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[DS]Bitcoin BTC ETH and others cryptos==DESCRIPTION - English version The purpose of this script is to show information on graph that can help your decision to buy and sell cryptos. The script is indicated for Position Trade (Long Term - Holder) and Swing Trade (Medium term). Position Trade it is recommended to use the Weekly (W) and Daily (D) charts, Swing trade to use the 4H and 2H charts. It is not advisable to use this indicator with graphic time frame less than 2 hours because the noise levels of information are very high. An alert function has been inserted in the indicator and to activate this function you will need configure it in the Tradingview. This alert will indicate the likely points of entry and exit of the asset. **DESCRIÇÃO - Versão em Português A proposta deste script é mostrar no gráfico informações que possam auxiliar a sua decisão de compra e venda de cryptos. Este script é indicado para negociação Position Trade (Longo Prazo - Holders) e Swing Trade (Médio prazo). Para Position Trade (Holders) é indicado utilizar os gráficos Semanal (W) e Diário (D), para Swing trade utilizar os gráficos 4H e 2H. Não é aconselhável utilizar este indicador com tempos gráficos menores que 2hs pois os níveis de ruídos nas informação são muito altos. Foi inserido no indicador uma função de alerta e para ativar esta função, você precisará configurá-la no seu Tradingview. Este alerta irá indicar os provaveis pontos de entrada e saída do ativo. ==================================================================================================== ** English Version ==================================================================================================== █ SETUP applied to Indicator The setup is based on the average 8, 21 and 56 of the weekly chart (taught on youtube channel: Augusto Backes) Price above the average 8 on the weekly, indicates that the market is UP trend, below the average 8 on the weekly that the market is DOWN trend RSI greater than 60% the market is UP trend RSI greater than 40% and lower 60% the market is in ACCUMULATION RSI less than 40% the market DOWN trend The weekly average 8 is represented in GREEN (Upward Trend) and RED (Downward Trend). The weekly average 21 is represented in LIGHT ORANGE The weekly average 56 is represented in LIGHT PURPLE The crossing of weekly averages 8 and 21 is represented with a GREEN (HIGH trend) and RED (LOW trend) cross - this signal is disabled on the graph but you can enable it by clicking on the graph setup █ FUNCTION USE (1) Average 8, 21 and 56 on Weekly - show the average 8, 21, 56 weekly on graphic (Average 8 in color red and green, 21 - light orange, 56 light purple) (2) Crossing of averages 8 and 21 Weekly - is not active but you can activate (3) Calculation of RSI (4) barcolor() - mark the candles with the green color (High market) and red color (Dow market) (5) alertcondition() - you can active this alert on Tadingview █ BUY AND SELL POINTS - likely points The indication of the BUY position is shown by a green arrow pointing upwards and the sell position by a red arrow pointing downwards. Buy and sell indications are obtained from the divergence in the market trend. █ THANK TO PineCoders for everything they do, all the tools and help they provide, and their involvement in making a better community. All PineCoders, Pine Pros and Pine Wizards, people who share their work and knowledge because of it and helping others, I am so happy and so grateful. █ NOTE This indicator is not a buy and sell recommendation, it indicates the most likely buy and sell points. Every purchase and sale decision is your responsibility ***************************************************************************************************** ** Versão em Português ***************************************************************************************************** █ SETUP aplicado no Indicador O setup está baseado na média 8, 21, e 56 do gráfico semanal Preço acima da média 8 no semanal indica que o mercado esta em tendência de ALTA, abaixo da média 8 no semanal que o mercado está em tendência de BAIXA RSI maior que 60% o mercado está em ALTA RSI maior que 40% e menor 60% o mercado está em ACUMULAÇÃO RSI menor que 40% o mercado está em BAIXA A média 8 semanal está representadas nas cores VERDE (Tendência de Alta) e VERMELHA (Tendência de Baixa). A média 21 semanal está representada na cor laranja claro A média 56 semanal está representada na cor roxa claro O cruzamento das médias 8 e 21 semanal esta representado com uma cruz VERDE (Tendência de ALTA) e VERMELHA (Tendência de BAIXA) - este sinal esta desativado no gráfico mas você pode ativá-lo