trading strategies by integrating two highly effective technical analysis methods into a single, cohesive indicator. This advanced script combines the Smart Money Concepts (SMC) methodology with the Moving Average Convergence Divergence (MACD) indicator to provide traders with a comprehensive trading solution that identifies key market trends and potential trading opportunities. What It Does: Smart Money Concepts (SMC): The SMC component of this indicator identifies significant price levels and zones where market participants, particularly institutional investors, may be active. It calculates high and low anchor levels based on historical price data, creating zones that help traders understand where price action may encounter support or resistance. These anchor levels are used to plot background colors on the chart, highlighting critical areas of interest where price might react, and generating buy (long) and sell (short) signals based on price interactions with these levels. MACD (Moving Average Convergence Divergence): The MACD component provides insights into market momentum and trend strength. By calculating the difference between two moving averages and comparing it to a signal line, the MACD indicator helps traders identify potential changes in trend direction. The script plots the MACD line, signal line, and histogram, offering a clear visual representation of market momentum. Buy (long) and sell (short) signals are generated when the MACD line crosses above or below the signal line, providing timely alerts to potential trading opportunities. Why It’s Special: This indicator stands out for its dual functionality, combining the price level analysis of SMC with the momentum-based insights of MACD. The integration allows traders to benefit from both trend and price level analysis, offering a more robust and accurate trading tool. The SMC component highlights critical price zones and provides context for price action, while the MACD component confirms the strength and direction of market trends. By using this combined approach, traders can make more informed decisions based on comprehensive market analysis. The indicator not only helps in identifying significant price levels and potential market reversals but also provides real-time signals to capitalize on these opportunities. Whether you are a day trader or a swing trader, the "Smart Money Concepts (SMC) with MACD Signals" indicator is designed to enhance your trading strategy with precision and clarity. This unique combination of SMC and MACD offers a powerful toolset for traders looking to refine their trading strategies and improve their market analysis. With its user-friendly visualizations and signal generation, this indicator is an essential addition to any trader’s toolkit.
Pine Script® indicator
by Ahmednesserat
1
Volume-Weighted RSI with HMA SmoothingThis script combines a Volume-Weighted RSI, smoothed with a custom Hull Moving Average (HMA), with a modified MACD based on normalized net volume. Volume-Weighted RSI: It is calculated by adjusting the closing price with a normalized On-Balance Volume (OBV) and then applying an RSI. This approach weights the RSI according to volume, providing a more accurate measure of the strength of the price movement. Modified HMA: A Hull Moving Average (HMA) is used to smooth the Volume-Weighted RSI, enhancing the ability to identify market trend changes. Possible Reversal from Oversold: The Volume-Weighted RSI crosses above the oversold level. It is displayed as an upward green triangle at the bottom of the chart, indicating that the market might be exhausting its oversold conditions and potentially starting an upward reversal. Possible Reversal from Overbought: The Volume-Weighted RSI crosses below the overbought level. It is displayed as a downward red triangle at the top of the chart, indicating that the market might be exhausting its overbought conditions and potentially starting a downward reversal. Confirmation with the Modified MACD: For a more robust interpretation, the behavior of the modified MACD can be observed alongside the RSI cross. The MACD is also modified, using normalized net volume (calculated as the cumulative change in the closing price multiplied by volume) as the input instead of the standard closing price. The direction and color change of the MACD bars indicate the market's momentum. Alerts: Alerts are set to trigger automatically when the modified RSI crosses the oversold or overbought levels. Español: Este script combina un RSI ponderado por volumen, suavizado con un Hull Moving Average (HMA) personalizado, con un MACD modificado basado en volumen neto normalizado. RSI Ponderado por Volumen: Se calcula ajustando el precio de cierre con un OBV (On-Balance Volume) normalizado y luego aplicando un RSI. Este enfoque pondera el RSI según el volumen, proporcionando una medida más precisa de la fuerza del movimiento del precio. HMA Modificado: Se utiliza un Hull Moving Average (HMA) para suavizar el RSI Ponderado por Volumen, mejorando la capacidad de identificar cambios en la tendencia del mercado. Posible Reversión desde Sobreventa: El RSI Ponderado por Volumen cruza por encima del nivel de sobreventa. Se muestra como un triángulo verde hacia arriba en la parte inferior del gráfico, indicando que el mercado podría estar agotando las condiciones de sobreventa y comenzar una posible reversión al alza. Posible Reversión desde Sobrecompra: El RSI Ponderado por Volumen cruza por debajo del nivel de sobrecompra. Se muestra como un triángulo rojo hacia abajo en la parte superior del gráfico, indicando que el mercado podría estar agotando las condiciones de sobrecompra y comenzar una posible reversión a la baja. Confirmación con el MACD Modificado: Para una interpretación más robusta, se puede observar el comportamiento del MACD modificado junto con el cruce del RSI. El MACD también está modificado, utilizando el volumen neto normalizado (calculado como el cambio acumulativo en el precio de cierre multiplicado por el volumen) como entrada en lugar del precio de cierre estándar. La dirección y el cambio de color de las barras del MACD indican el impulso del mercado. Alertas: Las alertas están configuradas para activarse automáticamente cuando el RSI modificado cruza los niveles de sobreventa o sobrecompra.
