SMEMA Trend CoreSMEMA Trend Core is a multi-timeframe trend analysis tool designed to provide a clean, adaptive and structured view of the market’s directional bias. It can be used in short term, swing or long term contexts. The internal calculation adjusts automatically based on the selected trading style, while always combining data from six timeframes.
At its core, the indicator uses a SMEMA, which is a Simple Moving Average applied to an EMA. This combination improves smoothness without losing reactivity. The SMEMA is calculated separately on 1H, 4H, 1D, 3D, 1W and 1M timeframes. These six values are then combined using dynamic weights that depend on the trading mode:
Short Term mode gives more influence to 1H and 4H
Swing Trading mode gives more influence to 1D, 3D and 1W
Long Term mode gives more influence to 1W and 1M
However, all six timeframes are always included in the final result. This avoids the tunnel vision of relying on a single resolution and ensures that the indicator captures both local and structural movements.
The result is a synthetic trend line, called Global SMEMA, that adapts to market conditions and offers a realistic view of the ongoing trend. To enhance the reading, the indicator calculates a Trend Score. This score reflects the position of price relative to the Global SMEMA, scaled by a long-term ATR, and adjusted by the slope of the trend line. A hyperbolic tangent function is used to normalize values and reduce distortion from outliers.
The final score is capped between -10 and +10, and used to define the trend state:
Green when the trend is bullish (score > +1.5)
Red when the trend is bearish (score < -1.5)
Brown when the trend is neutral (score between -1.5 and +1.5)
Optional Deviation Bands can be displayed at ±1, ±2 and ±3 ATR distances around the central line. These dynamic zones help identify extended price movements or potential support and resistance areas, depending on the current trend bias.
Main features:
A single, stable trend line based on six timeframes
Automatic rebalancing depending on trading mode
Quantified score integrating distance and slope
No overreaction to short-term noise
Deviation zones for advanced market context
No repainting, no lookahead, 100% real-time
SMEMA Trend Core is not a signal tool. It is a directional framework that helps you stay aligned with the real structure of the market. Use it to confirm setups, filter trades or simply understand where the market stands in its trend cycle.
Search in scripts for "swing trading"
4H & 1D Sig_chartbugRohmoohyun is alive
Auxiliary Indicator for Buy/Sell Signals Using Bollinger Bands and Moving Averages.
Recommended for NASDAQ, Gold, Oil, BTC, Stocks on 4-hour or higher timeframes.
For Ethereum, Ripple, and other volatile altcoins, it is advisable to also check the daily chart.
Indicator Idea: This strategy utilizes two types of indicators: Bollinger Bands as a volatility (or momentum) indicator, and Moving Averages as a trend indicator. A triangle signal is generated in zones where the Bollinger Bands converge (squeeze). After a candle closes, a Rocket icon will appear, at which point a trading strategy can be devised based on the prevailing trend indicated by the Moving Averages.
Indicator Feature: When used on timeframes of 4 hours or higher, this indicator is extremely powerful for establishing trading criteria, especially when combined with trend analysis and support/resistance zones.
Basic Trading Method: Enter a position at the Rocket icon + Immediately set a stop-loss (e.g., at the previous low/high, a maximum loss threshold like 2% of capital, or at a level planned for a second entry to average down) + Take partial profit (e.g., 50%) at your desired TP level, then move the stop-loss to your entry price (break-even) and hold the remainder of the position.
Recommended Timeframes: 5-minute, 4-hour, 1-day.
Trading Strategy
Pullback Trading / Trend Reversal Trading.
Instrument Selection (Commodities & Indices, Crypto, NASDAQ-listed Stocks).
Understand Instrument Characteristics (The three categories behave differently, so backtesting before use is essential).
a) Bullish Alignment (Price > 20MA > 200MA)
: Focus primarily on long (buy) positions.
: If attempting a counter-trend (short) trade, do so only with multiple confirmations, such as RSI/Disparity divergence and a major resistance zone. Use a tight stop-loss.
b) Bearish Alignment (Price < 20MA < 200MA)
: The opposite of the above; focus on short (sell) positions.
c) During a Bullish Trend, Price is Between MAs (200MA < Price < 20MA)
: This indicates either a consolidation phase within an uptrend or a potential early sign of a reversal to a downtrend. Consider both possibilities.
: A possible approach is to allocate capital with a 60% bias to long positions and a 40% bias to short positions (unlike in full bullish/bearish alignments where counter-trend trading has a poor risk/reward ratio).
: If it turns out to be a reversal point, you can enter a position at the very beginning of a new trend, allowing for a longer ride.
: It's recommended to take partial profits rather than closing the entire position. For instance, close half and move the stop-loss to your entry price to eliminate risk while keeping profit potential open.
d) During a Bearish Trend, Price is Between MAs (200MA > Price > 20MA)
: The opposite of the above.
Instrument-Specific Characteristics
Commodities & Indices (NASDAQ, Oil, Gold)
: The indicator was primarily developed and tested on NASDAQ and Gold, so it tends to work well with them.
: However, NASDAQ often exhibits strong, one-way trends, so a trend-following approach is highly recommended.
: Gold and Oil tend to have significant reversals from key support/resistance zones.
Crypto
: These assets are extremely volatile, so use this indicator with caution and skill.
: It performs reasonably well with BTC. For anything from Ethereum downwards, the price action can be chaotic, so it's crucial to use the daily chart and other confirming factors.
: Instead of frequent day trading, focus on long-term positions, reduce the number of trades, and aim for entries with a good average price.
NASDAQ-listed Stocks
: Recommended for a long-term, accumulation-style investment approach.
: Use the indicator not as a signal that "it will pump immediately!" but rather as a sign that "this is a decent entry point to build a position."
: Alternatively, it can be used for more active swing trading (buy, sell, repeat).
Important Disclaimers
This is an auxiliary indicator, as the name implies. Do not trust it blindly.
When entering a position, immediately set your stop-loss or have a plan for a single additional entry (max one recommended).
Always use it in conjunction with other forms of analysis.
Track your performance (win rate, risk/reward ratio) based on this strategy.
Continuously refine and improve your approach.
Choppiness ZONE OverlayPurpose
This script overlays choppiness zones directly onto the price chart to help traders identify whether the market is trending or ranging. It is designed to filter out low-probability trades during high choppiness conditions.
How It Works
Calculates the Choppiness Index over a user-defined period using ATR and price range.
Divides choppiness into four zones:
30 to 40: Low choppiness, possible trend initiation, shown in yellow.
40 to 50: Moderate choppiness, transition zone, shown in orange.
50 to 60: High choppiness, weakening momentum, shown in red.
60 and above: Extreme choppiness, avoid trading, shown in purple.
Highlights each zone with customizable color fills between the high and low of the selected range.
Triggers a real-time alert when choppiness exceeds 60.
Features
Customizable choppiness zones and color settings.
Real-time alert when market becomes extremely choppy (choppiness ≥ 60).
Visual zone overlay on the price chart.
Compatible with all timeframes.
Lightweight and responsive for scalping, intraday, or swing trading.
Tip
Use this tool as a volatility or trend filter. Combine it with momentum or trend-following indicators to improve trade selection.
Information Asymmetry Gradient (IAG) What is the Information Asymmetry Gradient (IAG)?
The Information Asymmetry Gradient (IAG) is a unique market regime and imbalance detector that quantifies the subtle, directional “information flow” in price and volume. Inspired by information theory and market microstructure, IAG is designed to help traders spot the early buildup of conviction or surprise—the kind of hidden imbalance that often precedes major price moves.
Unlike traditional volume or momentum indicators, IAG focuses on the efficiency and directionality of information transfer: how much “informational energy” is being revealed by up-moves versus down-moves, normalized by price movement. It’s not just about net flow, but about the quality and asymmetry of that flow.
Theoretical Foundation
Information Asymmetry: Markets move when new information is revealed. If one side (buyers or sellers) is consistently more “informationally efficient” per unit of price change, an imbalance is building—even if price hasn’t moved much yet.
Gradient: By tracking the rate of change (gradient) between fast and slow information flows, IAG highlights when a subtle imbalance is accelerating.
Volatility of Asymmetry: Sudden spikes in the volatility of information asymmetry often signal regime uncertainty or the approach of a “surprise” move.