clicando no setup do gráfico █ FUNÇÕES UTILIZADAS (1) Média 8, 21 e 56 no Semanal - mostra a média 8, 21, e 56 no gráfico (2) Cruzamento das médias 8 e 21 Semanal - não está ativo mas você pode ativá-lo (3) Cálculo do RSI (4) barcolor() - marca a vela (Candle) com a cor verde (Mercado em Alta) e a cor vermelha (Mercado em Baixa) (5) alertcondition () - você pode ativar o alerta no Tradingview █ PONTOS DE COMPRA E VENDA - prováveis pontos A indicação da posição de COMPRA é apresentada por uma seta na cor verde apontada para cima e a posição de VENDA por uma seta na cor vermelha apontada para baixo. As indicações de compra e venda são obtidas a partir da divergência na tendência do mercado. █ OBRIGADO PARA PineCoders por tudo o que fazem, todas as ferramentas e ajuda que fornecem, e seu envolvimento em fazer uma comunidade melhor. Todos os PineCoders, Pine Pros e Pine Wizards, pessoas que compartilham seu trabalho e conhecimento por causa dele e ajudando os outros, estou muito feliz e muito grato. █ NOTA Este indicador não é uma recomendação de compra e venda ele indica os pontos mais prováveis de compra e venda. Toda decisão de compra e venda é de sua responsabilidade
Pine Script® indicator
by DalmarSantos
18
Supertrend with Chop SuppressionA Standard Supertrend indicator with Chop Suppression added to minimize bad entries when the market goes sideways. Chop Suppression will hide alerts/entry signals that otherwise would have been generated during sideway price action. Recommend using this indicator with a secondary long-term trend indicator such as VWAP or 200 EMA . Trade with the long-term trend for higher success rates. You can use either traditional fixed stop loss and profit taking or adjust the stop loss with the rising Supertrend line and exit when color of Supertrend changes. Good luck!
Pine Script® indicator
by LA_Crypto_Pirate
7
Abnormal Pin BarPin Bar is one of the most important candlestick patterns. Almost every time you see a pin bar, you can expect the price to turn in the opposite direction. You should pay more attention to the abnormal ones among the pin bars. What I mean by abnormal pin bar is that the long leg is at least 3 times larger than the body. With this indicator, you can set your own abnormal pin bar settings. The indicator will highlight abnormal pin bars according to the settings you specified. The indicator uses the following three factors to indicate abnormal pin bar: - Minimum body ratio in the pattern in percent - Minimum ratio of the long shadow to the body - Minimum ratio of the long shadow to the short shadow Also, there is a volume strength check to confirm the pin bar. If the volume where the pin bar is formed is greater than the 20 volume average, it indicates that the pin bar is more important. Of course, confirming the pin bar with the volume is optional and you can disable it in settings if you wish. You can use the highlights of this indicator as an entry signal if the pin bar appears at the trend key levels or in support or resistance zones.
Pine Script® indicator
by bhnmzm
13
Buy Dip Sell High by BahagHariThis indicator help to buy the Dip. But not just simply buy the dip and catch the falling knife. We look for the break out of inside candle before we execute a trade. Inside candles are those candles who did not break the previous high and previous low. Instruction given is for buying the dip, kindly reverse the idea in selling high. Rule #1: We do not buy the dip, instead we put a buy stop onto the high of the most recent red outside candle. Rule #2: If a new downward outside candle appears, we move the buy stop to that new candle high. Rule #3: If an inside candle appears, we move the buy stop back to the previous outside candle high. A line keeps following the price action, it was drawn to easily spot the inside candles and set stop buy above(Long)/below(Short) the line. Useful for more precise entry but should not be used solely. Need to be combined with other indicator.
Pine Script® indicator
by m4cr0
1
Forex Scalp Triggersthe triggers only work to tell you go back 5 candles on 5 min, take either lowest or highest plus 3 pips and make entry and go 3 pip over under trigger for stop loss. can take half profit at 1x and move stop to break even and go 1x more for take rest profit, or create a trailing stop loss on Take Profit level 2 and ride the trend. 1 Hour chart has to be over under the emas that are faned out nicely to move to 5 min chart to look for the signals if 1hr chart isnt over under the emas nicely then NO TRADE ForexSignalTV helped create this strategy, just my first script so learning, want to take it to next level but kind of stuck for now. More knowledge coming...