Pine Script® indicator
by PINE_LABS
[KVA] KMACDKMACD Indicator: Advanced Market Analysis Through Central Tendency Metrics The KMACD (KAMVIA Moving Average Convergence Divergence) indicator is an advanced, multi-dimensional tool designed to provide traders and analysts with a deeper understanding of market dynamics. By integrating the classical MACD framework with statistical measures of central tendency, KMACD offers a sophisticated approach to identifying trends, reversals, and potential trading opportunities. Key Features of the KMACD Indicator: 1. Enhanced MACD Calculation : - The KMACD employs dual moving averages (fast and slow) of user-defined types (SMA, EMA, WMA) to calculate the MACD line, which represents the difference between these moving averages. This traditional approach is further enhanced by customizable signal smoothing, allowing users to fine-tune the sensitivity of the indicator. 2. Central Tendency Metrics : - The indicator integrates additional statistical measures, such as Mean, Median, Mode, Standard Deviation, and Variance, calculated over a rolling window. These metrics provide insights into the central tendencies of the MACD values, helping traders understand the overall trend direction and the dispersion of price movements around the trend. 3. RSI-Like Oscillator : - A unique RSI-like value derived from the MACD line is included to highlight overbought and oversold conditions. This offers a dual-layered perspective, combining the power of MACD and RSI methodologies, to signal potential market extremes with greater precision. 4. Customizable Visual Elements : - KMACD allows users to toggle the visibility of the MACD line, Signal line, and Histogram, providing flexibility in how the data is presented. The histogram dynamically changes color—green when above zero, indicating bullish momentum, and red when below zero, indicating bearish momentum. 5. Horizontal Line Customization : - The indicator includes customizable horizontal lines for the zero level, overbought, and oversold thresholds. These lines serve as visual cues to identify key price levels and market conditions. 6. Adaptive to Various Market Conditions : - KMACD's comprehensive features make it adaptable to various market conditions, from trending markets to sideways consolidations. Whether you're looking to capture momentum shifts or identify potential reversal points, KMACD provides the analytical power needed to make informed trading decisions. How to Use KMACD: - Trend Identification : Use the MACD line in conjunction with central tendency measures (Mean, Median, Mode) to gauge the overall market trend and its strength. A rising MACD line, supported by higher mean and median values, typically indicates an uptrend. - Momentum Analysis : The histogram and RSI-like value help in identifying the momentum behind price movements. Positive histogram bars suggest increasing bullish momentum, while negative bars suggest increasing bearish momentum. - Overbought/Oversold Conditions : Monitor the RSI-like oscillator and the overbought/oversold levels to detect when the market may be poised for a reversal. - Divergence Detection : Look for divergences between the MACD line and price action, supported by the central tendency measures, to spot potential reversal points. Conclusion The KMACD indicator is more than just a traditional MACD; it’s a comprehensive tool designed to cater to both novice and experienced traders. By incorporating central tendency metrics and customizable features, KMACD stands out as a versatile and powerful indicator that enhances market analysis and trading strategies. Whether you're navigating volatile markets or steady trends, KMACD offers the precision and depth needed to stay ahead.
