Marketmomentum — Indicators and Strategies

Market Participation Index [PhenLabs]📊 Market Participation Index Version: PineScript™ v6 📌 Description Market Participation Index is a well-evolved statistical oscillator that constantly learns to develop by adapting to changing market behavior through the intricate mathematical modeling process. MPI combines different statistical approaches and Bayes’ probability theory of analysis to provide extensive insight into market participation and building momentum. MPI combines diverse statistical thinking principles of physics and information and marries them for subtle changes to occur in markets, levels to become influential as important price targets, and pattern divergences to unveil before it is visible by analytical methods in an old-fashioned methodology. 🚀 Points of Innovation: Automatic market condition detection system with intelligent preset selection Multi-statistical approach combining classical and advanced metrics Fractal-based divergence system with quality scoring Adaptive threshold calculation using statistical properties of current market 🚨 Important🚨 The ‘Auto’ mode intelligently selects the optimal preset based on real-time market conditions, if the visualization does not appear to the best of your liking then select the option in parenthesis next to the auto mode on the label in the oscillator in the settings panel. 🔧 Core Components Statistical Foundation: Multiple statistical measures combined with weighted approach Market Condition Analysis: Real-time detection of market states (trending, ranging, volatile) Change Point Detection: Bayesian analysis for finding significant market structure shifts Divergence System: Fractal-based pattern detection with quality assessment Adaptive Visualization: Dynamic color schemes with context-appropriate settings 🔥 Key Features The indicator provides comprehensive market analysis through: Multi-statistical Oscillator: Combines Z-score, MAD, and fractal dimensions Advanced Statistical Components: Includes skewness, kurtosis, and entropy analysis Auto-preset System: Automatically selects optimal settings for current conditions Fractal Divergence Analysis: Detects and grades quality of divergence patterns Adaptive Thresholds: Dynamically adjusts overbought/oversold levels 🎨 Visualization Color-coded Oscillator: Gradient-filled oscillator line showing intensity Divergence Markings: Clear visualization of bullish and bearish divergences Threshold Lines: Dynamic or fixed overbought/oversold levels Preset Information: On-chart display of current market conditions Multiple Color Schemes: Modern, Classic, Monochrome, and Neon themes Classic Modern Monochrome Neon 📖 Usage Guidelines The indicator offers several customization options: Market Condition Settings: Preset Mode: Choose between Auto-detection or specific market condition presets Color Theme: Select visual theme matching your chart style Divergence Labels: Choose whether or not you’d like to see the divergence ✅ Best Use Cases: Identify potential market reversals through statistical divergences Detect changes in market structure before price confirmation Filter trades based on current market condition (trending vs. ranging) Find optimal entry and exit points using adaptive thresholds Monitor shifts in market participation and momentum ⚠️ Limitations Requires sufficient historical data for accurate statistical analysis Auto-detection may lag during rapid market condition changes Advanced statistical calculations have higher computational requirements Manual preset selection may be required in certain transitional markets 💡 What Makes This Unique Statistical Depth: Goes beyond traditional indicators with advanced statistical measures Adaptive Intelligence: Automatically adjusts to current market conditions Bayesian Analysis: Identifies statistically significant change points in market structure Multi-factor Approach: Combines multiple statistical dimensions for confirmation Fractal Divergence System: More robust than traditional divergence detection methods 🔬 How It Works The indicator processes market data through four main components: Market Condition Analysis: Evaluates trend strength, volatility, and price patterns Automatically selects optimal preset parameters Adapts sensitivity based on current conditions Statistical Oscillator: Combines multiple statistical measures with weights Normalizes values to consistent scale Applies adaptive smoothing Advanced Statistical Analysis: Calculates higher-order statistical moments Applies information-theoretic measures Detects distribution anomalies Divergence Detection: Uses fractal theory to identify pivot points Detects and scores divergence quality Filters signals based on current market phase 💡 Note: The Market Participation Index performs optimally when used across multiple timeframes for confirmation. Its statistical foundation makes it particularly valuable during market transitions and periods of changing volatility, where traditional indicators often fail to provide clear signals.

