Uptrick: RSI Histogram
1. **Introduction to the RSI and Moving Averages**
2. **Detailed Breakdown of the Uptrick: RSI Histogram**
3. **Calculation and Formula**
4. **Visual Representation**
5. **Customization and User Settings**
6. **Trading Strategies and Applications**
7. **Risk Management**
8. **Case Studies and Examples**
9. **Comparison with Other Indicators**
10. **Advanced Usage and Tips**
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## 1. Introduction to the RSI and Moving Averages
### **1.1 Relative Strength Index (RSI)**
The Relative Strength Index (RSI) is a momentum oscillator developed by J. Welles Wilder and introduced in his 1978 book "New Concepts in Technical Trading Systems." It is widely used in technical analysis to measure the speed and change of price movements.
**Purpose of RSI:**
- **Identify Overbought/Oversold Conditions:** RSI values range from 0 to 100. Traditionally, values above 70 are considered overbought, while values below 30 are considered oversold. These thresholds help traders identify potential reversal points in the market.
- **Trend Strength Measurement:** RSI also indicates the strength of a trend. High RSI values suggest strong bullish momentum, while low values indicate bearish momentum.
**Calculation of RSI:**
1. **Calculate the Average Gain and Loss:** Over a specified period (e.g., 14 days), calculate the average gain and loss.
2. **Compute the Relative Strength (RS):** RS is the ratio of average gain to average loss.
3. **RSI Formula:** RSI = 100 - (100 / (1 + RS))
### **1.2 Moving Averages (MA)**
Moving Averages are used to smooth out price data and identify trends by filtering out short-term fluctuations. Two common types are:
**Simple Moving Average (SMA):** The average of prices over a specified number of periods.
**Exponential Moving Average (EMA):** A type of moving average that gives more weight to recent prices, making it more responsive to recent price changes.
**Smoothed Moving Average (SMA):** Used to reduce the impact of volatility and provide a clearer view of the underlying trend. The RMA, or Running Moving Average, used in the USH script is similar to an EMA but based on the average of RSI values.
## 2. Detailed Breakdown of the Uptrick: RSI Histogram
### **2.1 Indicator Overview**
The Uptrick: RSI Histogram (USH) is a technical analysis tool that combines the RSI with a moving average to create a histogram that reflects momentum and trend strength.
**Key Components:**
- **RSI Calculation:** Determines the relative strength of price movements.
- **Moving Average Application:** Smooths the RSI values to provide a clearer trend indication.
- **Histogram Plotting:** Visualizes the deviation of the smoothed RSI from a neutral level.
### **2.2 Indicator Purpose**
The primary purpose of the USH is to provide a clear visual representation of the market's momentum and trend strength. It helps traders identify:
- **Bullish and Bearish Trends:** By showing how far the smoothed RSI is from the neutral 50 level.
- **Potential Reversal Points:** By highlighting changes in momentum.
### **2.3 Indicator Design**
**RSI Moving Average (RSI MA):** The RSI MA is a smoothed version of the RSI, calculated using a running moving average. This smooths out short-term fluctuations and provides a clearer indication of the underlying trend.
**Histogram Calculation:**
- **Neutral Level:** The histogram is plotted relative to the neutral level of 50. This level represents a balanced market where neither bulls nor bears have dominance.
- **Histogram Values:** The histogram bars show the difference between the RSI MA and the neutral level. Positive values indicate bullish momentum, while negative values indicate bearish momentum.
## 3. Calculation and Formula
### **3.1 RSI Calculation**
The RSI calculation involves:
1. **Average Gain and Loss:** Calculated over the specified length (e.g., 14 periods).
2. **Relative Strength (RS):** RS = Average Gain / Average Loss.
3. **RSI Formula:** RSI = 100 - (100 / (1 + RS)).
### **3.2 Moving Average Calculation**
For the USH indicator, the RSI is smoothed using a running moving average (RMA). The RMA formula is similar to that of the EMA but is based on averaging RSI values over the specified length.
### **3.3 Histogram Calculation**
The histogram value is calculated as:
- **Histogram Value = RSI MA - 50**
**Plotting the Histogram:**
- **Positive Histogram Values:** Indicate that the RSI MA is above the neutral level, suggesting bullish momentum.
- **Negative Histogram Values:** Indicate that the RSI MA is below the neutral level, suggesting bearish momentum.
## 4. Visual Representation
### **4.1 Histogram Bars**
The histogram is plotted as bars on the chart:
- **Bullish Bars:** Colored green when the RSI MA is above 50.
- **Bearish Bars:** Colored red when the RSI MA is below 50.
### **4.2 Customization Options**
Traders can customize:
- **RSI Length:** Adjust the length of the RSI calculation to match their trading style.
- **Bull and Bear Colors:** Choose colors for histogram bars to enhance visual clarity.
### **4.3 Interpretation**
**Bullish Signal:** A histogram bar that moves from red to green indicates a potential shift to a bullish trend.
**Bearish Signal:** A histogram bar that moves from green to red indicates a potential shift to a bearish trend.
## 5. Customization and User Settings
### **5.1 Adjusting RSI Length**
The length parameter determines the number of periods over which the RSI is calculated and smoothed. Shorter lengths make the RSI more sensitive to price changes, while longer lengths provide a smoother view of trends.
### **5.2 Color Settings**
Traders can adjust:
- **Bull Color:** Color of histogram bars indicating bullish momentum.
- **Bear Color:** Color of histogram bars indicating bearish momentum.
**Customization Benefits:**
- **Visual Clarity:** Traders can choose colors that stand out against their chart’s background.
- **Personal Preference:** Adjust settings to match individual trading styles and preferences.
## 6. Trading Strategies and Applications
### **6.1 Trend Following**
**Identifying Entry Points:**
- **Bullish Entry:** When the histogram changes from red to green, it signals a potential entry point for long positions.
- **Bearish Entry:** When the histogram changes from green to red, it signals a potential entry point for short positions.
**Trend Confirmation:** The histogram helps confirm the strength of a trend. Strong, consistent green bars indicate robust bullish momentum, while strong, consistent red bars indicate robust bearish momentum.
### **6.2 Swing Trading**
**Momentum Analysis:**
- **Entry Signals:** Look for significant shifts in the histogram to time entries. A shift from bearish to bullish (red to green) indicates potential for upward movement.
- **Exit Signals:** A shift from bullish to bearish (green to red) suggests a potential weakening of the trend, signaling an exit or reversal point.
### **6.3 Range Trading**
**Market Conditions:**
- **Consolidation:** The histogram close to zero suggests a range-bound market. Traders can use this information to identify support and resistance levels.
- **Breakout Potential:** A significant move away from the neutral level may indicate a potential breakout from the range.
### **6.4 Risk Management**
**Stop-Loss Placement:**
- **Bullish Positions:** Place stop-loss orders below recent support levels when the histogram is green.
- **Bearish Positions:** Place stop-loss orders above recent resistance levels when the histogram is red.
**Position Sizing:** Adjust position sizes based on the strength of the histogram signals. Strong trends (indicated by larger histogram bars) may warrant larger positions, while weaker signals suggest smaller positions.
## 7. Risk Management
### **7.1 Importance of Risk Management**
Effective risk management is crucial for long-term trading success. It involves protecting capital, managing losses, and optimizing trade setups.
### **7.2 Using USH for Risk Management**
**Stop-Loss and Take-Profit Levels:**
- **Stop-Loss Orders:** Use the histogram to set stop-loss levels based on trend strength. For instance, place stops below support levels in bullish trends and above resistance levels in bearish trends.
- **Take-Profit Targets:** Adjust take-profit levels based on histogram changes. For example, lock in profits as the histogram starts to shift from green to red.
**Position Sizing:**
- **Trend Strength:** Scale position sizes based on the strength of histogram signals. Larger histogram bars indicate stronger trends, which may justify larger positions.
- **Volatility:** Consider market volatility and adjust position sizes to mitigate risk.
## 8. Case Studies and Examples
### **8.1 Example 1: Bullish Trend**
**Scenario:** A trader notices a transition from red to green histogram bars.
**Analysis:**
- **Entry Point:** The transition indicates a potential bullish trend. The trader decides to enter a long position.
- **Stop-Loss:** Set stop-loss below recent support levels.
- **Take-Profit:** Consider taking profits as the histogram moves back towards zero or turns red.
**Outcome:** The bullish trend continues, and the histogram remains green, providing a profitable trade setup.
### **8.2 Example 2: Bearish Trend**
**Scenario:** A trader observes a transition from green to red histogram bars.
**Analysis:**
- **Entry Point:** The transition suggests a potential
bearish trend. The trader decides to enter a short position.
- **Stop-Loss:** Set stop-loss above recent resistance levels.
- **Take-Profit:** Consider taking profits as the histogram approaches zero or shifts to green.
**Outcome:** The bearish trend continues, and the histogram remains red, resulting in a successful trade.
## 9. Comparison with Other Indicators
### **9.1 RSI vs. USH**
**RSI:** Measures momentum and identifies overbought/oversold conditions.
**USH:** Builds on RSI by incorporating a moving average and histogram to provide a clearer view of trend strength and momentum.
### **9.2 RSI vs. MACD**
**MACD (Moving Average Convergence Divergence):** A trend-following momentum indicator that uses moving averages to identify changes in trend direction.
**Comparison:**
- **USH:** Provides a smoothed RSI perspective and visual histogram for trend strength.
- **MACD:** Offers signals based on the convergence and divergence of moving averages.
### **9.3 RSI vs. Stochastic Oscillator**
**Stochastic Oscillator:** Measures the level of the closing price relative to the high-low range over a specified period.