Pine Script® indicator
by Kamvia
MACD with 1D Stochastic Confirmation Reversal StrategyOverview The MACD with 1D Stochastic Confirmation Reversal Strategy utilizes MACD indicator in conjunction with 1 day timeframe Stochastic indicators to obtain the high probability short-term trend reversal signals. The main idea is to wait until MACD line crosses up it’s signal line, at the same time Stochastic indicator on 1D time frame shall show the uptrend (will be discussed in methodology) and not to be in the oversold territory. Strategy works on time frames from 30 min to 4 hours and opens only long trades. Unique Features Dynamic stop-loss system: Instead of fixed stop-loss level strategy utilizes average true range (ATR) multiplied by user given number subtracted from the position entry price as a dynamic stop loss level. Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions. Higher time frame confirmation: Strategy utilizes 1D Stochastic to establish the major trend and confirm the local reversals with the higher probability. Trailing take profit level: After reaching the trailing profit activation level scrip activate the trailing of long trade using EMA. More information in methodology. Methodology The strategy opens long trade when the following price met the conditions: MACD line of MACD indicator shall cross over the signal line of MACD indicator. 1D time frame Stochastic’s K line shall be above the D line. 1D time frame Stochastic’s K line value shall be below 80 (not overbought) When long trade is executed, strategy set the stop-loss level at the price ATR multiplied by user-given value below the entry price. This level is recalculated on every next candle close, adjusting to the current market volatility. At the same time strategy set up the trailing stop validation level. When the price crosses the level equals entry price plus ATR multiplied by user-given value script starts to trail the price with EMA. If price closes below EMA long trade is closed. When the trailing starts, script prints the label “Trailing Activated”. Strategy settings In the inputs window user can setup the following strategy settings: ATR Stop Loss (by default = 3.25, value multiplied by ATR to be subtracted from position entry price to setup stop loss) ATR Trailing Profit Activation Level (by default = 4.25, value multiplied by ATR to be added to position entry price to setup trailing profit activation level) Trailing EMA Length (by default = 20, period for EMA, when price reached trailing profit activation level EMA will stop out of position if price closes below it) User can choose the optimal parameters during backtesting on certain price chart, in our example we use default settings. Justification of Methodology This strategy leverages 2 time frames analysis to have the high probability reversal setups on lower time frame in the direction of the 1D time frame trend. That’s why it’s recommended to use this strategy on 30 min – 4 hours time frames. To have an approximation of 1D time frame trend strategy utilizes classical Stochastic indicator. The Stochastic Indicator is a momentum oscillator that compares a security's closing price to its price range over a specific period. It's used to identify overbought and oversold conditions. The indicator ranges from 0 to 100, with readings above 80 indicating overbought conditions and readings below 20 indicating oversold conditions. It consists of two lines: %K: The main line, calculated using the formula (CurrentClose−LowestLow)/(HighestHigh−LowestLow)×100 . Highest and lowest price taken for 14 periods. %D: A smoothed moving average of %K, often used as a signal line. Strategy logic assumes that on 1D time frame it’s uptrend in %K line is above the %D line. Moreover, we can consider long trade only in %K line is below 80. It means that in overbought state the long trade will not be opened due to higher probability of pullback or even major trend reversal. If these conditions are met we are going to our working (lower) time frame. On the chosen time frame, we remind you that for correct work of this strategy you shall use 30min – 4h time frames, MACD line shall cross over it’s signal line. The MACD (Moving Average Convergence Divergence) is a popular momentum and trend-following indicator used in technical analysis. It helps traders identify changes in the strength, direction, momentum, and duration of a trend in a stock's price. The MACD consists of three components: MACD Line: This is the difference between a short-term Exponential Moving Average (EMA) and a long-term EMA, typically calculated as: MACD Line=12-period