Pine Script® indicator
by When-In-Rome-LXXVII
1
Ace Pro Gold Spot XAUUSD 8Min Long IndicatorThe Ace Pro Gold Spot XAUUSD 8 Minute Long Indicator calculates overbought and oversold conditions. It focuses on momentum to identify whether the market is overbought or oversold. If it detects that the market is oversold, it gives an alert of “long entry” If it detects that the market is overbought, it gives an alert of “long exit” Users are also able to set notifications on Tradingview with this version of the indicator. To set an alert, after adding the indicator, at the top left of the chart where the indicator is listed, click on the "more" option (three dots), and then select "Add alert." Please note the following: This indicator is designed only for use on the 8 minute XAUUSD OANDA Gold Spot / U.S. Dollar chart It is only to be used for opening and closing long positions. It is not recommended for use with short positions. It is not recommended for use with time frames other than the 8 minute. In a sideways market, or during a violent move, it is likely to produce false signals. Traders must use confluence from their technical analysis to enter trades. Traders must use confluence from their technical analysis to enter trades.
Pine Script® indicator
by DealerBTC
TrendHunterThis indicator aims to provide a clean visual clue about trends and also possible entry/exit points. Green background + green arrow buy signal = strong buy. Red background + red arrow sell signal = strong sell. Green background + red arrow = Possible end of the uptrend. Might be an opportunity to sell the top or open a short position for a scalp. Red background + green arrow = Possible end of the downtrend. Might be an opportunity to buy the bottom or open a long position for a scalp. Annual subscription, 50 spots. Contact: trendhunter@protonmail.com
Pine Script® indicator
by TheTrendHunter
6
MM-Burj Khalifa Indicator This indicator uses several signals to visualize a "perfect candle" to enter a trade. It colors the background to identify the zones of interest (multiple configurable high or low RSI zones). Underlying is a trendbar with the current MACD direction. It's possible to tweak the indicator with a lot of options in the settings section (e.g. for which period you want a rising DM+-signal, etc.) The indicator is using signals of: --MACD --RSI --PVT --ATR --AD and DMI+/DMI- When all 7 criterias are met it highlights the candle. It also creates different colums with different height and width, so that you can see which signal is OK and which is maybe missing. When all signals are on GO you'll see a Burj-Khalifa-like figure. If not all signals are on GO you'see crippled versions. To be clear: it's not intended to detect trends or supertrends or reversals. It's purpose it's just to decide if this current candle is really going in the right direction. It doesn't prevent upcoming reversals in the opposite direction. The Burj-Khalifa indicator could help to confirm the entry point of an trade which was already planned. I'll come up with a more detailed documentation.
Pine Script® indicator
by Meunier
10
ICT Sweep + FVG Entry (v6) • Pro Pack 📌 ICT Sweep + FVG Entry Pro Pack This indicator combines key ICT price action concepts with practical execution tools to help traders spot high-probability setups faster and more objectively. It’s designed for scalpers and intraday traders who want to keep their chart clean but never miss critical market structure events. 🔑 Features Liquidity Pools (HTF) • Auto-detects recent swing highs/lows from higher timeframes (5m/15m). • Draws both lines and optional rectangles/zones for clear liquidity areas. Liquidity Sweeps (BSL/SSL) • Identifies when price sweeps above/below liquidity pools and rejects back. • Optional Grade-A sweep filter (wick size + strong re-entry). Fair Value Gaps (FVGs) • Highlights bullish/bearish imbalances. • Optional midline (50%) entry for precision. • Auto-invalidation when price fully closes inside the gap. Killzones (New York) • Highlights AM (9:30–11:30) and PM (14:00–15:30) killzones. • Option to block signals outside killzones for higher strike rate. Bias Badge (DR50) • Displays if price is trading in a Bull, Bear, or Range context based on displacement range midpoint. SMT Assist (NQ vs ES) • Detects simple divergences between indices: Bearish SMT → NQ makes HH while ES doesn’t. Bullish SMT → NQ makes LL while ES doesn’t. SL/TP Helper & R:R Label • Automatically draws stop loss (at sweep extreme) and target (opposite pool or recent swing). • Displays expected Risk:Reward ratio and blocks entries if below your chosen minimum. Filters • ATR filter ensures signals only appear in sufficient volatility. • Sweep quality filter avoids weak wicks and fake-outs. 🎯 How to Use Start on HTF (5m/15m) → Identify liquidity zones and bias. Drop to LTF (1m) → Wait for a liquidity sweep confirmation. Check for FVG in the sweep’s direction → Look for retest entry. Use the SL/TP helper to validate your risk/reward before taking the trade. Focus entries during NY Killzones for maximum effectiveness. ✅ Why this helps This tool reduces screen time and hesitation by automating repetitive ICT concepts: Liquidity pools, sweeps, and FVGs are marked automatically. Killzone timing and SMT divergence are simplified. Clear visual signals for entries with built-in RR filter help keep your trading mechanical. ⚠️ Disclaimer: This script is for educational purposes only. It does not provide financial advice or guarantee results. Always use proper risk management.