**Comparison:**
- **USH:** Focuses on smoothed RSI values and histogram representation.
- **Stochastic Oscillator:** Provides overbought/oversold signals and potential reversals based on price levels.
## 10. Advanced Usage and Tips
### **10.1 Combining Indicators**
**Multi-Indicator Strategies:** Combine the USH with other technical indicators (e.g., Moving Averages, Bollinger Bands) for a comprehensive trading strategy.
**Confirmation Signals:** Use the USH to confirm signals from other indicators. For instance, a bullish histogram combined with a moving average crossover may provide a stronger buy signal.
### **10.2 Customization Tips**
**Adjust RSI Length:** Experiment with different RSI lengths to match various market conditions and trading styles.
**Color Preferences:** Choose histogram colors that enhance visibility and align with personal preferences.
### **10.3 Continuous Learning**
**Backtesting:** Regularly backtest the USH with historical data to refine strategies and improve accuracy.
**Education:** Stay updated with trading education and adapt strategies based on market changes and personal experiences.
Search in scripts for "entry"
Fibo Level DailyOverview
The "Fibo Level Daily" strategy is designed for trading Bitcoin (BTC) using the 1-hour timeframe. This strategy relies on Fibonacci levels calculated from the previous day's range and determines entry and exit points based on whether the previous daily candle was bullish or bearish.
How It Works
Fibonacci Levels Calculation:
The indicator calculates Fibonacci levels (0.8, 0.5, and 0.2) based on the high and low of the previous day.
The levels are calculated as follows:
0.8: This level is calculated by multiplying the difference between the previous day's high and low by 0.8 and adding the result to the previous day's low.
0.5: This is the midpoint of the previous day's range.
0.2: This level is calculated by multiplying the difference between the previous day's high and low by 0.2 and adding the result to the previous day's low.
Identifying the Previous Day's Trend:
The indicator checks if the previous daily candle closed bullish (close greater than open) or bearish (close less than open).
Setting Entry and Take Profit Levels:
If the previous daily candle was bearish:
Sell Entry: Wait for the price to rise to the 0.5 level (midpoint of the previous day's range) to enter a sell position.
Take Profit: The profit target is set at the 0.2 level.
If the previous daily candle was bullish:
Buy Entry: Wait for the price to drop to the 0.5 level (midpoint of the previous day's range) to enter a buy position.
Take Profit: The profit target is set at the 0.8 level.
Visual Representation on the Chart:
The indicator draws horizontal lines on the chart representing the Fibonacci levels (0.8, 0.5, and 0.2) from the previous day. These lines help visualize entry and exit points clearly.
Additionally, the last 15 minutes of the daily session are highlighted with a light red background to indicate the session's end.
Conditions of Use:
Timeframe: This indicator is specifically designed for use on the 1-hour timeframe.
Assets: While it can be used on any asset, it is optimized for trading Bitcoin (BTC).
Steps to Use the Indicator
Add the Indicator:
Insert the "Fibo Level Daily" indicator script into your trading platform (such as TradingView).
Select Timeframe:
Change the chart timeframe to 1 hour.
Interpret the Levels:
Observe the horizontal lines drawn on the chart representing the Fibonacci levels.
Identify whether the previous daily candle was bullish or bearish.
Wait for the Entry Price:
For a bearish previous daily candle: Wait for the price to rise to the 0.5 level to enter a sell position.
For a bullish previous daily candle: Wait for the price to drop to the 0.5 level to enter a buy position.
Set the Profit Target:
For a sell: Set your profit target at the 0.2 level.
For a buy: Set your profit target at the 0.8 level.
Execute the Trade:
Initiate the trade once the price reaches the entry level and set your take profit according to the identified trend from the previous day.
Conclusion
The "Fibo Level Daily" strategy provides a clear and precise methodology for identifying entry and exit points in Bitcoin using Fibonacci levels. By following this step-by-step guide, any trader can take advantage of market movements based on the previous day's price action, optimizing their trading opportunities on the 1-hour timeframe.
Prometheus Polarized Fractal Efficiency (PFE)This indicator uses market data to calculate Polarized Fractal Efficiency (PFE) on an asset, so traders can have a better idea of which direction it may go.
Users can control the lookback length for the fractal calculation, the lookback length for the Exponential Moving Average (EMA), and whether or not to display lines at the -50 and 50 level, or -25 and 25 level.
Polarized Fractal Efficiency:
The Polarized Fractal Efficiency (PFE) indicator is a value between -100 and 100 with 0 as a midpoint.
A PFE above 0 indicates the asset may trend higher, a PFE below 0 indicates the asset may trend lower.
There are many ways to trade with PFE, the intuitive trend riding as described above, or reversals.
Even when the PFE is above 0, if it gets high enough, it may also be an indication of a reversal. A PFE of 90 - 100, or -100 - -90, may indicate price is ready to revert the other direction. Furthermore, traders already in a position may look to breaks of other levels to be their take profit or stop out spot.
Calculation:
Pi = 100 x (Price - Price )2 + N2 / Summation, j= 0, to N-2 (Price - Price )2 + 1
If Close < Close Pi = -Pi
PFEi = EMA(Pi, M)
Where:
N = period of indicator
M = smoothing period
Citation: www.investopedia.com
Scenarios:
Inputs are (9, 5) and every display option is on.
Trend example
Step 1: A short trade appears as PFE crosses below -25. We reach a safe take profit as PFE crosses below -50. Traders can use these levels to exit as well as enter.
Step 2: On the cross above 25 there is a safe long. As the PFE value breaks 0 a safe, early take profit could be appropriate for this trade. No guarantee we would see 50.
Step 3: Long scenario at break of 25, straight to 50. Simple, straightforward setup.
Step 4: This long results in a stop loss. Once again entry as PFE crosses 25, but as we cross the 0 line it is for a loss.
Step 5: The last trade in this example is reminiscent of step 3. This is a short trade entry at break of 25 and exit at break of 50.
Traders have liberty to use the PFE value to determine spots to enter and exit trades, long or short. 25 and 50 were chosen arbitrarily, values like 10 and 60 may work as well, we encourage traders to use their own discretion along with tools.
Reversal example
Step 1: PFE is around -100, crossing below it at one point! Strong zone for a potential reversal.
Step 2: PFE crosses above 25 adding conviction.
Step 3: Option to exit at 70.
Step 4: Option to exit at 90.
There is no “one size fits all method”, this approach may be more intuitive for some users and is just as feasible as the first.
Longer trend example
Step 1: Using -50 and 50 this time instead of -25 and 25 to be safer on our entries we see a short here. Was a good entry and as the value gets closer to -70 we can safely close.
Step 2: On this candle we see a long for the break of 50. On the next candle we break the 0 line, but because of our safe entry at 50, we could hold this and only stop out at a break of -25. We get close but stay in it and close at 70.
Step 3: Break of 50 for a long once again. This time the break of 0 line occurs as we are in profit, not letting a green trade go red is a golden rule of trading, so an early exit here.
Step 4: Same at step 2, break of 50 to long and stay in it, not stopping out at break of 0 line. The PFE value eventually reaches 70 and there is a good exit.
Quicker Reversal example
Step 1: Notice a close with PFE below -90, enter long for the reversal. Then close for profit when the PFE crosses above 70.
Step 2: When the PFE breaks above 90 we have a short entry. Like the long closing it when it crosses below -70.
Step 3: This step is the same setup as step 2. As PFE breaks above 90 we have a short entry. Closing it when it crosses below -70.
Recap:
Described above are 4 different examples with many different trades. Both trend and reversal trades. The PFE value is an indicator that can be used by traders in many different ways and Prometheus encourages traders to use their own discretion along with tools and not follow indicators blindly.
Options:
Users can control the input for the lookback of the indicator. The default is 9.
The smoothing factor for the EMA is also changeable, default is 5.
Users have options to display lines at -50, -25, 25, and 50.
Tripart Super Forex IndicatorOverview
The “Tripart Super Forex Indicator” is an advanced trading tool designed specifically for intraday trading and scalping. It combines the power of Exponential Moving Averages (EMAs), Average True Range (ATR), and the Relative Strength Index (RSI) to generate precise buy and sell signals. This indicator helps traders identify trend direction, volatility, and momentum, ensuring well-timed entry and exit points in the forex market.
What It Does
The Tripart Super Forex Indicator provides traders with the following:
1. Entry Signals: Buy and sell signals are generated based on the crossover of short-
term and long-term EMAs combined with ATR-based volatility filtering.
2. Exit Signals: Exit signals are generated using RSI to identify overbought and oversold
conditions, ensuring timely exits to lock in profits.
3. Trailing Stop-Loss: Dynamic trailing stop-loss levels are calculated using ATR to
manage risk effectively during trades.
How It Works
1. Exponential Moving Averages (EMAs):
• Short-term EMA: Represents recent price trends, reacting quickly to price changes.
• Long-term EMA: Represents longer price trends, providing a smoother view of the
market direction.
• Buy Signal: Generated when the short-term EMA crosses above the long-term EMA,
and the closing price is above the long-term EMA plus a multiple of the ATR.
• Sell Signal: Generated when the short-term EMA crosses below the long-term EMA,
and the closing price is below the long-term EMA minus a multiple of the ATR.
2. Average True Range (ATR):
• Measures market volatility.
• Used to filter out signals during low volatility periods, ensuring trades are only taken
during significant price movements.
• ATR is also used to calculate dynamic trailing stop-loss levels to protect gains and
manage risk.
3. Relative Strength Index (RSI):
• Measures the speed and change of price movements.