How IAG Works
Directional Information Content: For each bar, IAG estimates the “information per unit of price change” for both up-moves and down-moves, using volume and price action.
Asymmetry Calculation: Computes the difference (or ratio) between up and down information content, revealing directional bias.
Gradient Detection: Calculates both a fast and slow EMA of the asymmetry, then measures their difference (the “gradient”), normalized as a Z-score.
Volatility of Asymmetry: Tracks the standard deviation of asymmetry over a rolling window, with Z-score normalization to spot “information shocks.”
Flow Strength: Quantifies the conviction of the current information flow on a 0–100 scale.
Regime Detection: Flags “extreme” asymmetry, “building” flow, and “high volatility” states.
Inputs:
🌌 Core Asymmetry Parameters
Fast Information Period (short_len, default 8): EMA period for detecting immediate information flow changes.
5–8: Scalping (1–5min)
8–12: Day trading (15min–1hr)
12–20: Swing trading (4hr+)
Slow Information Period (long_len, default 34): EMA period for baseline information context. Should be 3–5x fast period.
Default (34): Fibonacci number, stable for most assets.
Gradient Smoothing (gradient_smooth, default 3): Smooths the gradient calculation.
1–2: Raw, responsive
3–5: Balanced
6–10: Very smooth
📊 Asymmetry Method
Calculation Mode (calc_mode, default "Weighted"):
“Simple”: Basic volume split by direction
“Weighted”: Volume × price movement (default, most robust)
“Logarithmic”: Log-scaled for large moves
Use Ratio (show_ratio, default false):
“Difference”: UpInfo – DownInfo (additive)
“Ratio”: UpInfo / DownInfo (multiplicative, better for comparing volatility regimes)
🌊 Volatility Analysis
Volatility Window (stdev_len, default 21): Lookback for measuring asymmetry volatility.
Volatility Alert Level (vol_threshold, default 1.5): Z-score threshold for volatility alerts.
🎨 Visual Settings
Color Theme (color_theme, default "Starry Night"):
Van Gogh-inspired palettes:
“Starry Night”: Deep blues and yellows
“Sunflowers”: Warm yellows and browns
“Café Terrace”: Night blues and warm lights
“Wheat Field”: Golden and sky blue
Show Swirl Effects (show_swirls, default true): Adds swirling background to visualize information turbulence.
Show Signal Stars (show_stars, default true): Star markers at significant asymmetry points.
Show Info Dashboard (show_dashboard, default true): Top-right panel with current metrics and market state.
Show Flow Visualization (show_flow, default true): Main gradient line with artistic effects.
Color Schemes
Dynamic color gradients adapt to both the direction and intensity of the information gradient, using Van Gogh-inspired palettes for visual clarity and artistic flair.
Glow and aura effects: The main line is layered with glows for depth and to highlight strong signals.
Swirl background: Visualizes the “turbulence” of information flow, darker and more intense as flow strength and volatility rise.
Visual Logic
Main Gradient Line: Plots the normalized information gradient (Z-score), color-coded by direction and intensity.
Glow/Aura: Multiple layers for visual depth and to highlight strong signals.
Threshold Zones: Dotted lines and filled areas mark “Building” and “Extreme” asymmetry zones.
Volatility Ribbon: Area plot of volatility Z-score, highlighting information shocks.
Signal Stars: Circular markers at each “Extreme” event, color-coded for bullish/bearish; cross markers for volatility spikes.
Dashboard: Top-right panel shows current status (Extreme, Building, High Volatility, Balanced), gradient value, flow strength, information balance, and volatility status.
Trading Guide: Bottom-left panel explains all states and how to interpret them.
How to Use IAG
🌟 EXTREME: Major information imbalance—potential for explosive move or reversal.
🌙 BUILDING: Asymmetry is forming—watch for a breakout or trend acceleration.
🌪️ HIGH VOLATILITY: Information flow is unstable—expect regime uncertainty or “surprise” moves.
☁️ BALANCED: No clear bias—market is in equilibrium.
Positive Gradient: Bullish information flow (buyers have the edge).
Negative Gradient: Bearish information flow (sellers have the edge).
Flow >66%: Strong conviction—crowd is acting in unison.
Volatility Spike: Regime uncertainty—be alert for sudden moves.
Tips:
- Use lower periods for scalping, higher for swing trading.
- “Weighted” mode is most robust for most assets.
- Combine with price action or your own system for confirmation.
- Works on all assets and timeframes—tune to your style.
Alerts
IAG Extreme Asymmetry: Extreme information asymmetry detected.
IAG Building Flow: Information flow building.
IAG High Volatility: Information volatility spike.
IAG Bullish/Bearish Extreme: Directional extreme detected.
Originality & Usefulness
IAG is not a mashup of existing indicators. It is a novel approach to quantifying the “surprise” or “conviction” element in market moves, focusing on the efficiency and directionality of information transfer per unit of price change. The multi-layered color logic, artistic visual effects, and regime dashboard are unique to this script. IAG is designed for anticipation, not confirmation—helping you see subtle imbalances before they become obvious in price.
Chart Info
Script Name: Information Asymmetry Gradient (IAG) – Starry Night
Recommended Use: Any asset, any timeframe. Tune parameters to your style.
Disclaimer
This script is for research and educational purposes only. It does not provide financial advice or direct buy/sell signals. Always use proper risk management and combine with your own strategy. Past performance is not indicative of future results.
Trade with insight. Trade with anticipation.
— Dskyz , for DAFE Trading Systems
SimpleBiasSimpleBias - Multi-Timeframe Bias Analysis Indicator
Overview
SimpleBias is a comprehensive multi-timeframe bias analysis indicator designed to help traders make informed trading decisions by displaying market bias across multiple timeframes in a clean, organized table format.
Key Features
Multi-Timeframe Analysis
8 Timeframes Supported : 1M, 1W, 1D, 4H, 1H, 15m, 5m, 1m
Adaptive Display : Shows only relevant timeframes based on current chart timeframe
Real-time Bias Detection : Compares current open price with previous period's open price
Signal Generation
Day Trading Mode : Ideal for 15-minute timeframe analysis
Scalping Mode : Optimized for 5-minute timeframe trading
Signal OFF : Pure bias analysis without trade signals
Customization Options
Theme Support : Light mode and dark mode with automatic color adaptation
Position Control : Table can be positioned at top-right, middle-right, or bottom-right
Size Options : Tiny, small, or normal text size
Color Customization : Full control over bias colors, signal colors, and interface elements
Transparency : Optional transparent background for cleaner chart appearance
How It Works
Bias Calculation
The indicator determines market bias by comparing the current timeframe's open price with the previous period's open price:
BULLISH : Current open > Previous open
BEARISH : Current open < Previous open
NEUTRAL : Current open = Previous open
Adaptive Timeframe Display
The indicator intelligently shows only relevant timeframes based on your current chart:
On 1M chart: Shows 1M bias only
On 1W chart: Shows 1M, 1W bias
On 1D chart: Shows 1M, 1W, 1D bias
And so on...
Signal Logic
Day Trading : Compares current price with 4H open price
Scalping : Compares current price with 1H open price
Usage Instructions
Add to Chart : Apply the indicator to any timeframe chart
Configure Settings :
- Choose table position and text size
- Select signal mode (OFF/Day Trade/Scalping)
- Customize colors and theme
Interpret Results :
- Green/Blue text = Bullish bias
- Red text = Bearish bias
- Gray text = Neutral bias
Customization Guide
Theme Settings
Light Mode : Traditional white background with dark text
Dark Mode : Dark background with light text, optimized for dark charts
Transparent Background : Clean overlay without background color
Color Schemes
Bias Colors : Separate customization for bullish, bearish, and neutral bias
Signal Colors : Distinct colors for buy, sell, and neutral signals
Interface : Control table background and border colors
Best Practices
For Day Trading
Use 15-minute or 1-hour charts
Enable "Day Trade" signal mode
Focus on 4H and higher timeframe bias alignment
For Scalping
Use 5-minute charts
Enable "Scalping" signal mode
Watch for 1H and 4H bias alignment
For Swing Trading
Use 4H or daily charts
Keep signal mode OFF
Focus on weekly and monthly bias alignment
Important Notes
This indicator is for educational and analysis purposes only
Not financial advice - always do your own research
Past performance does not guarantee future results
Risk management is essential in all trading activities
Technical Specifications
Pine Script Version : v6
Overlay : True (displays on price chart)
Performance : Optimized with cached security requests
Compatibility : Works on all TradingView timeframes and instruments
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SimpleBias - Indikator Analisis Bias Multi-Timeframe
Gambaran Umum
SimpleBias adalah indikator analisis bias multi-timeframe yang komprehensif, dirancang untuk membantu trader membuat keputusan trading yang tepat dengan menampilkan bias pasar di berbagai timeframe dalam format tabel yang bersih dan terorganisir.