Pine Script® indicator
by agagnon2005
Auto Entry/SL/TP Zones + Dashboard (Fib + MACD Edition)🔥 Auto Entry/SL/TP Zones + Dashboard (Fib + MACD Edition) This indicator automatically builds Entry, Stop Loss, and Fibonacci-based Take Profit zones on the chart. It also includes a smart dashboard that combines multiple confirmations to help filter false signals. Features: 📍 Automatic Entry / Stop Loss / Take Profit (TP1, TP2, TP3) zones. 📊 Dashboard with real-time market conditions. 📈 RSI + Trend (SMA50) + MACD + Divergences + Volume filter. 🎯 Clear LONG / SHORT / WAIT signals. 🚦 Highlights bullish/bearish divergences. 🟢 Works on any symbol & timeframe. Usage: When the dashboard shows LONG, follow blue Entry zone with green TP targets above. When SHORT, follow red Entry zone with green TP targets below. If WAIT, market conditions are unclear – avoid entry. ⚡ Designed for both intraday and swing traders.
Pine Script® indicator
by Bonavivitalik
1
Auto Entry/SL/TP Zones + Dashboard (Fib + MACD Edition)🔥 Auto Entry/SL/TP Zones + Dashboard (Fib + MACD Edition) This indicator automatically builds Entry, Stop Loss, and Fibonacci-based Take Profit zones on the chart. It also includes a smart dashboard that combines multiple confirmations to help filter false signals. Features: 📍 Automatic Entry / Stop Loss / Take Profit (TP1, TP2, TP3) zones. 📊 Dashboard with real-time market conditions. 📈 RSI + Trend (SMA50) + MACD + Divergences + Volume filter. 🎯 Clear LONG / SHORT / WAIT signals. 🚦 Highlights bullish/bearish divergences. 🟢 Works on any symbol & timeframe. Usage: When the dashboard shows LONG, follow blue Entry zone with green TP targets above. When SHORT, follow red Entry zone with green TP targets below. If WAIT, market conditions are unclear – avoid entry. ⚡ Designed for both intraday and swing traders.
Pine Script® indicator
by Bonavivitalik
DP_ORB Entry & Exit IndicatorDisclaimer: This indicator is for educational purposes only. It does not constitute financial advice. Always do your own research and manage your risk. Also, I cannot take full credit for 'ORB' as its a well known strategy amongst many traders, but I do need to give a special shout out to @TheBigDaddyMax for putting me on to this. DP_ORB Entry & Exit Indicator Description: The DP_ORB Entry & Exit Indicator is a powerful tool designed for traders who utilize the Opening Range Breakout (ORB) strategy on the NYSE session. This indicator visually identifies the initial volatility window of the trading day, by marking the 15m High, and 15m Low into a ORB Box, & then tracks breakout opportunities, and provides clear, dynamic trade management levels—all directly on your chart. Key Features: Automatic Opening Range (ORB) Box: Identifies and plots the high and low of the user-defined opening range (default 9:30–9:45 NYSE) for visual reference and strategy foundation. Breakout Entry Signals: Automatically detects and marks long or short breakout entries when price closes above or below the ORB range, with additional momentum confirmation. Dynamic Stop Loss: Stop loss is intelligently set to the previous bar’s low for long trades (or high for shorts), adapting to market structure at entry. Take Profit Targets: Up to three fully adjustable take-profit levels are plotted, calculated as percentages from entry, supporting progressive trade management. Visual Trade Management: Entry, stop loss, and take profit levels are displayed as extending dashed lines from entry point to the current bar, with labels always shown just to the right of price for clarity on all timeframes. Automatic Reset and Cleanup: Visuals and logic reset daily and upon exit, ensuring a clean, uncluttered chart experience. How to Use: Set your preferred opening range time and take profit levels in the settings. Wait for a breakout and confirmation during the NYSE session. Use the on-chart lines and labels to manage your trade according to your risk and strategy plan. Best For: Day traders and scalpers seeking a disciplined, visual, and fully-automated approach to opening range breakout trading.