WillStop Pro [tradeviZion]WillStop Pro : A Step-by-Step Guide for Beginners to Master Trend Trading Welcome to an in-depth guide to the WillStop Pro indicator. This article will walk you through the key features, how to use them effectively, and how this tool can help you navigate the markets confidently. WillStop Pro is based on principles established by Larry Williams, a well-known figure in trading, and aims to help you manage trades more effectively without overcomplicating things. This guide will help you understand the basics of the WillStop Pro indicator, how to interpret its signals, and how to use it step-by-step to manage risk and identify opportunities in your trading journey. We will also cover the underlying logic and calculations for advanced users interested in more details. What is the WillStop Pro Indicator? The WillStop Pro indicator is a user-friendly tool that helps traders establish stop levels dynamically. It helps you figure out optimal points to enter or exit trades, while managing risk effectively during changing market conditions. The indicator tracks trending markets and sets price levels as stops for ongoing trades, making it suitable both for deciding when to enter and exit trades. The indicator is beginner-friendly because it simplifies complex calculations and presents the results visually. This allows traders to focus more on their decision-making process instead of spending time with complex analysis. WillStop Pro adapts to different market conditions, whether you're trading stocks, forex, commodities, or cryptocurrencies. It adjusts stop levels dynamically based on current market momentum, providing a practical way to manage both risk and reward. Another significant benefit of WillStop Pro is that it works well with other indicators. Beginners can use it on its own or combine it with other tools like moving averages or oscillators to form a comprehensive trading strategy. Whether you are trading daily or looking at longer-term trends, WillStop Pro helps you manage your trades effectively. Key Features of WillStop Pro Dynamic Stop Levels : WillStop Pro calculates real-time stop levels for both long (buy) and short (sell) positions. This helps you protect your profits and reduce risk. The stop levels adjust based on the current market environment, making them more adaptable compared to fixed stop levels. Advanced Stop Settings : There are optional settings to make the stop calculations more advanced, which take into consideration previous price movements to refine where the stops should be placed. These settings provide more precise control over your trades. Break Signals and Alerts : The indicator provides visual signals, like arrows, to show when a stop level has been broken. This makes it easier for you to identify possible reversals and understand when the market direction is changing. Comprehensive Table Display : A small table on the chart shows the current trend, the stop level, and whether advanced mode is active. This simple display provides an overview of the market, making decision-making easier. Based on Larry Williams' Methodology : WillStop Pro builds upon Larry Williams' ideas, which are designed to capture major market trends while managing risk effectively. It provides a systematic way to follow these strategies without requiring deep technical analysis skills. How Are Stop Levels Calculated? (For Advanced Users) The WillStop Pro indicator determines stop levels by evaluating highs, lows, and closing prices over a specific lookback period. It uses this information to identify key points that justify adjusting your stop level, and there are separate approaches for both long and short positions. Below, we explain the mathematical logic behind the stop calculations, along with some code snippets to give advanced users a clearer understanding. For Long Stops (buy positions): The indicator looks for the highest closing price within the lookback period and continues until it finds three valid bars that meet certain criteria. Stops are adjusted to skip bars that have consecutive upward closes to ensure that the stop is placed at a level that offers solid support. Specifically, the function iterates over recent bars to determine the highest closing value, and checks for specific conditions before finalizing the stop level. Here is an excerpt of the relevant code: getTrueLow(idx) => math.min(low , close ) findStopLevels() => float highestClose = close int highestCloseIndex = 0 for i = 0 to lookback if close > highestClose highestClose := close highestCloseIndex := i // Logic to adjust based on up close skipping int longCount = 0 int longCurrentIndex = highestCloseIndex while longCount < 3 and longCurrentIndex < 100 if not isInsideBar(longCurrentIndex) longCount += 1 longCurrentIndex += 1 // Determine the lowest low for the stop level float longStopLevel = high * 2 for i = searchIndex to highestCloseIndex longStopLevel := math.min(longStopLevel, getTrueLow(i)) // Apply offset longStopLevel := longStopLevel - (offsetTicks * tickSize) In this code snippet, the function findStopLevels() calculates the long stop level by first identifying the highest close within the lookback period and then finding a suitable support level while skipping certain conditions, such as inside bars or consecutive upward closes. Finally, the user-defined offset ( offsetTicks ) is applied to determine the stop level. For Short Stops (sell positions): Similarly, the indicator finds the lowest closing price within the lookback period and then identifies three bars that fit the conditions for a short stop. It avoids using bars with consecutive down closes to help find a more robust resistance level. Here's a relevant code snippet: getTrueHigh(idx) => math.max(high , close ) findStopLevels() => float lowestClose = close int lowestCloseIndex = 0 for i = 0 to lookback if close < lowestClose lowestClose := close lowestCloseIndex := i // Logic to adjust based on down close skipping int shortCount = 0 int shortCurrentIndex = lowestCloseIndex while shortCount < 3 and shortCurrentIndex < 100 if not isInsideBar(shortCurrentIndex) shortCount += 1 shortCurrentIndex += 1 // Determine the highest high for the stop level float shortStopLevel = 0 for i = searchIndex to lowestCloseIndex shortStopLevel := math.max(shortStopLevel, getTrueHigh(i)) // Apply offset shortStopLevel := shortStopLevel + (offsetTicks * tickSize) Here, findStopLevels() calculates the short stop level by finding the lowest closing price within the lookback period. It then determines the highest value that acts as a resistance level, excluding bars that do not fit certain criteria. Volume Confirmation for Alert Accuracy : To further enhance the stop level accuracy, volume is used as a confirmation filter. The average volume (volAvg) is calculated over a 20-period moving average, and alerts are only generated if the volume exceeds a defined threshold (volMultiplier). This ensures that price movements are significant enough to consider as meaningful signals. volAvg = ta.sma(volume, 20) isVolumeConfirmed() => result = requireVolumeConfirmation ? volume > (volAvg * volMultiplier) : true result This additional logic ensures that stop level breaks or adjustments are not triggered during periods of low trading activity, thus enhancing the reliability of the generated signals. These calculations are at the core of WillStop Pro's ability to determine dynamic stop levels that respond effectively to market movements, helping traders manage risk by placing stops at levels that make sense given historical price and volume data. How to Identify Opportunities with WillStop Pro WillStop Pro provides various signals that help you decide when to enter or exit a trade: When a Stop Level is Broken: If a stop level (support for long positions or resistance for short positions) is broken, it may indicate a reversal. WillStop Pro visually plots arrows whenever a stop level is breached, making it easy for you to see where changes might occur. This feature helps traders identify momentum shifts quickly. Support and Resistance Levels: The indicator plots support and resistance levels, which show key zones to watch for opportunities. These levels often act as psychological barriers in the market, where price action may either reverse or stall temporarily. Dynamic State Management: The indicator shifts between long and short states based on price action, providing real-time feedback. This helps traders stick to their trading plan without second-guessing the market. A major advantage of WillStop Pro is that it responds well to changing market conditions. By identifying when key support or resistance levels break, it allows you to adjust your strategies and react to new opportunities accordingly. Whether the market is trending strongly or staying within a range, WillStop Pro provides valuable information to help guide your trades. Setting Up Alerts Alerts are an important feature in trading, especially when you can’t be in front of your charts all the time. WillStop Pro has been enhanced to include flexible alert settings to help you stay on top of your trades without constantly monitoring the charts. Enable Alerts: There is a master switch to enable or disable all alerts. This way, you can control whether you want to be notified of events at any time. Alert Frequency: Choose between receiving alerts Once Per Bar or Once Per Bar Close . This helps you manage the frequency of alerts and decide if you need real-time updates or want confirmation after a bar closes. Break Alerts: These alerts notify you when a stop level has been broken. This can help you catch potential reversals or trading opportunities as soon as they happen. Strong Break Alerts: Alerts are available for strong breaks, which occur when the price breaks stop levels with confirmation based on additional price, volume, and momentum criteria. These alerts help identify significant shifts in the market. Level Change Alerts: These alerts tell you whenever a new stop level is calculated, keeping you updated