Fitur Utama
Analisis Multi-Timeframe
8 Timeframe Didukung : 1M, 1W, 1D, 4H, 1H, 15m, 5m, 1m
Tampilan Adaptif : Hanya menampilkan timeframe yang relevan berdasarkan timeframe chart saat ini
Deteksi Bias Real-time : Membandingkan harga open saat ini dengan harga open periode sebelumnya
Mode Sinyal Trading
Mode Day Trading : Ideal untuk analisis timeframe 15 menit
Mode Scalping : Dioptimalkan untuk trading timeframe 5 menit
Mode OFF : Analisis bias murni tanpa sinyal trading
Opsi Kustomisasi
Dukungan Theme : Mode terang dan gelap dengan adaptasi warna otomatis
Kontrol Posisi : Tabel dapat diposisikan di kanan-atas, kanan-tengah, atau kanan-bawah
Opsi Ukuran : Ukuran teks kecil, sedang, atau normal
Kustomisasi Warna : Kontrol penuh atas warna bias, warna sinyal, dan elemen interface
Transparansi : Background transparan opsional untuk chart yang lebih bersih
Cara Kerja
Perhitungan Bias
Indikator menentukan bias pasar dengan membandingkan harga open timeframe saat ini dengan harga open periode sebelumnya:
BULLISH : Open saat ini > Open sebelumnya
BEARISH : Open saat ini < Open sebelumnya
NEUTRAL : Open saat ini = Open sebelumnya
Petunjuk Penggunaan
Tambahkan ke Chart : Terapkan indikator ke chart timeframe apapun
Konfigurasi Settings :
- Pilih posisi tabel dan ukuran teks
- Pilih mode sinyal (OFF/Day Trade/Scalping)
- Sesuaikan warna dan theme
Interpretasi Hasil :
- Teks hijau/biru = Bias bullish
- Teks merah = Bias bearish
- Teks abu-abu = Bias neutral
Best Practices
Untuk Day Trading
Gunakan chart 15 menit atau 1 jam
Aktifkan mode sinyal "Day Trade"
Fokus pada alignment bias timeframe 4H ke atas
Untuk Scalping
Gunakan chart 5 menit
Aktifkan mode sinyal "Scalping"
Perhatikan alignment bias 1H dan 4H
Catatan Penting
Indikator ini hanya untuk tujuan edukasi dan analisis
Bukan nasihat keuangan - selalu lakukan riset sendiri
Performa masa lalu tidak menjamin hasil masa depan
Manajemen risiko sangat penting dalam semua aktivitas trading
SimpleBias membantu trader mempertahankan kesadaran terhadap bias pasar di berbagai timeframe, mendukung timing dan pengambilan keputusan yang lebih baik dalam strategi trading mereka.
(Mustang Algo) Stochastic RSI + Triple EMAStochastic RSI + Triple EMA (StochTEMA)
Overview
The Stochastic RSI + Triple EMA indicator combines the Stochastic RSI oscillator with a Triple Exponential Moving Average (TEMA) overlay to generate clear buy and sell signals on the price chart. By measuring RSI overbought/oversold conditions and confirming trend direction with TEMA, this tool helps traders identify high-probability entries and exits while filtering out noise in choppy markets.
Key Features
Stochastic RSI Calculation
Computes a standard RSI over a user-defined period (default 50).
Applies a Stochastic oscillator to the RSI values over a second user-defined period (default 50).
Smooths the %K line by taking an SMA over a third input (default 3), and %D is an SMA of %K over another input (default 3).
Defines oversold when both %K and %D are below 20, and overbought when both are above 80.
Triple EMA (TEMA)
Calculates three successive EMAs on the closing price with the same length (default 9).
Combines them using TEMA = 3×(EMA1 – EMA2) + EMA3, producing a fast-reacting trend line.
Bullish trend is identified when price > TEMA and TEMA is rising; bearish trend when price < TEMA and TEMA is falling; neutral/flat when TEMA change is minimal.
Signal Logic
Strong Buy: Previous bar’s Stoch RSI was oversold (both %K and %D < 20), %K crosses above %D, and TEMA is in a bullish trend.
Medium Buy: %K crosses above %D (without requiring oversold), TEMA is bullish, and previous %K < 50.
Weak Buy: Previous bar’s %K and %D were oversold, %K crosses above %D, TEMA is flat or bullish (not bearish).
Strong Sell: Previous bar’s Stoch RSI was overbought (both %K and %D > 80), %K crosses below %D, and TEMA is bearish.
Medium Sell: %K crosses below %D (without requiring overbought), TEMA is bearish, and previous %K > 50.
Weak Sell: Previous bar’s %K and %D were overbought, %K crosses below %D, TEMA is flat or bearish (not bullish).
Visual Elements on Chart
TEMA Line: Plotted in cyan (#00BCD4) with a medium-thick line for clear trend visualization.
Buy/Sell Markers:
BUY STRONG: Lime label below the candle
BUY MEDIUM: Green triangle below the candle
BUY WEAK: Semi-transparent green circle below the candle
SELL STRONG: Red label above the candle
SELL MEDIUM: Orange triangle above the candle
SELL WEAK: Semi-transparent orange circle above the candle
Candle & Background Coloring: When a strong buy or sell signal occurs, the candle body is tinted (semi-transparent lime/red) and the chart background briefly flashes light green (buy) or light red (sell).
Dynamic Support/Resistance:
On a strong buy signal, a green dot is plotted under that bar’s low as a temporary support marker.
On a strong sell signal, a red dot is plotted above that bar’s high as a temporary resistance marker.
Alerts
Strong Buy Alert: Triggered when Stoch RSI is oversold, %K crosses above %D, and TEMA is bullish.
Strong Sell Alert: Triggered when Stoch RSI is overbought, %K crosses below %D, and TEMA is bearish.
General Buy Alert: Triggered on any bullish crossover (%K > %D) when TEMA is not bearish.
General Sell Alert: Triggered on any bearish crossover (%K < %D) when TEMA is not bullish.
Inputs
Stochastic RSI Settings (group “Stochastic RSI”):
K (smoothK): Period length for smoothing the %K line (default 3, minimum 1)
D (smoothD): Period length for smoothing the %D line (default 3, minimum 1)
RSI Length (lengthRSI): Number of bars used for the RSI calculation (default 50, minimum 1)
Stochastic Length (lengthStoch): Number of bars for the Stochastic oscillator applied to RSI (default 50, minimum 1)
RSI Source (src): Price source for the RSI (default = close)
TEMA Settings (group “Triple EMA”):
TEMA Length (lengthTEMA): Number of bars used for each of the three EMAs (default 9, minimum 1)
How to Use
Add the Script
Copy and paste the indicator code into TradingView’s Pine Editor (version 6).
Save the script and add it to your chart as “Stochastic RSI + Triple EMA (StochTEMA).”
Adjust Inputs
Choose shorter lengths for lower timeframes (e.g., intraday scalping) and longer lengths for higher timeframes (e.g., swing trading).
Fine-tune the Stochastic RSI parameters (K, D, RSI Length, Stochastic Length) to suit the volatility of the instrument.
Modify TEMA Length if you prefer a faster or slower moving average response.
Interpret Signals
Primary Entries/Exits: Focus on “BUY STRONG” and “SELL STRONG” signals, as they require both oversold/overbought conditions and a confirming TEMA trend.
Confirmation Signals: Use “BUY MEDIUM”/“BUY WEAK” to confirm or add to an existing position when the market is trending. Similarly, “SELL MEDIUM”/“SELL WEAK” can be used to scale out or confirm bearish momentum.
Support/Resistance Dots: These help identify recent swing lows (green dots) and swing highs (red dots) that were tagged by strong signals—useful to place stop-loss or profit-target orders.