• Exit Buy Signal: Triggered when RSI falls below the overbought level minus a defined
threshold, indicating potential for price reversal.
• Exit Sell Signal: Triggered when RSI rises above the oversold level plus a defined
threshold, indicating potential for price reversal.
• Helps ensure exits are timely and consistent with momentum changes.
How to Use It
1. Adding the Indicator :
• Add the “Tripart Super Forex Indicator” to your chart from the TradingView library.
• The indicator will overlay buy and sell signals on the price chart and plot EMAs if
enabled.
2. Configuring Settings :
• Customize the EMA lengths, ATR length, ATR multiplier, RSI length, RSI overbought
and oversold levels, and RSI exit threshold to suit your trading strategy.
• Optionally enable or disable the display of EMAs and ATR on the chart for a cleaner
view.
3. Interpreting Signals :
• Buy Signal: Look for green “Buy” labels below the candlesticks indicating a potential
long entry.
• Sell Signal: Look for red “Sell” labels above the candlesticks indicating a potential
short entry.
• Exit Buy Signal: Look for yellow “Exit Buy” labels below the candlesticks indicating a
recommended exit from long positions.
• Exit Sell Signal: Look for orange “Exit Sell” labels above the candlesticks indicating a
recommended exit from short positions.
4. Risk Management :
• Use the dynamic trailing stop-loss levels plotted on the chart to manage open trades
and protect profits.
• Adjust the trailing stop multiplier based on your risk tolerance and market conditions.
Concepts Underlying Calculations
• Trend Detection: Utilizes the crossover of short-term and long-term EMAs to identify
trend direction and potential entry points.
• Volatility Filtering: Incorporates ATR to filter signals during low volatility periods,
ensuring trades are taken during significant price movements.
• Momentum-Based Exits: Uses RSI to detect overbought and oversold conditions for
timely exits, preventing premature or delayed exits.
By integrating these concepts, the Tripart Super Forex Indicator provides a comprehensive and robust tool for intraday trading and scalping, helping traders make informed decisions and improve their trading performance.
Feel free to reach out for further support or clarification on using the Tripart Super Forex Indicator. Happy trading!
FSTO + MACD Combined OscillatorFSTO + MACD Combined Oscillator with Advanced Alerts
Introduction
The FSTO + MACD Combined Oscillator is a powerful technical analysis tool that synergizes two proven momentum indicators to deliver high-confidence trading signals. By combining the Moving Average Convergence Divergence (MACD) with the Fast Slow Trend Oscillator (FSTO), this indicator provides unique insights into market momentum, trend direction, and potential reversal points.
Key Features
1. Dual Indicator Integration
MACD Component:
Fast EMA (user-configurable period)
Slow EMA (user-configurable period)
Signal line with customizable smoothing
Histogram showing momentum strength
FSTO Component:
Short-term EMA (price-based)
Long-term EMA (price-based)
Signal line with adjustable period
Zero-line crossover detection
2. Advanced Alert System
Four specialized alert conditions that trigger only when both indicators confirm momentum shifts:
Bullish Reversal Alert
FSTO crosses above zero + MACD transitions from falling to rising
Strong trend reversal signal
Bullish Momentum Alert
FSTO crosses above signal line + MACD transitions from falling to rising
Confirmation of bullish momentum
Bearish Reversal Alert
FSTO crosses below zero + MACD transitions from rising to falling
Strong trend reversal signal
Bearish Momentum Alert
FSTO crosses below signal line + MACD transitions from rising to falling
Confirmation of bearish momentum
3. Visual Indicators
Color-coded plots:
MACD line (blue)
MACD signal line (orange)
FSTO line (purple)
FSTO signal line (amber)
Histogram:
Green: Strengthening bullish momentum
Light green: Weakening bullish momentum
Red: Strengthening bearish momentum
Light red: Weakening bearish momentum
Alert markers:
Numbered labels (1-4) at chart extremes
Color-coded for quick identification
4. Information Panel
Real-time display of:
Current MACD and FSTO values
Trend direction (bullish/bearish)
Momentum status (rising/falling)
Active alerts with color coding
How It Works
The indicator calculates two parallel momentum measurements:
MACD = EMA(close, fast_length) - EMA(close, slow_length)
FSTO = EMA(close, short_period) - EMA(close, long_period)
The true power emerges when these indicators confirm each other's signals:
MACD detects momentum shifts in price derivatives
FSTO identifies trend changes in price itself
Combined signals filter out false positives
Trading Applications
1. Trend Identification
Bullish Trend: FSTO > 0 and MACD > signal line
Bearish Trend: FSTO < 0 and MACD < signal line
2. High-Probability Entries
Long Entry: Alert 1 or 2 triggers
Short Entry: Alert 3 or 4 triggers
3. Exit Signals
MACD histogram color change (green to light green)
FSTO crossing signal line against trend direction
4. Risk Management
Stop placement below recent swing low (bullish)
Stop placement above recent swing high (bearish)
Position sizing based on histogram strength
Recommended Settings
Market MACD Fast MACD Slow FSTO Short FSTO Long
Stocks 12 26 12 26
Cryptocurrency 10 20 10 20
Forex 8 17 8 17
Commodities 14 28 14 28
Benefits
Synergistic Signals: Combines price-based and derivative-based momentum
Reduced False Signals: Requires confirmation from both indicators
Customizable Alerts: Enable/disable specific alert types
Visual Clarity: Color-coded elements for quick interpretation
Multi-Timeframe: Works on all timeframes from 1-minute to monthly
How to Use
Add indicator to TradingView chart
Configure periods based on market and timeframe
Enable desired alerts in settings
Set up notifications through TradingView alert system
Combine with price action analysis for best results
The MACD + FSTO Combined Oscillator provides professional traders with a sophisticated yet intuitive tool for identifying high-probability trade setups across all financial markets. Its unique alert system ensures you never miss critical momentum shifts confirmed by dual-indicator analysis.
VWAP Suite, Session Cloud RevOverview
The VWAP Suite with Standard Deviation Strategy is a comprehensive indicator designed to help traders make informed trading decisions based on the Volume Weighted Average Price (VWAP) and its associated standard deviation bands. This indicator provides multiple VWAP calculations for different timeframes (Session, Day, Week, Month) and incorporates standard deviation bands to identify potential trade entry and exit points.
Components
VWAP Calculation:
Session VWAP: VWAP calculated based on the current trading session.
Day VWAP: VWAP calculated for the daily timeframe.
Week VWAP: VWAP calculated for the weekly timeframe.
Month VWAP: VWAP calculated for the monthly timeframe.
Standard Deviation Bands:
The indicator includes three standard deviation bands (StDev 1, StDev 2, and StDev 3) around the VWAP. These bands help identify the dispersion of price from the VWAP, providing insight into potential overbought or oversold conditions.
Additional VWAP Lines:
VWAP 2: An additional VWAP line with a customizable timeframe (Day, Week, Month).
VWAP 3: Another VWAP line for further analysis with a customizable timeframe (Day, Week, Month).
Strategy Description
The primary strategy implemented in this indicator revolves around the second standard deviation band (StDev 2). The key aspects of this strategy include:
Entry Points:
Long Entry: Consider entering a long position when the price moves below the lower StDev 2 band and then starts to revert back towards the VWAP. This indicates a potential oversold condition.
Short Entry: Consider entering a short position when the price moves above the upper StDev 2 band and then starts to revert back towards the VWAP. This indicates a potential overbought condition.
Exit Points:
Long Exit: Exit the long position when the price moves back up to the VWAP or the upper StDev 1 band, indicating a normalization of the price.
Short Exit: Exit the short position when the price moves back down to the VWAP or the lower StDev 1 band, indicating a normalization of the price.
Risk Management:
Set stop-loss levels slightly beyond the StDev 3 bands to protect against significant adverse price movements.
Use trailing stops to lock in profits as the price moves favorably.
Customization
The VWAP Suite allows for extensive customization, enabling traders to adjust the following settings:
VWAP Mode: Select the timeframe for the primary VWAP calculation (Session, Day, Week, Month).
Line Widths and Colors: Customize the line widths and colors for VWAP and standard deviation bands.
Fill Opacity: Adjust the opacity of the fill between standard deviation bands for better visual clarity.
Additional VWAPs: Enable and customize additional VWAP lines (VWAP 2 and VWAP 3) for further analysis.
Three Candle Rolling Pivot Range**Strategy Description: Three Previous Candle Rolling Pivot Range**
**Introduction:**
This trading strategy is based on the concept of the rolling pivot range calculated from the high, low, and close prices of the three previous candles. The rolling pivot range serves as a dynamic support and resistance level, and this strategy aims to capture potential trading opportunities based on the price relationship with this range.
**Strategy Components:**
**1. Rolling Pivot Range Calculation:**
- **Rolling Pivot:** Calculate the rolling pivot by averaging the high, low, and close prices of the three previous candles.
- **Second Number:** Find the midpoint between the high and low of the three previous candles.
- **Pivot Differential:** Measure the difference between the rolling pivot and the second number.
- **Rolling Pivot Range High:** Set as rolling pivot + pivot differential.
- **Rolling Pivot Range Low:** Set as rolling pivot - pivot differential.
**2. Entry Rules:**
- **Long Entry:**
- Initiate a long entry when the current close is above both the rolling pivot range high and the rolling pivot.
- Continue the long entry as long as both the rolling pivot range high and low are higher than the corresponding values of the previous candle.
- **Short Entry:**
- Start a short entry when the current close is below both the rolling pivot range high and the rolling pivot.