about changes in market dynamics. You can set a Minimum Level Change % to ensure that alerts are only triggered when the stop level changes significantly. Require Volume Confirmation: You can opt to receive alerts only if the volume is above a certain threshold. This confirmation helps reduce false signals by ensuring that significant price changes are backed by increased trading activity. Volume Multiplier: The volume multiplier allows you to set a minimum volume requirement that must be met for an alert to trigger. This ensures that alerts are triggered only when there is sufficient trading interest. Here is a part of the updated alert logic that has been implemented in the indicator: // Alert on break conditions if alertsEnabled if alertOnBreaks if longStopBroken and isVolumeConfirmed() alert(createAlertMessage("Support Break - Short Signal", useAdvancedStops), alertFreq) if shortStopBroken and isVolumeConfirmed() alert(createAlertMessage("Resistance Break - Long Signal", useAdvancedStops), alertFreq) // Strong break alerts if alertOnStrongBreaks if longStopBroken and isStrongBreak(false) alert(createAlertMessage("Strong Support Break - Short Signal", useAdvancedStops), alertFreq) if shortStopBroken and isStrongBreak(true) alert(createAlertMessage("Strong Resistance Break - Long Signal", useAdvancedStops), alertFreq) // Level change alerts if alertOnLevelChanges and isSignificantChange() and isVolumeConfirmed() alert(createAlertMessage("Significant Level Change", useAdvancedStops), alertFreq) Setting alerts allows you to react to market changes without having to watch the charts constantly. Alerts are particularly helpful if you have other responsibilities and can’t be actively monitoring your trades all day. Understanding the Table Display The WillStop Pro indicator provides a status table that gives an overview of the current market state. Here’s what the table shows: Indicator Status: The table indicates whether the indicator is in a LONG or SHORT state. This helps you quickly understand the market trend. Stop Level: The active stop level is shown, whether it is acting as support (long) or resistance (short). This is important for knowing where to set your protective stops. Mode: The table also displays whether the advanced calculation mode is being used. This keeps you informed about how stop levels are being calculated and why they are positioned where they are. Empowering Messages: The table also includes motivational messages that rotate periodically, such as 'Trade with Clarity, Stop with Precision' and 'Let Winners Run, Cut Losses Short.' These messages are designed to keep you focused, motivated, and disciplined during your trading journey. The table is simple and easy to follow, helping you maintain discipline in your trading plan. By having all the essential information in one place, the table reduces the need to make quick, emotional decisions and promotes more thoughtful analysis. Tips for Using WillStop Pro Effectively Here are some practical ways to make the most of the WillStop Pro indicator: Start with Default Settings: If you’re new to the indicator, start with the default settings. This will give you an idea of how stop levels are determined and how they adjust to different markets. Experiment with Advanced Settings: Once you are comfortable, try using the advanced stop settings to see how they refine the stop levels. This can be useful in certain market conditions to improve accuracy. Use Alerts to Stay Updated: Set up alerts for when a stop level is broken or when new levels are calculated. This helps you take action without constantly watching the chart. Swing traders may find alerts especially helpful for monitoring longer-term moves. Monitor the Status Table: Keep an eye on the status table to understand the current market condition. Whether the indicator is in a LONG or SHORT state can help you make more informed decisions. Focus on Risk Management: WillStop Pro is designed to help you manage risk by dynamically adjusting stop levels. Make sure you are using these levels to protect your trades, especially during strong trends or volatile periods. Acknowledging Larry Williams' Influence WillStop Pro is inspired by the work of Larry Williams, who described the approach as one of his best trading techniques. His method aims to ride major market trends while reducing the risk of giving back gains during corrections. WillStop Pro builds upon this approach, adding features like advanced stop settings and visual alerts that make it easier to apply in modern markets. By using WillStop Pro, you are essentially leveraging a well-established trading strategy with additional tools that help improve its effectiveness. The indicator is designed to provide a reliable way to manage trades, stay on top of market conditions, and reduce emotional decision-making. Conclusion: Why WillStop Pro is Great for Beginners and Advanced Users The WillStop Pro is a powerful yet easy-to-use tool that helps traders ride trends while managing risk during market