Set Alerts
Open the Alerts menu (bell icon) in TradingView, choose this script, and select the desired alert condition (e.g., “BUY Signal Strong”).
Configure notifications (popup, email, webhook) according to your trading workflow.
Notes & Best Practices
Filtering False Signals: By combining Stoch RSI crossovers with TEMA trend confirmation, most false breakouts during choppy price action are filtered out.
Timeframe Selection: This indicator works on all timeframes, but shorter timeframes may generate frequent signals—consider higher-timeframe confirmation when trading lower timeframes.
Risk Management: Always use proper position sizing and stop-loss placement. An “oversold” or “overbought” reading can remain extended for some time in strong trends.
Backtesting/Optimization: Before live trading, backtest different parameter combinations on historical data to find the optimal balance between sensitivity and reliability for your chosen instrument.
No Guarantee of Profits: As with any technical indicator, past performance does not guarantee future results. Use in conjunction with other forms of analysis (volume, price patterns, fundamentals).
Author: Your Name or Username
Version: 1.0 (Pine Script v6)
Published: June 2025
Feel free to customize input values and visual preferences. If you find bugs or have suggestions for improvements, open an issue or leave a comment below. Trade responsibly!
Levels Of Interest------------------------------------------------------------------------------------
LEVELS OF INTEREST (LOI)
TRADING INDICATOR GUIDE
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Table of Contents:
1. Indicator Overview & Core Functionality
2. VWAP Foundation & Historical Context
3. Multi-Timeframe VWAP Analysis
4. Moving Average Integration System
5. Trend Direction Signal Detection
6. Visual Design & Display Features
7. Custom Level Integration
8. Repaint Protection Technology
9. Practical Trading Applications
10. Setup & Configuration Recommendations
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1. INDICATOR OVERVIEW & CORE FUNCTIONALITY
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The LOI indicator combines multiple VWAP calculations with moving averages across different timeframes. It's designed to show where institutional money is flowing and help identify key support and resistance levels that actually matter in today's markets.
Primary Functions:
- Multi-timeframe VWAP analysis (Daily, Weekly, Monthly, Yearly)
- Advanced moving average integration (EMA, SMA, HMA)
- Real-time trend direction detection
- Institutional flow analysis
- Dynamic support/resistance identification
Target Users: Day traders, swing traders, position traders, and institutional analysts seeking comprehensive market structure analysis.
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2. VWAP FOUNDATION & HISTORICAL CONTEXT
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Historical Development: VWAP started in the 1980s when big institutional traders needed a way to measure if they were getting good fills on their massive orders. Unlike regular price averages, VWAP weighs each price by the volume traded at that level. This makes it incredibly useful because it shows you where most of the real money changed hands.
Mathematical Foundation: The basic math is simple: you take each price, multiply it by the volume at that price, add them all up, then divide by total volume. What you get is the true "average" price that reflects actual trading activity, not just random price movements.
Formula: VWAP = Σ(Price × Volume) / Σ(Volume)
Where typical price = (High + Low + Close) / 3
Institutional Behavior Patterns:
- When price trades above VWAP, institutions often look to sell
- When it's below, they're usually buying
- Creates natural support and resistance that you can actually trade against
- Serves as benchmark for execution quality assessment
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3. MULTI-TIMEFRAME VWAP ANALYSIS
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Core Innovation: Here's where LOI gets interesting. Instead of just showing daily VWAP like most indicators, it displays four different timeframes simultaneously:
**Daily VWAP Implementation**:
- Resets every morning at market open
- Provides clearest picture of intraday institutional sentiment
- Primary tool for day trading strategies
- Most responsive to immediate market conditions
**Weekly VWAP System**:
- Resets each Monday (or first trading day)
- Smooths out daily noise and volatility
- Perfect for swing trades lasting several days to weeks
- Captures weekly institutional positioning
**Monthly VWAP Analysis**:
- Resets at beginning of each calendar month
- Captures bigger institutional rebalancing at month-end
- Fund managers often operate on monthly mandates
- Significant weight in intermediate-term analysis
**Yearly VWAP Perspective**:
- Resets annually for full-year institutional view
- Shows long-term institutional positioning
- Where pension funds and sovereign wealth funds operate
- Critical for major trend identification
Confluence Zone Theory: The magic happens when multiple VWAP levels cluster together. These confluence zones often become major turning points because different types of institutional money all see value at the same price.
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4. MOVING AVERAGE INTEGRATION SYSTEM
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Multi-Type Implementation: The indicator includes three types of moving averages, each with its own personality and application:
**Exponential Moving Averages (EMAs)**:
- React quickly to recent price changes
- Displayed as solid lines for easy identification
- Optimal performance in trending market conditions
- Higher sensitivity to current price action
**Simple Moving Averages (SMAs)**:
- Treat all historical data points equally
- Appear as dashed lines in visual display
- Slower response but more reliable in choppy conditions
- Traditional approach favored by institutional traders
**Hull Moving Averages (HMAs)**:
- Newest addition to the system (dotted line display)
- Created by Alan Hull in 2005
- Solves classic moving average dilemma: speed vs. accuracy
- Manages to be both responsive and smooth simultaneously
Technical Innovation: Alan Hull's solution addresses the fundamental problem where moving averages are either too slow (missing moves) or too fast (generating false signals). HMAs achieve optimal balance through weighted calculation methodology.
Period Configuration:
- 5-period: Short-term momentum assessment
- 50-period: Intermediate trend identification
- 200-period: Long-term directional confirmation
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5. TREND DIRECTION SIGNAL DETECTION
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Real-Time Momentum Analysis: One of LOI's best features is its real-time trend detection system. Next to each moving average, visual symbols provide immediate trend assessment:
Symbol System:
- ▲ Rising average (bullish momentum confirmation)
- ▼ Falling average (bearish momentum indication)
- ► Flat average (consolidation or indecision period)
Update Frequency: These signals update in real-time with each new price tick and function across all configured timeframes. Traders can quickly scan daily and weekly trends to assess alignment or conflicting signals.
Multi-Timeframe Trend Analysis:
- Simultaneous daily and weekly trend comparison
- Immediate identification of trend alignment
- Early warning system for potential reversals
- Momentum confirmation for entry decisions
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6. VISUAL DESIGN & DISPLAY FEATURES
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Color Psychology Framework: The color scheme isn't random but based on psychological associations and trading conventions:
- **Blue Tones**: Institutional neutrality (VWAP levels)
- **Green Spectrum**: Growth and stability (weekly timeframes)
- **Purple Range**: Longer-term sophistication (monthly analysis)
- **Orange Hues**: Importance and attention (yearly perspective)
- **Red Tones**: User-defined significance (custom levels)
Adaptive Display Technology: The indicator automatically adjusts decimal places based on the instrument you're trading. High-priced stocks show 2 decimals, while penny stocks might show 8. This keeps the display incredibly clean regardless of what you're analyzing - no cluttered charts or overwhelming information overload.
Smart Labeling System: Advanced positioning algorithm automatically spaces all elements to prevent overlap, even during extreme zoom levels or multiple timeframe analysis. Every level stays clearly readable without any visual chaos disrupting your analysis.
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7. CUSTOM LEVEL INTEGRATION
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User-Defined Level System: Beyond the calculated VWAP and moving average levels, traders can add custom horizontal lines at any price point for personalized analysis.
Strategic Applications:
- **Psychological Levels**: Round numbers, previous significant highs/lows
- **Technical Levels**: Fibonacci retracements, pivot points
- **Fundamental Targets**: Analyst price targets, earnings estimates
- **Risk Management**: Stop-loss and take-profit zones
Integration Features:
- Seamless incorporation with smart labeling system
- Custom color selection for visual organization
- Extension capabilities across all chart timeframes
- Maintains display clarity with existing indicators
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8. REPAINT PROTECTION TECHNOLOGY
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Critical Trading Feature: This addresses one of the most significant issues in live trading applications. Most multi-timeframe indicators "repaint," meaning they display different signals when viewing historical data versus real-time analysis.
Protection Benefits:
- Ensures every displayed signal could have been traded when it appeared
- Eliminates discrepancies between historical and live analysis
- Provides realistic performance expectations
- Maintains signal integrity across chart refreshes
Configuration Options:
- **Protection Enabled**: Default setting for live trading
- **Protection Disabled**: Available for backtesting analysis
- User-selectable toggle based on analysis requirements
- Applies to all multi-timeframe calculations
Implementation Note: With protection enabled, signals may appear one bar later than without protection, but this ensures all signals represent actionable opportunities that could have been executed in real-time market conditions.