Pine Script® indicator
by dp_Betz
18
Crypto Long RSI Entry with AveragingIndicator Name: 04 - Crypto Long RSI Entry with Averaging + Info Table + Lines (03 style lines) Description: This indicator is designed for crypto trading on the long side only, using RSI-based entry signals combined with a multi-step averaging strategy and a visual information panel. It aims to capture price rebounds from oversold RSI levels and manage position entries with two staged averaging points, optimizing the average entry price and take-profit targets. Key Features: RSI-Based Entry: Enters a long position when the RSI crosses above a defined oversold level (default 25), with an optional faster entry if RSI crosses above 20 after being below it. Two-Stage Averaging: Allows up to two averaging entries at user-defined price drop percentages (default 5% and 14%), increasing position size to improve average entry price. Dynamic Take Profit: Adjusts take profit targets after each averaging stage, with customizable percentage levels. Visual Signals: Marks entries, averaging points, and exits on the chart using colored labels and lines for easy tracking. Info Table: Displays current trade status, averaging stages, total profit, number of wins, and maximum drawdown percentage in a table on the chart. Graphical Lines: Shows horizontal lines for entry price, take profit, and averaging prices to visually track trade management.
Pine Script® indicator
by propellerace
1
Q Impulse EntryQ Impulse Entry A directional entry system combining impulse breakouts, Elder's momentum confirmation, and ADX trend validation. Designed for clean trade setups with multi-step filtering, entry markers, and real-time alerts. 🔧 Core Logic This is not a basic mashup — each filter plays a distinct technical role: 1. Impulse Breakout Engine  • Detects sharp directional price breaks using ATR-adjusted dynamic zones  • Impulse window controls sensitivity to local highs/lows 2. Elder Momentum Filter  • Confirms signal using MACD histogram and EMA alignment  • Blocks entries when internal momentum contradicts price move 3. ADX Trend Strength Filter  • Uses threshold-based ADX logic to validate trend power  • Filters out noise in flat or weak markets The system requires all three filters to agree before confirming an entry. 📈 Visual Feedback • ⇑ / ⇓ arrows mark confirmed entry signals • Colored entry dots plotted at signal price help confirm timing and aid in multi-position layering • Impulse breakout zones and EMA are displayed for directional context • Clean layout, no repainting, designed for real-time use ⚙️ Configurable Inputs • Impulse Window — controls breakout signal sensitivity • ATR Multiplier — defines width of impulse breakout zones (Elder and ADX filters are embedded and fine-tuned) ✨ Highlights • Triple-filter signal logic = fewer false positives • Entry dots + arrows for visual clarity and scaling in • Lightweight, non-repainting, and alert-ready • Best suited for Forex and all timeframes • Ideal for breakout, trend-following, or hybrid systems • Built-in alerts and customizable zones • Always apply risk management suited to your capital and strategy Trade with clarity — stay for quality.