- Continue the short entry as long as both the rolling pivot range high and low are lower than the corresponding values of the previous candle.
**Visualization:**
- **Plotting:**
- The rolling pivot range high, rolling pivot, and rolling pivot range low are plotted on the chart for visual reference.
- Long entry points are marked with a green triangle below the corresponding candle.
- Short entry points are marked with a red triangle above the corresponding candle.
**Conclusion:**
This strategy leverages the rolling pivot range to identify potential reversal points in the market. By considering the relative position of the current price compared to the dynamic support and resistance levels, the strategy aims to capture favorable trading opportunities. However, like all trading strategies, it should be used cautiously and backtested thoroughly on historical data to ensure its effectiveness before implementation in a live trading environment. Additionally, risk management techniques should always be applied to safeguard trading capital.
NoanFam IndicatorNoan Indicator: A Simple Manual for Beginners
Welcome to the Noan Indicator manual!
This guide will help you understand how to use the Noan Indicator for your trading needs, even if you have little to no knowledge of trading.
The Noan Indicator is a versatile tool that can be applied to different trading strategies, such as 123 patterns, trend breaks, or sudden large price movements.
How to Start the Indicator:
1. Determine 2% risk:
The first step is to determine the risk you're willing to take for a particular trade.
We recommend a 2% risk, meaning you should not risk more than 2% of your account balance on any single trade.
a. Enter Portfolio Size: Enter the total value of your trading portfolio. This value will be used to calculate the trade size based on the percentage risk you're willing to take.
b. Enter Leverage Multiplier: Enter the leverage multiplier you are using for your trades. This value will be used to adjust the trade size accordingly.
c. Split amount to trade (Entry-DCA): Select the desired percentage split for your initial trade entry and dollar-cost averaging (DCA) trade. You can choose between 60/40, 50/50, or 100% (no DCA).
2. Identify a trade opportunity:
Analyze the market, using technical and/or fundamental analysis, to identify potential trade opportunities. Look for patterns, trends, support and resistance levels, and other indicators that signal the right time to enter a trade. Remember that the Noan Indicator is designed to assist you in managing risk, and it is not a standalone trading strategy. Always use your own research and judgement when making trading decisions.
After conducting your research and finding a good point to enter, input the trade type (long or short) into the indicator.
3. Set entry price:
The entry price should be based on your analysis and represents the price at which you would like to enter the market.
It is essential to set a realistic entry price, taking into consideration the current market conditions and price action.
After conducting your own research and identifying a good entry point for a long or short trade, input the Entry Price into the Noan Indicator.
4. Preferences:
The Noan indicator is set default with a Dollar Cost Averaging (DCA) area.
You can choose to disable this feature if desired.
Also an option to choose whether you want to see the values ($) or percentages (%) for the different levels in the indicator.
5. Select a predefined Trail Stop Loss:
If a trailing stop loss option is selected in the settings, a line will be displayed on the chart, showing the level where the stop loss will be moved based on the chosen option.
Protect your investment and help manage risk during the trade.
It allows you to limit your losses while allowing your profits to run.
Move Stop Loss to Average Entry: The stop loss moves to your average entry price (considering DCA) once the market reaches a specific level.
Move Stop Loss to Entry: The stop loss moves to your initial entry price.
Move Stop Loss to TP1 after DCA: The stop loss moves to the first Take Profit level after executing the DCA.
Move Stop Loss to TP1, TP2, TP3, or LTPR: The stop loss moves to the specified Take Profit level or Last Trailing Profit Range.
6. Set alerts:
Set up alerts for when the indicator reaches specific levels or when other conditions are met.
This will help you stay informed about potential trading opportunities.
To set up alerts using the Noan Indicator v2.7.0:
a. Right-click on the chart and select "Add Alert" or click the "Alerts" tab in the left sidebar and click the "+" button.
b. In the "Condition" dropdown menu, select the "Noan Indicator v2.7.0" script.
c. Choose the alert type by selecting a condition from the available options (e.g., crossing, greater than, less than, etc.).
d. Specify the alert settings, such as the alert name, message, and frequency.
e. Click "Create" to create the alert.
What Makes This Indicator Unique?
The Noan Indicator is designed to suit various trading strategies and can help confirm a setup after thorough research or upon reaching a Point of Interest (POI). By inputting a pre-examined entry price, the indicator will display different potential levels for Take Profits (TPs), Dollar-Cost Averaging (DCA), and Stop Loss (SL) areas. These levels are based on fixed percentages derived from data collected from thousands of trades.
If the different levels correspond well with past price levels, this can provide an extra point of confirmation for your trading decision. The TPs, DCA, and SL areas at these levels are structured according to the Noan Theory, further enhancing the effectiveness of the indicator.
In summary, the Noan Indicator is a versatile and powerful tool that can help traders of all levels make more informed decisions, regardless of their trading strategy. By following this simple manual, you can start using the Noan Indicator to improve your trading performance.
Time-Traveling SMATitle: Time-Traveling SMA - A Unique Technical Indicator for Trend Trading
Introduction:
The Time-Traveling MA (TTSMA) is a playful and inventive technical indicator that combines a simple moving average (SMA) with a forward-shifted line, providing a futuristic perspective on trend direction. By enabling the "Singularity" option, traders can visualize the changing colors of the TTSMA line, representing an upward or downward trend. Although primarily conceptual, the TTSMA can be used as a fun addition to any trading strategy focused on trend-following.
Description:
The TTSMA indicator takes a standard simple moving average (SMA) and shifts it forward in time by a user-defined number of bars. The main idea behind the TTSMA is to provide an estimate of future trend direction, based on current market data. When the "Singularity" option is enabled, the TTSMA line changes color according to the moving average's direction, turning green for upward trends and red for downward trends.
TTSMA-Based Trading Strategy:
A simple trading strategy using the Time-Traveling Moving Average (TTSMA) can be devised as follows:
Define the parameters: Select the preferred length of the SMA (e.g., 14 periods) and the forward shift (e.g., 5 bars). Enable the "Singularity" option for a more visually appealing experience.
Entry Signals:
a. Long Entry: When the TTSMA line turns from red to green, it suggests a potential upward trend. Enter a long position at the close of the signal bar.
b. Short Entry: When the TTSMA line turns from green to red, it indicates a possible downward trend. Enter a short position at the close of the signal bar.
Exit Signals:
a. Long Exit: Close the long position when the TTSMA line turns from green to red.
b. Short Exit: Close the short position when the TTSMA line turns from red to green.
Risk Management: To minimize risk, set a stop-loss at a predefined level below the entry price for long positions and above the entry price for short positions. Adjust the stop-loss to a trailing stop once the trade moves in your favor.
Conclusion:
The Time-Traveling Moving Average (TTSMA) is a playful and experimental indicator that provides a unique approach to trend trading. While not intended for serious trading applications, the TTSMA can be a fun addition to any technical analysis toolbox, offering a creative way to visualize trend direction. Remember to always test any new trading strategy or indicator on a demo account before using it on a live trading account to ensure its effectiveness and suitability to your trading style.
Diddly - Real Volume TrendDiddly Real Volume Trend is an indicator to help traders identify the real trending direction of an asset, it achieves this by using liquidity to assess the overall buying and selling volume sentiment of a market place.
What is Liquidity
Liquidity refers to the ability of an asset to be turned into cash. Cash is the more liquid form of any asset, whereas selling a house would take a little longer to liquidate and convert to cash. Liquidity in financial markets is in essence based on the same principle and refers to how easily an asset can be bought and sold.
Liquidity in simple terms is the volume of participants who are willing to be involved in the market at any given time. Markets are based on auction theory, the more participants who want to buy at a certain price than sell, will dictate that the price goes up. As a result it is important to understand the role that volume has in financial markets, as volume will directly correlate to liquidity and supply and demand.
What does it mean?
Although markets are based on auction theory, sadly we don't have the advantage of a traditional auction, where we are all sitting in a room putting our hands in the air when we are interested in paying x price for a particular item. In this environment it is very clear to see how popular the item for sale is and whether it is possible to pick up a bargain.
Being able to identify the prevailing direction of buying versus selling volume on a chart provides an insight into market sentiment. Also we have to consider that typically most retail traders participate in very liquid markets, where you can get in and out of a position with relative ease.
There are obviously exceptions, extremely low float stocks, but on the whole with liquid assets it takes some big orders to move price, especially with currencies and high float stocks. Understanding these principles helps us as retail traders identify where the big money is seeing a bargain, if buying or overpriced if selling.
However you identify liquidity, I hope you agree that it is an extremely important element to be considering before taking a trade. The last thing any trader wants to be doing if they can avoid it, is getting on the wrong side of the market.
Just as a side note, high and low "Float Stocks" refers to the number of shares in general circulation for buying and selling.
What is "Diddly Real Volume Trend"
This volume trend indicator in simple terms will display the combined accumulated bullish and bearish volume within a window below the main chart. What you will see is a line chart that will be doing one of three things. Either it could be stair stepping in an upwards direction, identifying that we are in a bullish trend or stepping down in a bearish trend. Alternatively it could just be going sideways, which would suggest a ranging market.
This enables traders to make an assessment of the market sentiment using the liquidity direction that it has identified. This can help form an overall daily bias for intra-day traders or help confirm a longer term trend for swing traders.
Although this indicator is not a true oscillator (where the limits of number are fixed between a known upper and lower limit) , it can still be extremely useful in identifying divergence in price and the volume sentiment. As well as assisting in the process of identifying and confirming peak formations and potential reversal points in a market.