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9. PRACTICAL TRADING APPLICATIONS
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**Day Trading Strategy**:
Focus on daily VWAP with 5-period moving averages. Look for bounces off VWAP or breaks through it with volume. Short-term momentum signals provide entry and exit timing.
**Swing Trading Approach**:
Weekly VWAP becomes your primary anchor point, with 50-period averages showing intermediate trends. Position sizing based on weekly VWAP distance.
**Position Trading Method**:
Monthly and yearly VWAP provide broad market context, while 200-period averages confirm long-term directional bias. Suitable for multi-week to multi-month holdings.
**Multi-Timeframe Confluence Strategy**:
The highest-probability setups occur when daily, weekly, and monthly VWAPs cluster together, especially when multiple moving averages confirm the same direction. These represent institutional consensus zones.
Risk Management Integration:
- VWAP levels serve as dynamic stop-loss references
- Multiple timeframe confirmation reduces false signals
- Institutional flow analysis improves position sizing decisions
- Trend direction signals optimize entry and exit timing
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10. SETUP & CONFIGURATION RECOMMENDATIONS
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Initial Configuration: Start with default settings and adjust based on individual trading style and market focus. Short-term traders should emphasize daily and weekly timeframes, while longer-term investors benefit from monthly and yearly level analysis.
Transparency Optimization: The transparency settings allow clear price action visibility while maintaining level reference points. Most traders find 70-80% transparency optimal - it provides a clean, unobstructed view of price movement while maintaining all critical reference levels needed for analysis.
Integration Strategy: Remember that no indicator functions effectively in isolation. LOI provides excellent context for institutional flow and trend direction analysis, but should be combined with complementary analysis tools for optimal results.
Performance Considerations:
- Multiple timeframe calculations may impact chart loading speed
- Adjust displayed timeframes based on trading frequency
- Customize color schemes for different market sessions
- Regular review and adjustment of custom levels
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FINAL ANALYSIS
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Competitive Advantage: What makes LOI different is its focus on where real money actually trades. By combining volume-weighted calculations with multiple timeframes and trend detection, it cuts through market noise to show you what institutions are really doing.
Key Success Factor: Understanding that different timeframes serve different purposes is essential. Use them together to build a complete picture of market structure, then execute trades accordingly.
The integration of institutional flow analysis with technical trend detection creates a comprehensive trading tool that addresses both short-term tactical decisions and longer-term strategic positioning.
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END OF DOCUMENTATION
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EMA 200 Monitor - Bybit CoinsEMA 200 Monitor - Bybit Coins
📊 OVERVIEW
The EMA 200 Monitor - Bybit Coins is an advanced indicator that automatically monitors 30 of the top cryptocurrencies traded on Bybit, alerting you when they are close to the 200-period Exponential Moving Average on the 4-hour timeframe.
This indicator was developed especially for traders who use the EMA 200 as a key support/resistance level in their swing trading and position trading strategies.
🎯 WHAT IT'S FOR
Multi-Asset Monitoring: Simultaneous monitoring of 30 cryptocurrencies without having to switch between charts
Opportunity Identification: Detects when coins are approaching the 200 EMA, a crucial technical level
Automated Alerts: Real-time notifications when a coin reaches the configured proximity
Time Efficiency: Eliminates the need to manually check chart collections
⚙️ HOW IT WORKS
Main Functionality
The indicator uses the request.security() function to fetch price data and calculate the 200 EMA of each monitored asset. With each new bar, the script:
Calculates the distance between the current price and the 200 EMA for each coin
Identifies proximity based on the configured percentage (default: 2%)
Displays results in a table organized on the chart
Generates automatic alerts when proximity is detected
Monitored Coins
Major : BTC, ETH, BNB, ADA, XRP, SOL, DOT, DOGE, AVAX
DeFi : UNI, LINK, ATOM, ICP, NEAR, OP, ARB, INJ
Memecoins : SHIB, PEPE, WIF, BONK, FLOKI
Emerging : SUI, TON, APT, POL (ex-MATIC)
📋 AVAILABLE SETTINGS
Adjustable Parameters
EMA Length (Default: 200): Exponential Moving Average Period
Proximity Percentage (Default: 2%): Distance in percentage to consider "close"
Show Table (Default: Active): Show/hide results table
Table Position: Position of the table on the chart (9 options available)
Color System
🔴 Red: Distance ≤ 1% (very close)
🟠 Orange: Distance ≤ 1.5% (close)
🟡 Yellow: Distance ≤ 2% (approaching)
🚀 HOW TO USE
Initial Configuration
Add the indicator to the 4-hour timeframe chart
Set the parameters according to your strategy
Position the table where there is no graphic preference
Setting Alerts
Click "Create Alert" in TradingView
Select the "EMA 200 Monitor" indicator
Set the notification frequency and method
Activate the alert to receive automatic notifications
Results Interpretation
The table shows:
Coin: Asset name (e.g. BTC, ETH)
Price: Current currency quote
EMA 200: Current value of the moving average
Distance: Percentage of proximity to the core code
💡 STRATEGIES TO USE
Reversal Trading
Entry: When price touches or approaches the EMA 200
Stop: Below/above the EMA with a safety margin
Target: Previous resistance/support levels
Breakout Trading
Monitoring: Watch for currencies consolidating near the EMA 200
Entry: When the media is finally broken
Confirmation: Volume and close above/below the EMA
Swing Trading
Identification: Use the monitor to detect setups in formation
Timing: Wait for the EMA 200 to approach for detailed analysis
Management: Use the EMA as a reference for stops dynamics
⚠️ IMPORTANT CONSIDERATIONS
Technical Limitations
Request Bybit data: Access to exchange symbols required
Specific timeframe: Optimized for 4-hour analysis
Minimum delay: Data updated with each new bar
Usage Recommendations
Combine with technical analysis: Use together with other indicators
Confirm the configuration: Check the graphic patterns before trading
Manage risk: Always use stop loss and adequate position sizing
Backtesting: Test your strategy before applying with real capital
Disclaimer
This indicator is a technical analysis tool and does not constitute investment advice. Always do your own analysis and manage detailed information about the risks of your operations.
🔧 TECHNICAL INFORMATION
Pine Script version: v6
Type: Indicator (overlay=true)
Compatibility: All TradingView plans
Resources used: request.security(), arrays, tables
Performance: Optimized for multiple simultaneous queries
📈 COMPETITIVE ADVANTAGES
✅ Simultaneous monitoring of 30 major assets ✅ Clear visual interface with intuitive core system ✅ Customizable alerts for different details ✅ Optimized code for maximum performance ✅ Flexible configuration adaptable to different strategies ✅ Real-time update without the need for manual refresh
Developed for traders who value efficiency and accuracy in identifying market opportunities based on the EMA 20
SMT Divergence [Dova Lazarus]Title: SMT
Description:
The SMT (Smart Money Technique) indicator is designed to help traders identify potential divergences between correlated assets, a key concept used in smart money trading strategies. It compares price action across two or more instruments to reveal hidden strength or weakness that may not be visible on a single chart.
Key Features:
Custom asset selection: Compare your main chart with any other TradingView symbol (e.g., BTC/USD vs. ETH/USD).
Real-time SMT divergence detection: Highlights potential bullish or bearish divergences when one asset makes a higher high/lower low while the other does not.
Visual markers: Plots intuitive visual cues directly on the chart to signal divergence.
Configurable timeframes: Use on any timeframe for both intraday and swing trading setups.
How to Use:
Select your base symbol (e.g., BTCUSD) on the chart.
In the indicator settings, choose a comparison symbol (e.g., ETHUSD).
Look for divergence signals:
Bearish SMT Divergence: Base symbol makes a higher high, comparison symbol fails to make a higher high → possible sell signal.
Bullish SMT Divergence: Base symbol makes a lower low, comparison symbol fails to make a lower low → possible buy signal.
This tool is ideal for traders following ICT (Inner Circle Trader) concepts or anyone interested in identifying smart money manipulation and market inefficiencies.