Pine Script® indicator
by Quantora
Al Brooks Second Entry**\ Al Brooks Second Entry Indicator\ ** This custom indicator helps identify second-entry setups based on Al Brooks' price action principles. The script marks key levels in trending markets, indicating potential long and short entries. It displays the first and second entry signals (H1, H2, L1, L2) as well as relevant pullback zones for added clarity. \ Features:\ \ \ \ First Entry Signals\ : H1 (Long) and L1 (Short) are marked when a trend begins to form. \ \ Second Entry Signals\ : H2 (Long) and L2 (Short) are plotted once the market pulls back and continues in the direction of the trend. \ \ EMA Filter\ : An Exponential Moving Average (EMA) is included to filter trades in the direction of the trend (longs above EMA, shorts below EMA). \ \ Pullback Zones\ : Highlighted areas to assist in identifying optimal zones for entry. \ \ Adjustable Label Sizes\ : Customize the appearance of the entry labels (tiny or small). \ \ Inputs:\ \ \ \ Show First/Second Entry\ : Control whether the first (H1, L1) and second (H2, L2) entry signals are displayed. \ \ EMA Length\ : Set the length of the EMA to use for trend direction. \ \ Label Size\ : Choose between tiny and small label sizes for clear chart visibility. \ \ Pullback Zones\ : Toggle the highlighting of pullback zones. \ \ How it Works:\ \ \ The indicator detects a trend direction using price action (new highs/lows, inside/outside bars). \ Once a trend is identified, it waits for a pullback and marks the first and second entry points (H1, H2, L1, L2). \ The indicator also plots the EMA to help confirm the overall market bias. \ Pullback zones are drawn to help spot potential areas of support or resistance. \ This script is ideal for traders looking to trade retracements in trending markets, providing clear entry signals and a visual representation of market structure.
Pine Script® indicator
by PriceActionTrader1
15
Pullback Entry Zone FinderPullback Entry Zone Finder Overview: This indicator is designed to help traders identify potential buying opportunities during short-term pullbacks, particularly when faster-moving averages show signs of converging back towards slower ones. It visually flags potential zones where price might find support and resume its upward movement, based on moving average dynamics and price proximity. How It Works: The indicator utilizes four customizable moving averages (Trigger, Short-term, Intermediate, and Long-term) and Average True Range (ATR) to pinpoint specific conditions: Pullback Detection: It identifies when the fast 'Trigger MA' is below the 'Short-term MA', indicating a potential short-term pullback or consolidation phase. MA Convergence: Crucially, it looks for signs that the pullback might be weakening by detecting when the gap between the Short-term MA and the Trigger MA is narrowing (maConverging). This suggests the faster average is starting to catch up, potentially preceding a move back up. Base Buy Zone (Orange Diamond): This signal appears when both the Pullback and Convergence conditions are met simultaneously. It indicates the general area where conditions are becoming favourable for a potential entry. Refined Entry Zones: Prime Entry Zone (Green Diamond): This appears within a Base Buy Zone if the bar's low comes within a specified percentage (Max Distance %) of the Short-term MA. It suggests price has pulled back close to the dynamic support of the Short MA. ATR Entry Zone (Purple Diamond): This appears within a Base Buy Zone if the bar's low comes within the specified percentage (Max Distance %) of an ATR-based target level. This target level (Buy ATR Target Level, plotted as a purple line when active) is calculated by adding a multiple (ATR Multiplier %) of the ATR to the Short-term MA, providing a volatility-adjusted potential entry area. Visual Elements: Moving Averages: Four lines representing the Trigger, Short-term, Intermediate, and Long-term MAs (colors and opacity are customizable). Use the Intermediate and Long-term MAs to gauge the broader market trend. Orange Diamond (Below Bar): Indicates a 'Base Buy Zone' where a pullback and MA convergence are detected. Green Diamond (Below Bar): Indicates a 'Prime Entry Zone' where price is close to the Short-term MA during a Base Buy Zone. Purple Diamond (Below Bar): Indicates an 'ATR Entry Zone' where price is close to the ATR-based target level during a Base Buy Zone. Purple Line: Plots the calculated 'Buy ATR Target Level' only when the Base Buy Zone condition is active. Input Parameters: Moving Averages: Customize the Length and Type (EMA, SMA, WMA, VWMA) for all four moving averages. ATR Settings: Adjust the ATR Length, the ATR Multiplier % (for calculating the target level), and the Max Distance % (for triggering the Prime and ATR Entry Zones). Visualization: Set the colors for the four Moving Average lines. How to Use: Look for the Orange Diamond as the initial signal that pullback/convergence conditions are met. The Green and Purple Diamonds suggest price has reached potentially more optimal entry levels within that zone, based on proximity to the Short MA or the ATR target, respectively. Always consider the signals within the context of the broader trend, indicated by the Intermediate and Long-term MAs. This indicator is generally more effective when used to find entries during pullbacks within an established uptrend (e.g., Intermediate MA > Long MA). Combine these signals with other forms of analysis, such as chart patterns, support/resistance levels, volume analysis, or other indicators for confirmation. Disclaimer: You should always use proper risk management techniques and conduct your own analysis before making any trading decisions. This indicator, or any other, will be of no use if you don't have good risk management.