corrections. It can be used both for entering and exiting trades, and its visual features make it accessible for those who are new to trading, while the underlying logic appeals to advanced users seeking greater control and understanding. WillStop Pro is more than just a tool for setting stops. It is a comprehensive solution for managing trades, with features like dynamic stop levels, customizable alerts, and an easy-to-understand status table. This combination of simplicity and advanced features makes it suitable for beginners as well as more experienced traders. We hope this guide helps you get started with WillStop Pro and improves your trading confidence. Remember to start with the basics, explore the advanced features, and set alerts to stay informed without getting overwhelmed. Whether you’re just beginning or want to simplify your strategy, WillStop Pro is a valuable tool to have in your trading arsenal. Trading can be challenging, but the right tools make it more manageable. WillStop Pro helps you keep track of market movements, identify opportunities, and manage risk effectively. Give it a try and see how it can improve your trading decisions and help you navigate the markets more efficiently. By incorporating WillStop Pro into your strategy, you are following a systematic approach that has been refined over time. It’s designed to help you make sense of the markets, plan your trades, and manage your risks with greater clarity and confidence. Note: Always practice proper risk management and thoroughly test the indicator to ensure it aligns with your trading strategy. Past performance is not indicative of future results. Trade smarter with TradeVizion—unlock your trading potential today!

Approximate Spectral Entropy-Based Market Momentum (SEMM)Overview The Approximate Spectral Entropy-Based Market Momentum (SEMM) indicator combines the concepts of spectral entropy and traditional momentum to provide traders with insights into both the strength and the complexity of market movements. By measuring the randomness or predictability of price changes, SEMM helps traders understand whether the market is in a trending or consolidating state and how strong that trend or consolidation might be. Key Features Entropy Measurement: Calculates the approximate spectral entropy of price movements to quantify market randomness. Momentum Analysis: Integrates entropy with rate-of-change (ROC) to highlight periods of strong or weak momentum. Dynamic Market Insight: Provides a dual perspective on market behavior—both the trend strength and the underlying complexity. Customizable Parameters: Adjustable window length for entropy calculation, allowing for fine-tuning to suit different market conditions. Concepts Underlying the Calculations The indicator utilizes Shannon entropy, a concept from information theory, to approximate the spectral entropy of price returns. Spectral entropy traditionally involves a Fourier Transform to analyze the frequency components of a signal, but due to Pine Script limitations, this indicator uses a simplified approach. It calculates log returns over a rolling window, normalizes them, and then computes the Shannon entropy. This entropy value represents the level of disorder or complexity in the market, which is then multiplied by traditional momentum measures like the rate of change (ROC). How It Works Price Returns Calculation: The indicator first computes the log returns of price data over a specified window length. Entropy Calculation: These log returns are normalized and used to calculate the Shannon entropy, representing market complexity. Momentum Integration: The calculated entropy is then multiplied by the rate of change (ROC) of prices to generate the SEMM value. Signal Generation: High SEMM values indicate strong momentum with higher randomness, while low SEMM values indicate lower momentum with more predictable trends. How Traders Can Use It Trend Identification: Use SEMM to identify strong trends or potential trend reversals. Low entropy values can indicate a trending market, whereas high entropy suggests choppy or consolidating conditions. Market State Analysis: Combine SEMM with other indicators or chart patterns to confirm the market's state—whether it's trending, ranging, or transitioning between states. Risk Management: Consider high SEMM values as a signal to be cautious, as they suggest increased market unpredictability. Example Usage Instructions Add the Indicator: Apply the "Approximate Spectral Entropy-Based Market Momentum (SEMM)" indicator to your chart. Adjust Parameters: Modify the length parameter to suit your trading timeframe. Shorter lengths are more responsive, while longer lengths smooth out the signal. Analyze the Output: Observe the blue line for entropy and the red line for SEMM. Look for divergences or confirmations with price action to guide your trades. Combine with Other Tools: Use SEMM alongside moving averages, support/resistance levels, or other indicators to build a comprehensive trading strategy.