Position Size Calculator ProPosition Size Calculator Pro is a professional risk management tool that helps traders calculate optimal position sizes based on their account size, risk tolerance, and trade setup. The indicator provides real-time calculations with interactive price lines and a comprehensive horizontal table display for quick decision-making.
✨ Key Features
Multiple Entry Modes: Current price, manual price, or interactive buy line
Flexible Stop Loss Options: LOD (Low of Day), manual price, percentage-based, or interactive stop line
Advanced Risk Calculations: Includes brokerage impact and adjusted risk metrics
Interactive Price Lines: Visual buy and stop loss lines with real-time updates
Horizontal Table Display: Compact 2-row table showing all critical metrics
Smart Color Coding: Visual feedback based on risk and allocation levels
Professional UI: Clean, modern interface with intuitive controls
Indian Market Ready: Optimized for Indian trading with ₹ currency display
🔧 Input Parameters
💰 Risk Management
Account Size (₹): Total trading capital (default: 10,00,000)
Risk per Trade (%): Maximum risk percentage per trade (default: 0.25%, range: 0.01-5%)
Brokerage (%): Combined buy and sell brokerage (default: 0.12%, range: 0-2%)
📊 Entry & Stop Loss
Entry Mode: Choose between Current Price, Manual Price, or Buy Line
Manual Entry Price: Custom entry price (when Manual Price selected)
Stop Loss Mode: LOD SL, Manual SL, Manual SL %, or SL Line
Manual Stop Loss: Custom stop loss price
SL Percentage (%): Percentage below entry for stop loss (default: 2%, range: 0.1-20%)
📈 Interactive Lines
Buy Line Price: Interactive buy line (click on chart to set)
Stop Loss Line: Interactive stop loss line (click on chart to set)
Show Lines: Toggle line visibility
🎨 Display Options
Show Table: Toggle calculation table visibility
Table Size: Adjustable from tiny to huge
Position: Top, middle, or bottom placement
Alignment: Left, center, or right alignment
Update Frequency: Real-time or bar close
📊 Calculation Methodology
Position Size Formula
Position Size = (Account Size × Risk %) ÷ (Adjusted Risk per Share)
Risk Calculations
Base Risk: |(Entry Price - Stop Loss)| ÷ Entry Price × 100
Adjusted Risk: Includes brokerage impact on both entry and exit
Risk Amount: Position Size × Base Risk per Share
Brokerage Impact
Entry with Brokerage: Entry Price × (1 + Brokerage% ÷ 200)
Exit with Brokerage: Stop Loss × (1 - Brokerage% ÷ 200)
🎮 How to Use
Basic Setup
Set your account size and risk percentage
Configure brokerage percentage according to your broker
Choose entry and stop loss modes
The calculator automatically updates position size
Interactive Lines Setup
⚠️ IMPORTANT: After selecting line modes, refresh the chart to ensure lines are visible
For Buy Line:
Select Entry Mode: "Buy Line"
Set "Buy Line Price" or leave 0 for current price
Refresh chart to see the green buy line
Adjust price by clicking on chart or changing input value
For Stop Loss Line:
Select Stop Loss Mode: "SL Line"
Set "Stop Loss Line" or leave 0 for current low
Refresh chart to see the red stop loss line
Adjust price by clicking on chart or changing input value
Table Information
The horizontal calculation table displays:
SL: Stop Loss price
Entry: Entry price level
Risk%: Adjusted risk percentage (with brokerage)
SL%: Base stop loss risk percentage
Cap%: Account risk percentage setting
Qty: Recommended quantity to buy
Investment: Total investment amount required
Alloc%: Portfolio allocation percentage
Risk ₹: Total risk amount in Rupees
Color Coding Guide
Green Values: Positive/profitable metrics
Red Values: Risk/loss related metrics
Orange Values: Warning levels (high risk/allocation)
Blue Headers: Table headers
Bright Green Line: Buy line with target icon
Bright Red Line: Stop loss line with shield icon
🚨 Alert Conditions
Built-in Alerts
High Allocation Warning: Triggers when position exceeds 20% of account
High Risk Warning: Triggers when stop loss risk exceeds 5%
Invalid Position: Triggers when calculation parameters are invalid
Setting Up Alerts
Click "Add Alert" on the chart
Select "Position Size Calculator Pro"
Choose desired alert condition
Configure notification settings
⚠️ Important Notes & Troubleshooting
Interactive Lines
Lines not visible? Refresh the chart after selecting line modes
Lines moving together? Each line operates independently - check you're adjusting the correct price input
Default behavior: Buy line starts at current price, Stop line starts at current low
Price = 0: Uses automatic defaults (current price/low)
Risk Disclaimers
This tool is for educational purposes only
Always verify calculations independently
Consider market conditions, gaps, and liquidity
Past performance doesn't guarantee future results
Technical Limitations
Interactive lines require chart refresh for initial visibility
Calculations update based on selected frequency
Maximum 10 lines and 10 labels on chart simultaneously
Best Practices
Always set realistic account size
Never risk more than you can afford to lose
Consider slippage and market gaps in volatile conditions
Review calculations before placing actual trades
Use appropriate position sizing for your trading strategy
Refresh chart when switching between line modes
🛠️ Technical Requirements
TradingView account (any tier)
Pine Script v6 compatibility
Modern browser for interactive features
Real-time or delayed data feed
📈 Performance Features
The script includes several optimizations:
Efficient calculation updates based on frequency setting
Smart memory management for line drawings
Conditional table updates to reduce resource usage
Optimized number formatting for better readability
🎯 Use Cases
Day Trading
Quick position sizing for intraday setups
Real-time risk assessment
Interactive line placement for entry/exit planning
Swing Trading
Portfolio allocation management
Multi-timeframe risk analysis
Position size optimization for longer holds
Investment Planning
Capital allocation for stock purchases
Risk-based position sizing
Long-term portfolio management
Disclaimer: This tool is for educational and informational purposes only. Trading involves substantial risk of loss and is not suitable for all investors. Always conduct your own research and consider seeking advice from qualified financial professionals.
3 Bar Reversal3 Bar Reversal
This pattern is described in John Carter's "Mastering the Trade"
The 3 Bar Reversal indicator is a simple but effective price action tool designed to highlight potential short-term reversals in market direction. It monitors consecutive bar behavior and identifies turning points based on a three-bar pattern. This tool can assist traders in spotting trend exhaustion or early signs of a reversal, particularly in scalping or short-term trading strategies.
How It Works
This indicator analyzes the relationship between consecutive bar closes:
It counts how many bars have passed since the price closed higher than the previous close (barssince(close >= close )) — referred to as an "up streak".
It also counts how many bars have passed since the price closed lower than the previous close (barssince(close <= close )) — known as a "down streak".
A reversal condition is met when:
There have been exactly 3 bars in a row moving in one direction (up or down), and
The 4th bar closes in the opposite direction.
When this condition is detected, the script performs two actions:
Plots a triangle on the chart to signal the potential reversal:
A green triangle below the bar for a possible long (buy) opportunity.
A red triangle above the bar for a possible short (sell) opportunity.
Triggers an alert condition so users can set notifications for when a reversal is detected.
Interpretation
Long Signal: The market has printed 3 consecutive lower closes, followed by a higher close — suggesting bullish momentum may be emerging.
Short Signal: The market has printed 3 consecutive higher closes, followed by a lower close — indicating possible bearish momentum.
These patterns are common in market retracements and can act as confirmation signals when used with other indicators such as RSI, MACD, support/resistance, or volume analysis.
Usage Examples
Scalping: Use the reversal signal to quickly enter short-term trades after a short-term exhaustion move.
Swing Trading: Combine this with trend indicators (e.g., moving averages) to time pullbacks within larger trends.
Confirmation Tool: Use this indicator alongside candlestick patterns or support/resistance zones to validate entry or exit points.
Alert Setup: Enable alerts based on the built-in alertcondition to receive instant notifications for potential trade setups.
Limitations
The 3-bar reversal logic does not guarantee a trend change; it signals potential reversals, which may need confirmation.
Best used in conjunction with broader context such as trend direction, market structure, or other technical indicators.
Directional Strength IndexThis indicator is designed to detect the dominant market direction and quantify its strength by aggregating signals across six key timeframes: 1H, 4H, 1D, 3D, 1W, and 1M.