Pine Script® indicator
by Ashishshetty86
Relative Risk MetricOVERVIEW The Relative Risk Metric is designed to provide a relative measure of an asset's price, within a specified range, over a log scale. PURPOSE Relative Position Assessment: Visualizes where the current price stands within a user-defined range, adjusted for log scale. Logarithmic Transformation: Utilizes the natural log to account for a log scale of prices, offering a more accurate representation of relative positions. Calculation: The indicator calculates a normalized value via the function Relative Price = / log(UpperBound) − log(LowerBound) . The result is a value between 0 and 1, where 0 corresponds to the lower bound and 1 corresponds to the upper bound on a log scale. VISUALIZATION The indicator plots three series: Risk Metric - a plot of the risk metric value that’s computed from an asset's relative price so that it lies within a logarithmic range between 0.0 & 1.0. Smoothed Risk Metric - a plot of the risk metric that’s been smoothed. Entry/Exit - a scatter plot for identified entry and exit. Values are expressed as percent and are coded as red being exit and green being entity. E.g., a red dot at 0.02 implies exit 2% of the held asset. A green dot at 0.01 implies use 1% of a designated capital reserve. USAGE Risk Metric The risk metric transformation function has several parameters. These control aspects such as decay, sensitivity, bounds and time offset. Decay - Acts as an exponent multiplier and controls how quickly dynamic bounds change as a function of the bar_index. Time Offset - provides a centering effect of the exponential transformation relative to the current bar_index. Sensitivity - controls how sensitive to time the dynamic bound adjustments should be. Baseline control - Serves as an additive offset for dynamic bounds computation which ensures that bounds never become too small or negative. UpperBound - provides headroom to accomodate growth an assets price from the baseline. For example, an upperbound of 3.5 accommodates a 3.5x growth from the baseline value (e.g., $100 -> $350). LowerBound - provides log scale compression such that the overall metric provides meaningful insights for prices well below the average whilst avoiding extreme scaling. A lowerbound of 0.25 corresponds to a price that is approx one quarter of a normalised baseline in a log context. Weighted Entry/Exit This feature provides a weighted system for identifying DCA entry and exit. This weighting mechanism adjusts the metric's interpretation to highlight conditions based on dynamic thresholds and user-defined parameters to identify high-probability zones for entry/exit actions and provide risk-adjusted insights. Weighting Parameters The weighting function supports fine-tuning of the computed weighted entry/exit values Base: determines the foundational multiplier for weighting the entry/exit value. A higher base amplifies the weighting effect, making the weighted values more pronounced. It acts as a scaling factor to control the overall magnitude of the weighting. Exponent: adjusts the curve of the weighting function. Higher exponent values increase sensitivity, emphasizing differences between risk metric values near the entry or exit thresholds. This creates a steeper gradient for the computed entry/exit value making it more responsive to subtle shifts in risk levels. Cut Off: specifies the maximum percentage (expressed as a fraction of 1.0) that the weighted entry/exit value can reach. This cap ensures the metric remains within a meaningful range and avoids skewing Exit condition: Defines a threshold for exit. When the risk metric is below the exit threshold (but above the entry threshold) then entry/exit is neutral. Entry condition: Defines a threshold for entry. When the risk metric is above the entry threshold (but below the exit threshold) then entry/exit is neutral. Weighting Behaviour For entry conditions - value is more heavily weighted as the metric approaches the entry threshold, emphasizing lower risk levels. For exit conditions - value is more heavily weighted as the metric nears the exit threshold, emphasizing increased risk levels. USE-CASES Identifying potential overbought or oversold conditions within the specified logarithmic range. Assisting in assessing how the current price compares to historical price levels on a logarithmic scale. Guiding decision-making processes by providing insights into the relative positioning of prices within a log context CONSIDERATIONS Validation: It's recommended that backtesting over historical data be done before acting on any identified entry/exit values. User Discretion: This indicator focus on price risk. Consider other risk factors and general market conditions as well.
Pine Script® indicator
by foosmoo
4