How does it Work
The indicator is plotting the volume trend line based on the output of a set of volume calculations, which is confirmed on the close of each candle. The resultant output is either a positive (Bullish sentiment) or negative (Bearish Sentiment), which are all totalled up to show the next point on the graph. As a result the visual effect seen from this process is that the more bullish calculated volume identified than bearish, you will see a rising trend line and the reverse for a bearish market.
The algo calculation which is used on each candle and its related volume is using the following elements.
Volume
Rate of Change
Relative Strength
The indicator is not just looking at the volume total and saying this is a green candle and must provide a positive number. It is looking for the volume and liquidity extremes and filtering out the nothingness of a market that makes no difference to price either way. It is from using these extremes that the indicator is able to plot the activities and direction of the big money in the market.
What is the Indicator Showing me?
Examples:
Here on a stock VKTX, on a 1 minute chart the elements that make up the indicator are annotated on the chart.
There are 6 components highlighted in the above chart, these have been listed below.
Volume Trend Line
This is the indicator driving line and is the result of the calculations described in the previous section.
Fast Moving Average
This is the fast moving average of the "Volume Trend Line". The moving average type and length can be changed in the settings.
(Default = Exponential Moving Average, Length: 60)
Slow Moving Average
This is a slower moving average of the "Volume Trend Line". The moving average type and length can be changed in the settings.
(Default = Hull Moving Average, Length: 3500)
Long Term Moving Average
This is a long term moving average of the "Volume Trend Line". The moving average type and length can be changed in the settings.
(Default = Exponential Moving Average, Length: 400)
Bullish Confirmation
On the "Volume Trend Line", you will see coloured circles dotted along the line, the green circles signifying Bullish Confirmation.
Bearish Confirmation
On the "Volume Trend Line", you will see coloured circles dotted along the line, the red circles signifying Bearish Confirmation.
The Bullish and Bearish confirmation signals are not signals to take trades, they are there to highlight the predominant direction. Seeing one confirmation signal in isolation is not that helpful, but continued prints of confirmation in a single direction would be interesting.
There are a further two signal types that are displayed on the volume trend line, these should be seen infrequently across charts and represent potential extremes of price movement in a single direction. These signals act as a warning that price could stall in this area or potentially make a reversal. As with the other signals within this indicator they are not signals to buy or sell, they are there to provide warning alerts and should be considered with other pieces of information that you are working with.
Bullish Extreme
Plotted on the "Volume Trend Line", you will occasionally see a green coloured downwardly pointing triangle, this represents a Bullish Extreme.
GBPAUD Hourly chart October 2022
Bearish Extreme
Plotted on the "Volume Trend Line", you will occasionally see a red coloured upward pointing triangle, this represents a Bearish Extreme.
GBPAUD Daily chart (February - April) 2023
How Does It Help?
This indicator will compliment any existing strategy and is not intended to be used standalone.
It can be used on any chart from a monthly, one minute to one second, depending on your trading strategy. Using multiple time frame analysis can help traders with a number of decisions that need to be considered before taking entries.
What is my market direction bias?
This can be taken from an hourly for intraday trader or daily for swing traders. What that time frame is depends on your trading plan and objectives from the trades you take.
When do I take my trades?
Again depending on the trading strategy used will dictate many aspect of this decision, although using the volume trend on a lower time frame, can help confirm breakouts, reversals and divergence.
How should I manage my trade?
With any trade you should have a defined risk reward clearly defined, with stops and targets in mind before taking an entry.
The age old saying of "cut your losses quickly and let your winner run", is easier said than mastered. Once in a trade the volume trend can be really helpful to identify trades that could be real runners and allows you to change expectations after entering the trade. Maybe you want to take some profit at the original point and let the remaining run. Maybe there is such strength you want to add to the position. Being able to assess market sentiment once in a trade can help with optimising returns.
The "Volume Trend Line", which is the driving element of this indicator, will be doing one of three things. Either it could be stair stepping in an upwards direction, identifying that we are in a bullish trend, stepping down in a bearish trend or going sideways in a ranging market.
Bullish Volume Trending Market
Here is stock VKTX, on a 1 minute chart. Trend confirmation on price action is determined by Higher Highs and Higher Lows for an uptrend or Lower Lows and Lower Highs on a downtrend. The same principle applies for the volume trend line.
In this example we first see breakout volume on the indicator with the Bullish Break volume, following that the volume trend keeps making higher highs and higher lows, confirming that this asset has short-term upwards potential. (why short-term? this is the 1 minute chart, you would want to consult the daily or hourly for a longer term perspective).
Price also is making higher highs and higher lows, which is in alignment with the indicator and known as "convergence" and is a positive signal for a continued trend.
Bearish Market
So here on Tesla (TSLA) on the 4 hour chart we can see the big sell off that started in April 2022. Where it clearly shows a downward trend, with lots of confirmation for continuation.
Ranging Markets
On this example on the AUDJPY 1 Hour chart, we can see that price is in a ranging market. By drawing trend lines on price and the indicator, it is clear to see that price and the volume trend line are both showing a ranging market. What is more interesting is the structure of the ranges.
The price range at the top of the chart is in an upward direction, whereas the volume trend in the bottom window is showing a downward range. Giving us an early indication of what to expect from this asset.
Diverging Markets
"Divergence" is a very powerful mechanism for identifying potential reversal points in price actions. There is a wealth of published information on this topic which is well worth reviewing, if this is a new principle to you.
Here again on the same AUDJPY 1 Hour chart example, points of interest have been annotated on the chart where the historical range turns into a step down to the next level within the market cycle, as predicted by the divergence in range patterns, price point up and volume pointing down.
In the above example, after identifying the divergence the next most important element is an extremely fast accelerated move down which breaks the lower level of the range, this can be seen on the right side of the bottom window and is labelled "Bearish Breaking Volume".
What is interesting here is that the volume indicator has identified the range breakout when price was still above the lower level of the range. Following that break out volume signal, if we zoom out to a 4 hour chart to see what happened next.
The range breakout was confirmed and price and the volume trend continues to show a downward direction in the market. As for entries and stops that is not the intention of this indicator and will be down to other elements in your trading strategy or in our case other indicators.
Peak Formations
Peak formation refers to the point where an asset is over extended in one direction and there is a potential of change in direction, with a wider pullback or a reversal in the higher time frame trend. These formations are often seen with double bottoms (W patterns) or double tops (M patterns) . Unfortunately these patterns appear all over the chart and trading them in isolation will be challenging.
In this example of EURJPY on the 1 hour chart, we see price and the indicator in the bottom window for the first 3 weeks in March 2022. The pair is trending down which is confirmed by both price and the indicator. There are no signals points plotted on the volume trend line, until one appears on March 4th 2022.
Another one appeared on the next trading day of Monday the 7th and we now have these two signals relatively close to each other. This is interesting information, especially considering that there was no extreme signals for the previous couple of months.
Later that day the volume trend broke the previous volume level, after a W pattern was completed and a green bullish confirmation signal was printed. The following day another bullish confirmation signal is displayed to further confirm that we had made a peak formation reversal.
Please note that using the settings style tab, has enabled the change to the bearish extremes signal, changing the colour and shape to be an orange circle. Which for the purposes of this illustration is easier to see.
Another example of the same pair in August 2022, with a very similar confirmation sequence.
Stock Examples
Here on UBER on a 1 hour chart , is an example of how the indicator can be used in confluence with other trading strategies. If a trader was trading candle patterns, they may see this classic 1 hour bull flag pattern forming.
Without the volume trend analysis this looks like a good buy setup. Adding this analysis to the chart we clearly have a different view point.
Here is what subsequently happened to price and this is in a generally bullish market March 2023.
Scalping Entries
For those traders who work with super fast time frames like the 5 second or even on a 1 second charts, the volume indicator can be used to help time entries as a part of a wider trading strategy of trading a pullback or trading support and resistance levels.
Styling options in the indicator settings enabled this different view of the indicator output, which can be extremely useful for timing entries.
Here on this hot IPO stock, LUNR from February 16th 2023, we have an extremely strong move up from $13.80 to $18.00. One aspect of this move up, is that it is doing this on extremely light volume and the predominant market sentiment on the surface seems very bearish.
This would be a clear indication not to trade this stock at this moment in time, as a trader there would be lots of emotions of FOMO (fear of missing out) , seeing a stock making that kind off move on a new IPO - there is the sense that this stock will go to the moon and your not going to be involved.
As traders we have to consider the risk : reward potential. This stock could drop to $10.00 if someone put in a 50 k market sell order, as it is clear there are not the buyers to support that kind of liquidation.
The following charts are in the 5 second time frame, until otherwise stated
So we need to wait for some confirmation of buying liquidity before we can make any plans for taking an entry, which we get in the form of a couple of strong bullish candles on the chart below. Interestingly the price breaks the previous all time high for this stock, although the volume trend at this stage does not seem strong enough to consider an entry.
At this point we should be on the lookout for further buying liquidity, ideally to break the previous high volume line, which appears in the next chart. This would be the time to take an entry based on other aspects of a trading plan.
Having now taken an entry, we can use the indicator to understand the strength of the buying liquidity and identify areas where we should be looking to take profit or close out the trade. Looking at the volume trend profile shown in the chart below, there is no reason not to hold this stock for a wider move up.
In the next chart we see the first signs of some selling pressure, as the indicator shows signs of red. This would be the area to take some profit and look at a higher time frame perspective, to get the sense of whether to hold the remaining position.
Here on the 5 minute time frame the volume trend is still looking very strong to hold the remaining position. As it turned out it was a good place to take profit as it was just under the high of the day.