At its core, it uses a SMEMA 'the Simple Moving Average of an EMA' as the main trend reference. This hybrid smoothing method was chosen for its balance: the EMA ensures responsiveness to recent price moves, while the SMA dampens short-term volatility. This makes the SMEMA more stable than a raw EMA and more reactive than a simple SMA, especially in noisy or volatile environments.
For each timeframe, a score between -10 and +10 is calculated. This score reflects:
- the distance of the price from the SMEMA, using ATR as a dynamic threshold
- the number of price deviations above or below the SMEMA
- the slope of the SMEMA, which adjusts the score based on momentum
These six timeframe scores are then combined into a single Global Score, using weighted averages. Three weighting profiles are available depending on your trading horizon:
- Long Term: emphasizes weekly and monthly data
- Swing Trading: gives balanced importance to all timeframes
- Short Term: prioritizes 1H and 4H action
This multi-timeframe aggregation makes the indicator adaptable to different styles while maintaining a consistent logic.
The result is displayed in a table on the chart, showing:
- the trend direction per timeframe (up, down or neutral)
- the strength score per timeframe
- the overall trend direction and strength based on the selected profile
Optional deviation bands based on ATR multiples are also plotted to provide visual context for overextensions relative to the SMEMA.
This indicator is non-repainting and built for objective, trend-based decision making.
Canuck Trading Projection IndicatorCanuck Trading Projection Indicator
Overview
The Canuck Trading Projection Indicator is a powerful PineScript v6 tool designed for TradingView to project potential bullish and bearish price trajectories based on historical price and volume movements. It provides traders with actionable insights by estimating future price targets and assigning confidence levels to each outlook, helping to identify probable market directions across any timeframe. Ideal for both short-term and long-term traders, this indicator combines momentum analysis, RSI filtering, support/resistance detection, and time-weighted trend analysis to deliver robust projections.
Features
Bullish and Bearish Projections: Forecasts price targets for upward (bullish) and downward (bearish) movements over a user-defined projection period (default 20 bars).
Confidence Levels: Assigns percentage confidence scores to each outlook, reflecting the likelihood of the projected price based on historical trends, volatility, and volume.
RSI Filter: Incorporates a 14-period Relative Strength Index (RSI) to validate trends, requiring RSI > 50 for bullish and RSI < 50 for bearish signals.
Support/Resistance Detection: Adjusts confidence levels when projections are near key swing highs/lows (within 2% of average price), boosting confidence by 5% for alignments.
Time-Based Weighting: Prioritizes recent price movements in trend analysis, giving more weight to newer bars for improved relevance.
Customizable Inputs: Allows users to tailor lookback period, projection bars, RSI period, confidence threshold, colors, and label positioning.
Forced Label Spacing: Prevents overlap of bullish and bearish text labels, even for tight projections, using fixed vertical slots when price differences are small (<2% of average price).
Timeframe Flexibility: Works seamlessly across all TradingView timeframes (e.g., 30-minute, hourly, daily, weekly, monthly), adapting projections to the chart’s resolution.
Clean Visualization: Displays projections as green (bullish) and red (bearish) dashed lines, with non-overlapping text labels at the projection endpoints showing price targets and confidence levels.
How It Works
The indicator analyzes historical price and volume data over a user-defined lookback period (default 50 bars) to calculate:
Momentum: Combines price changes and volume to assess trend strength, using a weighted moving average (WMA) for directional bias.
Trend Analysis: Counts bullish (price up, volume above average, RSI > 50) and bearish (price down, volume above average, RSI < 50) trends, weighting recent bars more heavily.
Projections:
Bullish Slope: Positive or flat when momentum is upward, scaled by price change and momentum intensity.
Bearish Slope: Negative or flat when momentum is downward, amplified by bearish confidence for stronger projections.
Projects prices forward by 20 bars (default) using current close plus slope times projection bars.
Confidence Levels:
Base confidence derived from the proportion of bullish/bearish trends, with a 5% minimum to avoid zero confidence.
Adjusted by volatility (lower volatility increases confidence), volume trends, and proximity to support/resistance levels.
Visualization:
Draws projection lines from the current close to the 20-bar future target.
Places text labels at line endpoints, showing price targets and confidence percentages, with forced spacing for readability.
Input Parameters
Lookback Period (default: 50): Number of bars for historical analysis (minimum 10).
Projection Bars (default: 20): Number of bars to project forward (minimum 5).
Confidence Threshold (default: 0.6): Minimum confidence for strong trend indication (0.1 to 1.0).
Bullish Projection Line Color (default: Green): Color for bullish projection line and label.
Bearish Projection Line Color (default: Red): Color for bearish projection line and label.
RSI Period (default: 14): Period for RSI momentum filter (minimum 5).
Label Vertical Offset (%) (default: 1.0): Base offset for labels as a percentage of price range (0.1% to 5.0%).
Minimum Label Spacing (%) (default: 2.0): Minimum vertical spacing between labels for tight projections (0.5% to 10.0%).
Usage Instructions
Add to Chart: Copy the script into TradingView’s Pine Editor, save, and add the indicator to your chart.
Select Timeframe: Apply to any timeframe (e.g., 30-minute, hourly, daily, weekly, monthly) to match your trading strategy.
Interpret Outputs:
Green Line/Label: Bullish price target and confidence (e.g., "Bullish: 414.37, Confidence: 35%").
Red Line/Label: Bearish price target and confidence (e.g., "Bearish: 279.08, Confidence: 41.3%").
Higher confidence indicates a stronger likelihood of the projected outcome.
Adjust Inputs:
Modify Lookback Period to focus on shorter/longer historical trends (e.g., 20 for short-term, 100 for long-term).
Change Projection Bars to adjust forecast horizon (e.g., 10 for shorter, 50 for longer).
Tweak RSI Period or Confidence Threshold for sensitivity to momentum or trend strength.
Customize Colors for visual preference.
Increase Minimum Label Spacing if labels overlap in volatile markets.
Combine with Analysis: Use alongside other indicators (e.g., moving averages, Bollinger Bands) or fundamental analysis to confirm signals, as projections are probabilistic.
Example: TSLA Across Timeframes
Using live TSLA data (close ~346.46 USD, May 31, 2025), the indicator produces:
30-Minute: Bullish 341.93 (13.3%), Bearish 327.96 (86.7%) – Strong bearish sentiment due to intraday volatility.
1-Hour: Bullish 342.00 (33.9%), Bearish 327.50 (62.3%) – Bearish but less intense, reflecting hourly swings.
4-Hour: Bullish 345.52 (73.4%), Bearish 344.44 (19.0%) – Flat outlook, indicating consolidation.
Daily: Bullish 391.26 (68.8%), Bearish 302.22 (31.2%) – Bullish bias from recent uptrend, bearish tempered by longer lookback.
Weekly: Bullish 414.37 (35.0%), Bearish 279.08 (41.3%) – Wide range, reflecting annual volatility.
Monthly: Bullish 396.70 (54.9%), Bearish 296.93 (10.2%) – Long-term bullish optimism.
These results align with market dynamics: short-term intervals capture volatility, while longer intervals smooth trends, providing balanced outlooks.
Notes
Accuracy: Projections are estimates based on historical data and should be used with other analysis tools. Confidence levels indicate likelihood, not certainty.
Timeframe Sensitivity: Short-term intervals (e.g., 30-minute) show larger price swings and higher confidence due to volatility, while longer intervals (e.g., monthly) are more stable.
Customization: Adjust inputs to match your trading style (e.g., shorter lookback for day trading, longer for swing trading).
Performance: Tested on volatile stocks like TSLA, NVIDIA, and others, ensuring robust performance across markets.
Limitations: May produce conservative bearish projections in strong uptrends due to momentum weighting. Adjust lookback or projection_bars for sensitivity.
Feedback
If you encounter issues (e.g., label overlap, projection mismatches), please share your timeframe, settings, or a screenshot. Suggestions for enhancements (e.g., additional filters, visual tweaks) are welcome!
Disclaimer
The Canuck Trading Projection Indicator is provided for educational and informational purposes only. It is not financial advice. Trading involves significant risks, and past performance is not indicative of future results. Always perform your own due diligence and consult a qualified financial advisor before making trading decisions.