EMA−26-period Signal Line: This is a 9-period EMA of the MACD Line, which helps to identify buy or sell signals. When the MACD Line crosses above the Signal Line, it can be a bullish signal (suggesting a buy); when it crosses below, it can be a bearish signal (suggesting a sell). Histogram: The histogram shows the difference between the MACD Line and the Signal Line, visually representing the momentum of the trend. Positive histogram values indicate increasing bullish momentum, while negative values indicate increasing bearish momentum. In our script we are interested in only MACD and signal lines. When MACD line crosses signal line there is a high chance that short-term trend reversed to the upside. We use this strategy on 45 min time frame. ATR is used to adjust the strategy risk management to the current market volatility. If volatility is low, we don’t need the large stop loss to understand the there is a high probability that we made a mistake opening the trade. User can setup the settings ATR Stop Loss and ATR Trailing Profit Activation Level to realize his own risk to reward preferences, but the unique feature of a strategy is that after reaching trailing profit activation level strategy is trying to follow the trend until it is likely to be finished instead of using fixed risk management settings. It allows sometimes to be involved in the large movements. Backtest Results Operating window: Date range of backtests is 2023.01.01 - 2024.08.01. It is chosen to let the strategy to close all opened positions. Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks. Initial capital: 10000 USDT Percent of capital used in every trade: 30% Maximum Single Position Loss: -4.79% Maximum Single Profit: +20.14% Net Profit: +2361.33 USDT (+44.72%) Total Trades: 123 (44.72% win rate) Profit Factor: 1.623 Maximum Accumulated Loss: 695.80 USDT (-5.48%) Average Profit per Trade: 19.20 USDT (+0.59%) Average Trade Duration: 30 hours These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters. How to Use Add the script to favorites for easy access. Apply to the desired timeframe between 30 min and 4 hours and chart (optimal performance observed on 45 min BTC/USDT). Configure settings using the dropdown choice list in the built-in menu. Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}} Disclaimer: Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
Pine Script® strategy
by Skyrexio
2
Supply and Demand Zones with Enhanced SignalsThis Pine Script indicator combines supply and demand zone analysis with dynamic buy/sell signals to enhance trading strategies. It provides a robust framework for identifying optimal trading opportunities and managing existing trades. Key Features: Supply and Demand Zones: The indicator identifies significant supply and demand zones based on recent price action. These zones are plotted as horizontal lines to help traders visualize potential reversal points. Exponential Moving Average (EMA): A 21-period EMA is used to determine the prevailing trend and generate buy and sell signals. Relative Strength Index (RSI): The 14-period RSI is utilized to filter buy and sell signals, providing additional context on overbought and oversold conditions. Signal Generation: Buy Signal: Triggered when the price crosses above the EMA and RSI indicates that the market is not overbought. Sell Signal: Triggered when the price crosses below the EMA and RSI indicates that the market is not oversold. Enhanced Exit Signals: Exit Buy Signal: Generated if an opposite sell signal occurs or the higher timeframe RSI indicates overbought conditions. Exit Sell Signal: Generated if an opposite buy signal occurs or the higher timeframe RSI indicates oversold conditions. Trade Management: Tracks active trades and provides exit signals based on the occurrence of opposite trading signals. This helps in managing positions more effectively and reducing potential losses. Usage: Supply and Demand Zones: Look for price action around these zones to identify potential trading opportunities. EMA and RSI: Use buy and sell signals in conjunction with EMA and RSI to validate trading decisions. Higher Timeframe RSI: Utilize this for additional confirmation and exit signals. Plotting: Supply Zone: Plotted as a red horizontal line. Demand Zone: Plotted as a green horizontal line. EMA: Plotted as a blue line. Buy and Sell Signals: Indicated by green and red triangle shapes, respectively. Exit Signals: Indicated by blue and orange X shapes. This indicator is designed to help traders make informed decisions by combining technical analysis with strategic trade management.