Knowing when an asset is going to reverse is not easy and this stock was way too over extended and a top had to finally come. This one minute view of the indicator, shows the point where you would see that the upward liquidity was over and you were now on the backside of the move, with no reason to trade further.
Here on a 15 minute chart you can see the full extent of the move and its reversal back to the original price. It provides a clear illustration that chasing trades through FOMO or holding and hoping is not a profitable approach. Being able to time your entries and exits, where you can clearly manage risk is one of the most important elements to any traders strategy.
This is an extreme example and not something you see every day in any market. It has been included within this narrative with the hope that it clearly illustrates the risk involved in trading and being able to mitigate them, has to be at the forefront of your mind.
Key Settings
Within the indicator settings there are a number of options that are available to users. All aspects of what you can see can either be changed or turned on or off in the "Style" tab as well as changing the colours and their transparency.
The available settings on the "Inputs" tab are for fine tuning the indicator to your style of trading. This fine tuning can be applied to the moving averages that can be displayed and follow the volume trend line as well as the volume filtering process.
The most important ones that are in need of explanation are outline below:
General Settings
"What type of asset is the Algo looking at" : Available Options = "Small Caps", "Large Caps", "Futures", "Currencies" (Default Setting = Currencies)
The indicator will make an assessment of the best settings to use as defaults for the volume filtering, confirmation and extremes signals. The defaults can be changed in the following sections using the override.
"Turn on Turbo Mode" : True or False (Default Settings = True)
This setting will give the indicator volume filtering processes a boost
Signal Settings
Based on the "Asset Type" from the general settings, the indicator will make an assessment of the best settings to use by default. These can be changed by using the settings below.
"Override Default Assessment Thresholds" = True / False
"Percentage Difference to Signify Trend Confirmation" = A percentage value that will tell the indicator how to identify the volume trend line swing points used to identify bullish or bearish confirmation signals. Values from 0.1 to 10 would make the most sense. A too high setting and you will not see any confirmation points plotted. Too low and you may see too many to be useful.
"Percentage Difference to Signify Extremes" = A percentage value that will tell the indicator how to identify the volume trend line swing points used to identify bullish or bearish confirmation signals. Values from 20 to 200 would make the most sense. A low a setting and you will see too many extreme points plotted.
Filter Settings
"Turn On Volume Assessment Filters" = True / False : The volume assessment filters are used to focus the "volume trend line" on higher volume extremes.
Based on the "Asset Type" from the general settings, the indicator will make an assessment of the best settings to use by default. These can be changed by using the settings below.
"Override Default Assessment Filters" = True / False
"Filter Volume using Setting" = The number used in this setting represents a value from 0 to 100. Zero will filter out no volume, whereas 100 would filter it all out. The default setting is 1, as there is a danger of setting this number too high and all you will see in the line chart is big steps up and down, with a plateaus in the middle. Which may be useful, although it would not be so helpful in divergence or volume line breaks.
Fast Moving Average
This is the fast moving average of the "Volume Trend Line".
"Moving Average Type" = The type of moving average calculation to be applied.
Default = "EMA"
Available Options: "SMA","EMA" ,"HMA" ,"SMMA (RMA)" ,"WMA" ,"VWMA"
Moving Average Key
SMA : Simple Moving Average
EMA : Exponential Moving Average
HMA : Hull Moving Average
SMMA (RMA) : Exponentially Weighted Moving Average (alpha = 1 / length.)
WMA : Weighted Moving Average
VWMA : Volume Weighted Moving Average
"Moving Average Length" = The number of candles back into the chart used to calculate the Moving Average. (The higher the number, the slower the moving average becomes)
Default Length = 60
"Apply Double Smoothing" = True or False : This is an option to turn on if an extra smoothing effect to the moving average if required.
Slow Moving Average
This is the slow moving average of the "Volume Trend Line".
"Moving Average Type" = The type of moving average calculation to be applied.
Default = "HMA"
Available Options: "SMA","EMA" ,"HMA" ,"SMMA (RMA)" ,"WMA" ,"VWMA"
(See moving average key)
"Moving Average Length" = The number of candles back into the chart used to calculate the Moving Average. (The higher the number, the slower the moving average becomes)
Default Length = 3500
(By default we have a higher number for the slow length compared to the long term length in the next setting. This is because using the Hull Moving Average, is an accelerated moving average that needs higher values to slow it down. If you were to change this to say an EMA, then you would need to change the length to something like 200, to put this slower moving average in context with the others).
Long Term Moving Average
This is a long term moving average of the "Volume Trend Line".
"Moving Average Type" = The type of moving average calculation to be applied.
Default = "EMA"
Available Options: "SMA","EMA" ,"HMA" ,"SMMA (RMA)" ,"WMA" ,"VWMA"
(See moving average key)
"Moving Average Length" = The number of candles back into the chart used to calculate the Moving Average. (The higher the number, the slower the moving average becomes)
Default Length = 400
"Apply Double Smoothing" = True or False : This is an option to turn on if an extra smoothing effect to the moving average if required.
Finally
We greatly appreciate the support and feedback from the Trading View community, and we are dedicated to continuing to improve our indicators with your support.
We want to help you manage risk, and that's why we emphasise that trading is risky and any technology used to support our trading decisions is based on information from the past. We encourage traders to take responsibility for their trading businesses and always prioritise risk management.
MACD Strategy - Backtest [AlgoRider]█ OVERVIEW
Hello dear Tradingviewers !
We are excited to share with you this new indicator which simulates a trading strategy based solely on the well-known technical indicator MACD . We designed it for the sole educational and analytical purposes of showing novice traders and new investors that basing a trading strategy only on one such technical indicator is not necessarily a good thing to do. We do not recommend to apply this strategy for real.
Thanks to this indicator redesigned in our own way by incorporating our simple and easy-to-use Backtest functionality, you will be able to see and report on the performance and results that such a strategy has produced in the past.
The configuration window has also been designed to be easily readable and simple to use. Our goal is to make parameter customization as easy as possible.
█ HOW THE STRATEGY WORKS
• The script will simply trigger Long entries when bullish MACD crossings appear (the Macd line crosses the Signal line upwards) and Short entries when bearish MACD crossings appear (the Macd line crosses below the signal line).
• A Short signal ends a Long trade, a Long signal ends a Short trade.
• The script also allows setting up custom TP and SL.
• An option allows you to trigger early crossings, which will influence entries and exits.
• There is no repaint, once an entry/exit symbol or drawing is displayed it doesn't change anymore. The Short and Long signals appear at the open of the candles, just after the signal was confirmed at the close of the previous candle. The custom TP and custom SL signals can appear when a candle is not yet finished, but once displayed they don't change.
█ HOW TO PROCEED
1 — Once the script is applied to your chart, it already works with its default settings. You can already see the performance of the strategy in the data table directly on the chart (in the top right corner by default).
2 — You can customize the strategy and influence the results/performance by modifying its parameters. 3 types of parameters are present and can be modified.
3 — You can use this indicator in all types of markets.
4 — You can apply the script in every timeframe.
█ PARAMETERS
• Settings For Backtesting
- Strategy : Choose from a drop-down list if the strategy should execute only Long trades or only Short trades or both. Default Both.
- Invest. : Choose the amount you want to invest in the simulation. Default 10000.
- Position : Choose the amount of the position (Size order) that will be used during the simulation. This will be the $ amount staked/involved for each trade entry.
Ex: If you put 20000 in position and 10000 in Invest. We consider that you use at least a leverage x2. Default 10000.
- Slipp. TP : Choose the amount in percentage of average slippage for Take Profits. This parameter makes it possible to predict a potential gap between the theoretical exit price for each TP (On the graph) and the real exit price on an exchange when implementing the strategy for real (slippage may be due to a time lag of a few seconds from execution time of the order on the exchange and/or due to the execution of a market order).
Ex: If a TP exit order of a Long trade, with entry $19000 (on BTCUSDT ), is carried out in theory on the chart at $20000, in practice on the exchange the script have indeed sent an exit order at 20000 , but if the true exit price is 20050, the TP slippage is then +0.25%. Default 0.
- Slipp. SL : Choose the amount in percentage of average slippage for Stop Losses. This parameter makes it possible to predict a potential gap between the theoretical exit price for each SL (On the graph) and the real exit price on an exchange when implementing the strategy for real.
Ex: If an SL exit order of a Long trade, entry $19000 (on BTCUSDT ), is carried out in theory on the chart at $18000, in practice on the exchange the script have indeed sent an exit order at 18000 $, but if the true exit price is 17950, the slippage SL is then +0.278%. Default 0.
- Fees % : Choose the percentage amount of fees applied to each trade to simulate the application of the strategy on the exchange of your choice. Applies to the entry and exit of each trade. Ex: For Binance Futures: 0.04; For Bybit futures: 0.06; For Ftx Futures: 0.075. Default 0.
- Cumulate Trades : If you check this, the Backtest will use 100% of the balance as Order Size (Position) for All or in the next X consecutive trades. Default not checked.
⚠️ Be Careful please, this option is available to show the full extent and possibilities of the algorithm when pushed to its limits thanks to the accumulation of profits (cumulative earnings ), but it is a strategy that involves great risk. If a bad trade suffers a -50% loss, 50% of the account balance is lost, if the position is liquidated, the entire account balance is lost.
- All : If you check this All trades will be accumulated. Default not checked.
- Consecutive Trades : Choose the number of trades to accumulate. After X consecutive trades, the algorithm reassigns the initial order size to the current one and starts again for X consecutive trades. Minimum Value 2, Default 2.
• Settings To Optimize Performances and Risk Management
- Fast_MA : Choose the length of the Fast Moving Average. Default 12.