Discovery Index The Discovery Index is an original technical indicator which attempts to display directional market pressure and momentum based on accumulated candle-over-candle measurements. Discovery , in this context, is the act of finding (discovering) New Highs and Lows. > What is 'Discovery' Not to be confused with "Price Discovery", the term for setting the spot price of an asset. The term 'Discovery' in Discovery Index is used based on the literal definition of 'Discovery', such as, the action of finding what was previously unknown. Given this definition, Discovery is the difference between highs or lows only when the current high is higher than the previous high or the current low is lower than the previous low. Below is a visual example of exactly where Discovery is seen from each candle. Since discovery is only based on points of the candle, and not specifically the direction of the candle; it is possible for discovery to occur in both directions from the same candle. It is also possible for no discovery to occur from a candle. > Calculation The Discovery Index is the Net Total of discovery data over a specified length of bars. Discovery Index = Sum of Upwards Discovery + Sum of Downwards Discovery Note: Upwards Discovery is always Positive, and Downwards Discovery is always Negative. By adding both together, their Net Total is produced. This value is the "Discovery Index". Wick Calculation Example > Volume Discovery Using Volume for the Discovery Index Calculation allows for a different dimension to be added to the data for new analysis opportunities. While volume data is only a single value, by accumulating this data over time, we are able to fabricate a candle body from the data by accounting for the direction of the chart candles. This allows for the Calculation of the Discovery Index based on volume data. Volume Example > Display The display uses a "Candlestick histogram" display. The bodies and wicks from the display represent the discovery data from the respective points in each candle. (Wick Discovery & Candle Body Discovery). This style of histogram allows for the display of both data sources, preserving the accuracy and distinction between each type, while also providing a clean display. > Considerations Discovery index is not an Oscillator, since there are no upper or lower boundaries to its rotations. There are not (at this time) any "Over-bought" or "Over-sold" Areas, this is partially due to the previous consideration since any levels for these could potentially change from chart to chart. Additionally, it would generally be better to read the data based on the context of the current market. Non-directional movements effect the Discovery Index as well. Since Discovery does not occur from every bar, the Index reflects hesitations as well as movements in market direction. With the option to input a symbol, the Discovery Index Indicator is not constrained to one chart ticker for its calculation and could help to see shifts between different symbols, making it easier to compare different assets. With the separation of wicks and candle body data, a stronger move may be observed by its full-bodied movements, while a potentially more speculative move may be seen from large wick movements. Since wicks are often interpreted as either, Rejection for reversal OR as Testing for continuation, the interpretation for Wick Discovery generally varies based on context. Discovery Index ⇾ Divergences! Due to its calculation, price (and/or volume) data is displayed in such a way that makes it useful as a tool for identifying divergence opportunities. Remember, this indicator is lookback based. An immediate significant change from the data source (if not offset by a similar opposite change) will be represented for multiple bars after its occurrence. Due to this, data is likely to be skewed or biased from these occurrences for a period of time after. Throughout development, "Discovery" has been shortened to just "Disco", therefore, this indicator is also an attempt to bring Disco Back. Enjoy!