Pine Script® indicator
by IJAlgo
11
Uptrick: MACD Slope Buy/Sell SignalsThe "Uptrick: MACD Slope Buy/Sell Signals" indicator is an advanced technical analysis tool meticulously crafted to provide traders with precise buy and sell signals derived from the slope changes of the Moving Average Convergence Divergence (MACD) signal line. This indicator integrates user-defined parameters for the MACD calculation, including the fast length, slow length, and signal smoothing period. These parameters allow traders to customize the indicator according to their specific trading strategies and timeframes, ensuring adaptability across various market conditions. The primary function of this indicator is to monitor the slope of the MACD signal line and detect significant shifts that indicate potential changes in market momentum. The indicator calculates the slope by comparing the current value of the signal line to its previous value, and further determines the change in slope to identify acceleration or deceleration in the trend. A buy signal is generated when the slope of the signal line transitions from negative to positive, signaling an upward momentum, while a sell signal is triggered when the slope moves from positive to negative, indicating a downward trend. To enhance signal accuracy, the indicator distinguishes between regular and strong signals. A strong buy signal requires the slope change to be greater than the simple moving average (SMA) of recent slope changes, whereas a strong sell signal necessitates the slope change to be less than the negative SMA of recent slope changes. A unique feature of this indicator is its dynamic and intuitive visualization. When a strong buy or sell signal is identified, it plots labels ('B' for buy and 'S' for sell) directly on the price chart. These labels are strategically positioned below or above the respective bars to ensure clear visibility and reduce chart clutter. The indicator also includes an option to connect consecutive signals with lines, which enhances the visual tracking of signal sequences and provides a coherent view of the trend's progression. The color intensity of the plotted signals varies based on the absolute value of the slope, offering an immediate visual cue on the strength of the detected trend changes. A steeper slope results in a darker color, signaling a stronger trend. To facilitate comprehensive analysis, the indicator also plots the MACD and signal lines on the chart, providing traders with a reference to the underlying data that drives the buy and sell signals. These lines are color-coded for easy differentiation: the MACD line is typically blue, and the signal line is orange. This visual aid ensures that traders have a clear understanding of the indicator's basis and can cross-reference the generated signals with the MACD behavior. The calculation of this indicator is grounded in well-established technical analysis principles. It employs the MACD function to derive the MACD line and signal line based on the user-defined parameters. The slope of the signal line is then computed, followed by the calculation of the slope change. The buy and sell signals are determined by comparing the current and previous slopes, and the strong signals are filtered through an additional layer of slope change analysis relative to its moving average. The accuracy and reliability of the "Uptrick: MACD Slope Buy/Sell Signals" indicator stem from its thorough and methodical approach to signal generation. By combining user customization, detailed slope analysis, and robust visual elements, this indicator serves as a powerful tool for traders seeking precise entry and exit points in the market. Its ability to adapt to different trading styles and market conditions, coupled with its clear visual cues, makes it a valuable addition to any trader's toolkit, enhancing decision-making and improving trading outcomes.
Pine Script® indicator
by Uptrick
Uptrick: Bullish/Bearish Signal DetectorDetailed Explanation of the "Uptrick: Bullish/Bearish Signal Detector" Script The "Uptrick: Bullish/Bearish Signal Detector" script is a sophisticated tool designed for the TradingView platform, leveraging Pine Script version 5. This script is crafted to enhance traders' ability to identify bullish (buy) and bearish (sell) signals directly on their trading charts. By combining the power of the MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index) indicators, this script provides a unique and efficient method for detecting potential trading opportunities. Below is an in-depth exploration of its purpose, features, and functionality. Purpose The primary purpose of this script is to assist traders in identifying potential entry and exit points in the market by signaling bullish and bearish conditions. This automated detection helps traders make more informed decisions without the need to manually analyze complex indicators. By overlaying signals directly on the price chart, the script allows for quick visual identification of market trends and reversals. Uniqueness What sets this script apart is its dual use of MACD and RSI indicators. While many trading strategies might rely on a single indicator, combining MACD and RSI enhances the reliability of the signals by filtering out false positives. The script not only identifies trends but also adds a layer of confirmation through the RSI, which measures the speed and change of price movements. Inputs and Features Customizable Label Appearance: The script allows users to customize the appearance of the labels that indicate bullish and bearish signals. Users can set their