- Slow_MA : Choose the length of the Slow Moving Average. Default 26.
- Enable Early Crossings : If you check this, when the algorithm will detect an early crossing wethere bullish or bearish , it will trigger the Long or Short entries. Default not checked.
- Oscillator MA Type : Choose if the Macd line should be an Exponential Moving Average or a Simple Moving Average . Default Expo.
- Signal Line MA Type : Choose if the Signal line should be an Exponential Moving Average or a Simple Moving Average . Default Expo.
- Use TP / Use SL : If you check these, the algorithm will trigger personalized trade exit signals when the price evolution has reached the amounts indicated since the trade entry. Default not Checked.
- % TP - SL : Indicate here the personalized amount in percentage that you want for your Take Profit and Stop Loss of each trade. Default 15-5.
• Settings For Appearances
- Small-size Data Table : If you check this, the data table will become smaller to free up more space on the chart to make it visually more pleasing. Default not checked.
Hide Table /
- Hide Labels / : You can check these to get a cleaner chart and focus only on what interests you in the indicator. Default not checked.
Hide Risk-Reward Areas
█ LIMITATIONS
• ⚠️ We repeat it once again, this strategy is not intended to be reproduced in real conditions, we have designed it for educational and analytical purposes only.
• Even if you see good performances when you backtest the strategy, you must take into account that these results are performed in the past and that in no case does this guarantee that these same performances will be repeated again in the future.
• When you run for real a trading strategy you must be aware of the fact that you are solely responsible for the results that you will be able to obtain and you must be aware of the possibility at all times of partial or even total losses of your invested capital.
• Keep in mind that generating profits in trading is difficult. A strategy can perform very well at one time in the past during a period that is favorable to it, then from one day to the next it can give really bad results for several months or years.
• When backtesting a trading strategy, there are many factors to consider, not just trade entries to which you add a Take Profit and sometimes a Stop Loss. You must at least take into account the size of the position in relation to the capital you want to invest, the trading fees, the slippages (which can be really important depending on the exchange on which you are trading and depending on the asset you are trading), trading frequency, risk management, momentum, volumes and even more.
The information published here on TradingView is not prohibited, doesn't constitute investment advice, and isn't created solely for qualified investors.
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Important to note : our indicators with the same backtesting system are published in separate publications, because putting them together in a single script would considerably slow down the execution of the script. In addition each indicator, even when it is based on a simple technical indicator, has several options, parameters and entry/exit conditions specific to the underlying technical indicator. Finally, we want to keep the simplicity of use, configuration and understanding of our indicator by not mixing strategies that have nothing to do with each other.
Miyagi STrendMiyagi: The attempt at mastering something for the best results.
Miyagi indicators combine multiple trigger conditions and place them in one toolbox for traders to easily use, produce alerts, backtest, reduce risk and increase profitability.
Miyagi STrend was created to allow traders the ability to both scalp and swing trade from as singular indicator. STrend aims to help traders catch more of the move.
STrend starts with the native TradingView SuperTrend indicator and adds in extra filtering in the form of the SuperTrend Oscillator (ST OSC), and an Adaptive Moving Average (AMA) - all of which are adjustable.
Entry conditions start with the following:
Long Entry: SuperTrend must be green (candles above SuperTrend), price above the Adaptive Moving Average (AMA), and lastly the SuperTrend Oscillator (ST OSC) at maximum +100.
Short Entry: SuperTrend must be red (candles below SuperTrend), price below the Adaptive Moving Average (AMA), and lastly the SuperTrend Oscillator (ST OSC) at maximum -100.
Exits are provided for both directions, long and short, when the SuperTrend Oscillator (ST OSC) hits maximum (+100/-100).
Please note the SuperTrend Oscillator (ST OSC) is not shown on the chart however is used for the final calculation to confirm entries.
We have added an "Entry on Exit" selector which allows users to enable entries on exit candles. This may allow more trades, however will incur more risk.
With "Entry on Exit" selected entry and exit alerts CAN fire in same candle and may require delays if using STrend as a swing indicator.
Without "Entry on Exit" selected entry and exit alerts CANNOT fire in same candle. This will produce less signals overall however may be safer for traders to use.
It would be best suited to utilize a stoploss when trading with Miyagi STrend to minimize risk.
Alerts are meant to fire on "Once per Bar Close" to confirm entry and exit signals.
Happy Trading!
UTG Trade Manager [V1]Position Sizing and Risk Management tool
See your trading plan directly on your chart . Enter >> Entry price, Take profit, Stoploss, capital, leverage, and see liquidation prices directly in association with entrys and stop losses
[TT] Daily Levels
These pivots are based on calculations that i have been using for quite some time. I'm sure There is no need to explain on how to use pivots.
Labels are given to understand and you can Msg me here or comment if u need any explanation.
I have given few examples below.. check i t out
XAUUSD
BTCUSD
Nifty
Banknifty
TridentI call this strategy "Trident", as it uses three different, modified, customizable indicators:
50 Exponential Moving Average (Trend)
Relative Strength Index (Momentum)
Average Directional Index (Volatility)
Strategy will be improved with future updates. You alone decide when to enter and when to exit a trade. PRICE ACTION IS KING and the TREND IS YOUR FRIEND
What do these three indicators tell us
Exponential Moving Average:
Trend
Price < EMA = downtrend
Price > EMA = uptrend
trend direction and reducing noise
Average Directional Index:
Volatility
direction of market movement when there is a sharp increase in volatility
Relative Strength Index:
Momentum
Strength
Possible shift in momentum
How this strategy works
As I mentioned above, this strategy uses uses three different, modified, customizable indicators:
Exponential Moving Average (50) (Trend): When price closes above or below the 50 period EMA, then the first condition is met. I know some people use multiple EMAs as dynamic support and resistance levels. Therefore, I also added a 21 and a 200 period EMA, but this strategy uses specifically the 50 period EMA as one of three conditions. All EMAs can be adjusted, turned on and off.
Relative Strength Index (80, 20, 3) (Momentum): In his video, TSM uses a 3 period RSI and 80 and 20 bands. If price is above 80, it`s overbought and if it`s below 20, then it`s oversold. Two out of three conditions are met.
Average Directional Index (5, 5) (Volatility): TSM uses the ADX to measure the volatility. Both ADX Smoothing and DI Length are set to 5. If this indicator moves above 30, then the third contidion is met.
Rules to enter the trade
Long Entry:
50 EMA < Price
RSI < 20
ADX > 30
Enter trade at breakout of high of the green candle, which is the candle that pulls the RSI from oversold conditions back inside.
Short Entry:
50 EMA > Price
RSI > 80
ADX > 30
Enter trade at breakout of low of the red candle, which is the candle that pulls the RSI from overbought conditions back inside.
Risk:Reward and Timeframe
Use a 1:1 to 1:1.5
Set your S/L below key levels (-> 2nd point @ Tips), or twice the length of the signal candle
Preferably 5 Minute Time Frame, but at the end you decide
Tips
Avoid periods of consolidation
Trade from support/resistance-levels, supply/demand-levels, pivot points-levels, Fibonacci-levels, swing high/low-levels
Trade during market hours, for example London and New York Session
Trade narrow spreads, if you scalp
Use Price Action
Trade with the trade, not against
The further away the price moves from the EMA the stronger the trend
The long the price doesn't touch the EMA the stronger the trend
RSI + ADX: Confirm when the market is turning and pick a good entry point
ADX + 50 EMA: Filters trades when there is not much activity in the market
I mentioned above that the code of this strategy is still under development. You can not only rely on this strategy alone as it might give you false signals. I coded this, because it makes it easier to visualize were all three conditions are met.
Use your brain, use price action, use these tips, use this strategy.
Frequently Asked Questions
Does it only work for scalping? - No, but try it out yourself
Does it only work for Forex? - No, but try it out yourself
Does only work on the 5 Minute Timeframe? - No, but try it out yourself
Good Luck!
Scalping EMA ADX RSI with Buy/Sell AlertsThis is a study indicator that shows the entries in the strategy seen in one of the youtube channel so it does not belong to me. I can't tell who it is because it's against the House Rules to advertise but you can find out if you look for it on youtube. Default values of oscilators and ema adjusted as suggested. He says he got the best results in 5 min timeframe but i tried to make things as modifiable as possible so you can mess around with the settings and create your own strategy for different timeframes if you'd like. Suggested to use with normal candlestick charts. The blue line below indicates the ADX is above the selected threshold set in the settings named "Trend Ready Limit". You can set alerts for Buy, Sell or Buy/Sell signal together.
The entry strategy itself is pretty straight forward.
The rules for entry are as follows, the script will check all of this on auto and will give you buy or sell signal :
Recommended time frame: 5 min
For Long Entry:
- Check if price above the set EMA (Can disable this rule if you'd like in the settings)
- RSI is in Oversold
- ADX is above set "Trend Ready" threshold (Meaning there is a trend going on)
- Price must approve the trend of previous candles. This is bullish for buy entries and bearish for sell entries.
- Enter with stop loss below last swing low with 1:1 or 1.5:1 take profit ratio.
For Short Entry:
- Check if price below the set EMA (Can disable this rule if you'd like in the settings)
- RSI is in Overbought
- ADX is above set "Trend Ready" threshold (Meaning there is a trend going on)
- Price must approve the trend of previous candles. This is bullish for buy entries and bearish for sell entries.
- Enter with stop loss above last swing high with 1:1 or 1.5:1 take profit ratio.
This is my first indicator. Let me know if you want any updates. I am not sure if i can add everything but i'll try nonetheless.