preferred colors for the labels and the text, ensuring that the signals are easily distinguishable and aesthetically pleasing on their charts. MACD Calculation: The script calculates the MACD line and signal line using user-defined input values for the fast length, slow length, and signal length. The MACD histogram, which is the difference between the MACD line and the signal line, is used to determine the momentum of the market. RSI Calculation: The RSI is calculated using a user-defined input length. The RSI helps in identifying overbought or oversold conditions, which are crucial for confirming the strength of the trend detected by the MACD. Bullish and Bearish Conditions: The script defines bullish conditions as those where the MACD histogram is positive and the RSI is above 50. Bearish conditions are defined where the MACD histogram is negative and the RSI is below 50. This combination of conditions ensures that signals are generated based on both momentum and relative strength, reducing the likelihood of false signals. Label Plotting: The script plots labels on the chart to indicate bullish and bearish signals. When a bullish condition is met, and the previous signal was not bullish, a "LONG" label is plotted. Similarly, when a bearish condition is met, and the previous signal was not bearish, a "SHORT" label is plotted. This feature helps in clearly marking the points of interest for traders, making it easier to spot potential trades. Tracking Previous Signals: To avoid repetitive signals, the script keeps track of the last signal. If the last signal was bullish, it avoids plotting another bullish signal immediately. The same logic applies to bearish signals. This tracking ensures that signals are spaced out and only significant changes in market conditions are highlighted. How It Works The script operates in a loop, processing each bar (or candlestick) on the chart as new data comes in. It calculates the MACD and RSI values for each bar and checks if the current conditions meet the criteria for a bullish or bearish signal. If a signal is detected and it is different from the last signal, a label is plotted on the chart at the current bar's price level. This real-time processing allows traders to see the signals as they form, providing timely insights into market movements. Practical Application For practical use, a trader would add this script to their TradingView chart. They can customize the input parameters for the MACD and RSI calculations to fit their trading strategy or preferred settings. Once added, the script will automatically analyze the price data and start plotting "LONG" and "SHORT" labels based on the detected signals. Traders can then use these labels to make decisions on entering or exiting trades, adjusting their strategy as necessary based on the signals provided. Conclusion The "Uptrick: Bullish/Bearish Signal Detector" script is a powerful tool for any trader looking to leverage technical indicators for better trading decisions. By combining MACD and RSI, it offers a robust method for detecting market trends and potential reversals. The customizable features and real-time signal plotting make it a versatile and user-friendly addition to any trading toolkit. This script not only simplifies the process of technical analysis but also enhances the accuracy of trading signals, thereby potentially increasing the trader's success rate in the market.
Pine Script® indicator
by Uptrick
5
Moving Average Crossover Swing StrategyMoving Average Crossover Swing Strategy **Overview:** The basic concept of this strategy is to generate a signal when a faster/shorter length moving average crosses over (for Longs) or crosses under (for Shorts) a medium/longer length moving average. All of which are customizable. This strategy can work on any timeframe, however the daily is the timeframe used for the default settings and screenshots, as it was designed to be a multi-day swing strategy. Once a signal has been confirmed with a candle close, based on user options, the strategy will enter the trade on the open of the next candle. The crossover strategy is nothing new to trading, but what can make this strategy unique and helpful, is the addition of further confirmation points, ATR based stop loss and take profit targets, optional early exit criteria, customizable to your needs and style, and just about everything visual can be toggled on/off. This strategy is based on a Trend (MA) indicator and a Momentum (MACD) indicator. While a Volume-based indicator is not shown here, one could consider using their favorite from that category to further compliment the signal idea. It should be noted that depending on the time frame, direction(s) chosen, the signal options, confirmation options, and exit options selected, that a ticker may not produce more than 100 trades on the back test. Depending on your style and frequency, one could consider adjusting options and/or testing multiple tickers. It should also be noted that this strategy simply tests the underlying stock prices, not options contracts. And of course, testing this strategy against historical data does not assume that the same results will occur in future price action. Shoutout given to Ripster's Clouds Indicator as pieces of that code were taken and modified to create both the Cloud visualization effects, and the Moving Average Pair Plots that are implemented in this strategy. BASIC DEFAULTS All can be changed as normal Initial capital = 10,000 Order Sizing = 25% of equity (use the "Inputs" tab to modify this) Pyramiding = 0 Commission = 0.65 USD per order Price Verification = 1 tick Slippage = 1 tick RISK MANAGMENT You will notice two different percentage options and ATR multipliers. This strategy will adjust position sizing by not exceeding either one of those % values based on the ATR (Average True Range) of the symbol and the multipliers selected, should the stock hit the stop loss price. For Example, lets assume these values are true: Account size = $10,000, Max Risk = 1% of account size Max Position Size = 25% of the account size Stock Price = 23.45 ATR = 3.5 ATR Stop Loss Multiplier = 1.4 Then the formulas would be: ACCT_SIZE * MaxRisk_% = 10000 * .01 = $100 (MaxCashRisk) ----- MaxCashRisk / (ATR * ATR_SL_MULTIPLIER) = 100 / (3.5 * 1.4) = 20.4 Shares based on Max Cash Risk ----- (ACCT_SIZE * MaxEquity_%) / STOCK_PRICE = (10000 * .25) / 23.45 = 106.61 Shares based on Max Equity Allocation The minimum value of each of those options is then used, which in this case would be to purchase 20 shares so as not to exceed the max dollar risk should the stock reach the stop loss target. Likewise, if the ATR were to be much lower, say 0.48 cents, and all else the same, then the strategy would purchase the 106 shares based on Max Equity Allocation because the Max Cash Risk would require 149.25 shares. MOVING AVERAGE OPTIONS Select between and change the length & type of up to 5 pairs (10 total) of moving averages The "Show Cloud-x" option will display a fill color between the "a" and "b" pairs All moving averages lines can be toggled on/off in the "Style" tab, as well as adjusting their colors. Visualization features do not affect calculations, meaning you could have all or nothing on the chart and the strategy will still produce results SIGNAL CHOICES Choose the fast/shorter length MA and the medium/longer length MA to determine the entry signal CONFIRMATION OPTIONS Both of these have customizable values and can be toggled on/off A candle close over a slower/much longer length moving average An additional cross-over (cross-under for Shorts) on the MACD indicator using default MACD values. While the MACD indicator is not necessary to have on the chart, it can help to add that for visualization. The calculations will perform whether the indicator is on the chart or not. EARLY EXIT CRITERIA Both can be toggled on/off with customizable values MA Cross Exit will exit the trade early if the select moving averages cross-under (for longs) or cross-over (for shorts), indicating a potential reversal. Max Bars in Trades will act as a last-resort exit by simply calculating the amount of full bars the trade has been open, and exiting on the opening of the next bar. For example: the default value is 8 bars, so after 8 full bars in the trade, if no other exit has been triggered (Stop Loss, Take Profit, or MA Cross(if enabled)), then the trade will exit at the opening of the 9th bar. Finally, there is a table displaying the amount of trades taken for each side, and the amount & percent of both early exits. This table can be turned off in the "Style" tab ADDITIONAL PLOTS MACD (Moving Average Convergence/Divergence): - The MACD is an optional confirmation indicator for this strategy. - Plotting the indicator is not necessary for the strategy to work, but it can be helpful to visually see the status and position of the MACD if this feature is enabled in the strategy - This helps to identify if there is also momentum behind the entry signal
Pine Script® strategy
by D_Rockefeller
2
Biquad MACDThis indicator reimagines the traditional MACD by incorporating a biquad band pass filter, offering a refined approach to identifying momentum and trend changes in price data. The standard MACD is essentially a band pass filter, but often it lacks precision. The biquad band pass filter addresses this limitation by providing a more focused frequency range, enhancing the quality of signals. The MACD Length parameter determines the length of the band pass filter, influencing the frequency range that is isolated. Adjusting this length allows you to focus on different parts of the price movement spectrum. The Bandwidth (BW) setting controls the width of the frequency band in octaves. It affects the smoothness of the MACD line. A larger bandwidth results in less smooth output, capturing a broader range of frequencies, while a smaller bandwidth focuses on a narrower range, providing a smoother signal. The Signal Length parameter sets the period for the exponential moving average of the MACD line, which acts as a signal line to identify potential buy and sell points. Key Features of the Biquad MACD The MACD is a well-known momentum indicator used to identify changes in the strength, direction, momentum, and duration of a trend in a stock's price. By applying a biquad band pass filter, this version of the MACD provides a more refined and accurate representation of price movements. The biquad filter offers smooth response and minimal phase distortion, making it ideal for technical analysis. The customizable MACD length and bandwidth allow for flexible adaptation to different trading strategies and market conditions. The signal line smooths the MACD values, providing clear crossover points to indicate potential market entry and exit signals. The histogram visually represents the difference between the MACD and the signal line, changing colors to indicate rising or falling momentum, which helps in quickly identifying trend changes. By incorporating the Biquad MACD into your trading toolkit, you can enhance your chart analysis with clearer insights into momentum and trend changes, leading to more informed trading decisions.
Pine Script® indicator
by The_Peaceful_Lizard
7