Changed: Signals will check up to 2 candles before if the RSI is below or above the set value to show signal. This is because sometimes the entry signal is right but the response might be a bit late.
RSI 30 CROSSScript will give the RSI 30 40 and 70 level for present price of the stock , when the price cross the green line RSI value will be 70 , blue line RSI value will be 40 and red line RSI value will be 30 . Helps to put entry and exit based on RSI strategy.
RED line give price for RSI 30
BLUE line give price for RSI 40
GREEN line give price for RSI 70
BLACK line give SMA 200
Strategy
Stock price should above 200 MA
price should touch RSI 30 RED line and bounce back.
Entry will be the high of candle lies on RSI 40 BLUE line.
Stop loss will be the RSI 30 price(RED line ) during entry.
Target will be the RSI 70 price ( GREEEN line) during entry.
You can take half profit at RSI 70 and trail stop loss on RSI 70 till it cross.
This will help you to find the Price for stock, when it cross RSI value 30 , 40 and 70 to place entry exit and target based on the trade strategy will follow RSI.
If you want to entry, when stock cross RSI 30 or 40 from below . You can place a stop loss limit buy order at price range .
If you want to exit, When stock cross RSI 70 . you place stock loss at green line price.
FY Forex ScalperFy Forex Scalper Indicator:
A powerful indicator that you can use to scalp forex markets, it helps you identify the trend and direction of the market in both long term and short term time frames. The Arrows give you entry points. Read the detailed explanation below and if you have any questions feel free to message.
How does it work:
Fy Forex Scalper has two main aspects one is candles and the other is band both are color coded and works independently. As we all know, markets are not always trending and often move in a tight range. The Fy Forex Scalper indicator assists you in identifying trading opportunities by displaying trading zones and non-trading zones by painting the candles in three different colors: red, yellow, and green. When the candles are red, the script is in the selling zone, when the candles are green, the script is in the buying zone, and when the candles are yellow, the script is non trading zone. The band mainly works as support and resistance and gives you overall trend direction, If the band is red the trend direction is down and if band is in green the trend is up. So both candles and band give you the trend direction how to enter the trade explained below.
How to enter the trade:
Long Entry: Enter the trade when you get the up arrow near the band and make sure the band color is green. When you get the up arrow and band is red you can consider it as false signal.
Short Entry: Enter the trade when you get a down arrow near the band and make sure the band color is also red. When you get the down arrow and the band is in green color you can consider it as a false signal.
What markets it work:
Mainly use it for Forex, Crypto or scripts that move faster.
What time frame is best:
Use 5 mins when the market is moving (like Asian or London opening) use one min when the market isn’t moving.
Can we use it for Swing Trading:
Though it works , but the primary purpose of this indicator is for scalping so better use it on shorter time frames.
How to get access:
This is invite only script so to get access message me.
Momentum Reversal StrategyBEST USE IN 15MIN TIME FRAME EURUSD / XAUSUD
1. Strategy Overview
This strategy hunts short-term momentum reversals at key levels during high-liquidity sessions.
Timeframes: 5-minute for entries; 15-minute for trend context
Sessions: London for EUR/USD & GBP/USD; New York for XAU/USD
Pairs: EUR/USD, GBP/USD, XAU/USD
Indicators (3 max):
EMA(20) and EMA(50) (close)
MACD (12, 26, 9) histogram
Optional: RSI(14) (for divergence filter)
2. Entry Rules
Trend Filter (15 min):
Long only if EMA20 > EMA50; short only if EMA20 < EMA50.
Price-Action Zone (5 min):
Identify recent swing high/low within past 20 bars.
Draw horizontal support (for longs) or resistance (for shorts).
Indicator Alignment (5 min):
MACD histogram crossing from negative to positive for longs, positive to negative for shorts.
Candle close beyond EMA20 in direction of trade.
Candle Confirmation:
Bullish engulfing or hammer at support for longs; bearish engulfing or shooting star at resistance for shorts.
Entry Execution:
Place market order on candle close that meets all above.
3. Exit Rules
Stop-Loss (SL):
Long: 1.5× ATR(14) below entry candle low.
Short: 1.5× ATR(14) above entry candle high.
Take-Profit (TP):
Set at 2× SL distance (RR 1:2).
Trailing SL:
After price moves 1× SL in profit, trail SL to breakeven.
Partial Booking:
Close 50% at 1× SL (50% of TP), move SL to entry.
Close remaining at full TP.
4. Trade Management
False Signal Filter: Skip trades when RSI(14) > 70 for longs or < 30 for shorts (avoids overbought/oversold extremes).
One Trade at a Time: No multiple positions on same pair.
Session Cutoff: Close any open trade 15 minutes before session end.
5. Risk Parameters
Risk per Trade: 1% of account equity.
Reward Target: ≥2% (1:2 RR) per trade.
Win-Rate Expectancy: ≥75% based on indicator confluence and price-action confirmation.
ICT Dr FX with SMA EMA Cloud & Squeeze Arrows📊 ICT Dr FX — Advanced TradingView Indicator with SMA/EMA Cloud & Squeeze Signals
Take your trading to the next level with ICT Dr FX, a comprehensive indicator that integrates institutional trading strategies (ICT) directly into your charts. Combining advanced price action techniques, dynamic market zone detection, and real-time squeeze signals, this tool offers unparalleled insight for traders of all levels.
🔍 Key Features
Market Structure Analysis
Automatic detection of Market Structure Shifts (MSS) and Break of Structure (BOS)
Dynamic support/resistance zones with customizable color schemes
Advanced Candlestick Patterns
Detection of Bullish/Bearish Engulfing Patterns
Institutional volume entries: Volume Spikes + Strong Candle Bodies
Critical Market Zones
Order Blocks (OBs) with sensitivity controls
Fair Value Gaps (FVG/IFVG) with breakout alerts
Liquidity Pools and
Opening Gaps (NWOG/NDOG) for early positioning
AI-Powered Squeeze System
Real-time Squeeze Arrows at breakout points
Identifies three phases:
🔴 Squeeze Off (breakout complete)
🟠 Mid Squeeze (active compression)
⚪ No Squeeze (neutral state)
Dynamic Moving Average Clouds
SMA Cloud (180–200): Trend-colored for long-term bias
EMA Cloud (34–63): Directional filter for precision entries
Professional Time Filters (Killzones)
Highlights major trading sessions with clarity:
Asia: 10:00–14:00
London Open: 07:00–10:00
London Close: 15:00–17:00
New York: 07:00–09:00
💡 Why ICT Dr FX?
⚙️ Optimized Presets: Smart inputs tailored for multiple strategies
🎨 Unified Visual System: Consistent color coding across signals
⚡ Lightweight Engine: No chart lag despite rich features
⏱️ Multi-Timeframe Support: Perfect for scalping and swing trading alike
🛠️ How to Use (Sample Strategies)
🔹 FVG + Squeeze Strategy
Entry: On FVG retest + Green Squeeze Arrow
Exit: At opposing liquidity zone
🔹 Order Block + SMA Strategy
Entry: On Bullish OB retest + SMA Cloud Blue
Stop Loss: Below liquidity sweep zone
📥 How to Get It
Run the exclusive TradingView code and analyze the markets with a professional, institutional-grade lens.
t.me
TQQQ Live PnL TrackerTQQQ PnL Tracker by IceTrader Team - #MakeMyPortfolioGreatAgain
Once you add the script, modify this section of the code to match your exact TQQQ order and start tracking its Profit/Loss.
code block:
entryPrice = 86.65 (set the price at which you bought)
positionSize = 1155 (set the exact quantity of stocks you bought)
direction = "Long" (Change to "Short" if it's a short trade)
Bitcoin_1min_TF V1This indicator should be applied only to Bitcoin chart at 1minute Time Frame. It can be used on higher timeframe, however, it's accuracy has been tested only on 1 minute time frame.
For any other chart, it will not work.
Basics of this indicator comes from Price Action which then modulated with ATR, EMAs, Machine Learning from previous data and risk management to give higher accuracy and low capital drawdown.
Since this indicator gives n number of opportunities within a day, it is important to understand the impact of overtrading. So, it is advised to do a disciplined trading and set trading hours in a day to grabs the profits impactfully in a disciplined way and avoid overtrading.
Keep greed away from trading.
Thanks for using the indicator. If you find it good, support me with your positive comments and do share this indicator within your friend/family circle.
I am working on similar indicator for other chart types. Stay in touch until then.
How to use the Indicator-
1. It gives you an indication (up/down arrow) of possible entry and also draws SL & TP line & entry line. Don't enter at the current candle when SL/TP/Entry line are moving since this is only possible entry signal.
2. On the next candle, once price reaches/crossed entry line drawn, take entry.
3. Monitor your trade and exit at SL/TP.
4. Please note, SL can trail if required.
Happy Trading.
Bollinger Bands📊 Bollinger Bands Strategy: Ride the Waves of Volatility 🌊
Bollinger Bands are a powerful tool to identify overbought and oversold conditions, volatility breakouts, and price reversals. This strategy uses:
🔹 Middle Band – 20-period simple moving average
🔹 Upper & Lower Bands – 2 standard deviations away from the SMA
💡 Strategy Logic:
Buy Entry: When price closes below the lower band and RSI < 30 → Expect mean reversion.
Sell Entry: When price closes above the upper band and RSI > 70 → Possible pullback.
Exit: Near middle band or opposite band.
📈 You can also use Bollinger Band squeezes to detect upcoming breakouts. Less distance = low volatility → Expansion = potential big move!
🧠 Great for swing trading or intraday scalping with proper risk management.