Candle Range Trading (CRT) with Alerts
📌 Description:
The Candle Range Trading (CRT) indicator identifies potential reversal or continuation setups based on specific two-candle price action patterns.
It analyzes pairs of candles to detect Bullish or Bearish CRT patterns and provides visual signals (triangles) and alert notifications to support scalp or swing trading strategies.
🔍 How It Works:
🔻 Bearish CRT Pattern:
Candle 1 is bullish
Candle 2 is bearish
Candle 2's high > Candle 1's high
Candle 2 closes within Candle 1’s range
🔺 Red triangle above candle
🔺 Bullish CRT Pattern:
Candle 1 is bearish
Candle 2 is bullish
Candle 2's low < Candle 1's low
Candle 2 closes within Candle 1’s range
🔻 Green triangle below candle
📈 Visual Features:
🔺 Red triangle = Bearish CRT
🔻 Green triangle = Bullish CRT
📏 Optional box showing CRT High and CRT Low
🔔 Built-in Alerts:
Bullish CRT Alert: "Bullish CRT Pattern Detected"
Bearish CRT Alert: "Bearish CRT Pattern Detected"
Set alerts to get notified instantly when a pattern is detected.
⚠️ Note:
Use in conjunction with trend filters, support/resistance, or volume for best results.
Ideal for scalping or short-term trades.
Avoid trading in choppy or low-volume markets.
⚠️ Disclaimer:
This script was generated with the assistance of ChatGPT by OpenAI and is intended for educational and informational purposes only.
All strategies, alerts, and signals derived from this indicator should be thoroughly backtested and validated before using in live trading.
Trading involves substantial risk, and past performance is not indicative of future results. The author and ChatGPT bear no responsibility for any trading losses or financial decisions made using this script.
Users are solely responsible for the risks associated with their trading actions. Always apply proper risk management and perform your own due diligence before making any financial decisions.
Paul_BDT Osc. MACD, ADX, CHOP, RSI & CVD🔧 Overview
Modular multi-oscillator engine designed for actionable and filtered trading signals. It combines the power of MACD, ADX, CHOP, RSI, and CVD, integrates advanced divergence detection, a multi-timeframe dashboard, and a built-in risk management system.
⸻
🚨 Alert System
Alerts are organized by signal type, oscillator used, and timeframe block, with precision controls for filtering and sensitivity.
1. Oscillator Alerts (Osc.)
Triggers ▲ / ▼ triangle markers based on trend momentum shifts detected on the selected oscillator:
• MACD: triggers when histogram crosses 0 with bullish or bearish slope
• ADX: triggers on directional breakout with increasing trend strength
• CHOP: signals trend resumption after choppy market phase
• RSI: breakout from dynamic support/resistance using pivot detection
• CVD: shift in buy/sell pressure based on aggregated volume delta
✅ All signals optionally trigger on bar close only (if enabled)
2. Divergence Alerts (Div.)
Automatic detection of:
• 🔼 Regular Divergences
• Bullish: Lower lows in price, higher lows in oscillator
• Bearish: Higher highs in price, lower highs in oscillator
• 🔁 Hidden Divergences
• Hidden Bullish: Higher lows in price, lower lows in oscillator
• Hidden Bearish: Lower highs in price, higher highs in oscillator
Alert trigger logic:
• Divergences only trigger if confirmed by price action:
→ breakout from wick or close beyond BB/RSI dynamic bands
• Alerts are non-repeating (fires only on signal change)
🔔 divergeUP and divergeDN are fired when divergence AND price condition are met.
3. Reversal Alerts (Rev.)
Strict combo alert:
• reverseUP = divergeUP AND bullish wick breakout
• reverseDN = divergeDN AND bearish wick breakout
🧠 These are high-conviction signals, ideal for swing entries or reversion trades.
📊 Multi-Timeframe Support (4 Blocks)
4 independent blocks:
• Scalp, Intra, Swing, Custom
• Each block accepts 3 sorted timeframes
• You can individually enable:
• Oscillator alerts
• Divergences
• Reversals
Example:
• Scalp: RSI only, no divergence
• Intra: CVD + reversal only
• Swing: MACD + divergence + reversal
Each timeframe is dynamically sorted and shown in a structured dashboard grid (TF01 to TF12), making the multi-timeframe readout seamless.
⸻
⚙️ Additional Features
• Full visual panel with color-coded trend indicators
• Take Profit/Exit Alerts available on a custom timeframe
• Built-in Money Management:
• % or USD risk
• Configurable R/R ratio
• Minimum PnL threshold (filter out low-return setups)
⸻
✅ Best Use Cases
• High-frequency scalping (1s–1min) with real-time oscillator breakouts
• Structured intraday/swing planning using divergence + reversal logic
• Manual backtesting and alert-based discretionary entries
⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻
🧠 Fonctionnalités
• Oscillateurs personnalisables : activez un indicateur à la fois (MACD, ADX, CHOP, RSI, ou CVD) pour une analyse ciblée et lisible.
• Détection des divergences :
• Divergences classiques (bullish/bearish),
• Divergences cachées (hidden bullish/bearish),
• Filtres avancés pour ne détecter que les signaux pertinents (crossover/crossunder + break de mèche).
• Multi-timeframes :
• Jusqu’à 4 blocs configurables (scalp, intra, swing, custom),
• Tri automatique des UT,
• Alertes différenciées par bloc et par type de signal.
• Visualisation modulaire :
• Tableau de synthèse personnalisable, affichant l’état de chaque indicateur par UT,
• Affichage hors graphique ou directement sur le chart,
• Couleurs dynamiques pour les signaux haussiers, baissiers ou neutres.
• Gestion du risque intégrée :
• Paramétrez le risque en % du capital ou en valeur absolue (USD),
• Ratio risk/reward configurable pour filtrer les signaux,
• Seuil de profit minimum (PnL) configurable pour filtrer les signaux.
• Support de volumes agrégés multi-exchange pour CVD : compatible avec les plateformes crypto (BITGET, BINANCE, etc).
⸻
⚙️ Personnalisation
• Choix du type de moyenne mobile (EMA, RMA, VWAP, etc.).
• Activation sélective des signaux (Oscillateur, Divergence, Renversement) pour chaque bloc de timeframes.
⸻
📈 Alertes intégrées
• Compatibles avec les alertes automatiques de TradingView,
• Détection de signaux d’entrée (achat/vente), divergences, renversements,
• Configuration des alertes par type de signal et par timeframe (scalp/intra/swing/custom).
⸻
🔍 Utilisations recommandées
• Scalping haute fréquence (1s à 1min),
• Intraday en multi-UT (5 à 30min),
• Swing trading (1H à 1D),
• Analyse technique avancée sur crypto, indices, forex ou actions.
⸻
📌 Conclusion
Ce script combine précision algorithmique et flexibilité de personnalisation.
Time Based Range# Time Based Range
**A fully customizable session-based range indicator for intraday and daily trading analysis**
## Overview
The Time Based Range indicator identifies and visualizes key price levels from any user-defined time session. Whether you're trading the London open, New York session, or any custom timeframe, this indicator helps you identify crucial support and resistance levels formed during specific trading periods.
## Key Features
### 🕒 **Flexible Session Configuration**
- Customize any time range (e.g., 05:00-13:00, 20:00-02:00)
- Select specific days of the week (Sunday=1 through Saturday=7)
- Works on any timeframe from 1-minute to daily charts
### 📊 **Three Display Modes**
**OHLC Mode:**
- Shows Open, High, Low, Close, and Midpoint lines
- Fully customizable line colors, styles, and widths
- Optional labels with custom text
- Toggle individual lines on/off
**Range Mode:**
- Displays High, Low, and Midpoint lines extending into the future
- Session background box for visual clarity
- Configurable extension length in hours
- Clean range-based analysis
**Mitigate Mode:**
- Horizontal pivot lines that extend until price "mitigates" (touches) them
- Session background box
- Lines automatically stop extending when price reaches the level
- Perfect for ICT-style analysis
### 🚨 **Advanced Alert System**
**Breakout Alerts:**
- Notifies when price breaks above session high or below session low
- Real-time notifications for range expansion
**Liquidity Sweep Alerts:**
- Detects when price briefly breaks a level but closes back inside the range
- Configurable lookback period for sweep detection
- Helps identify false breakouts and liquidity grabs
**Equilibrium Rejection Alerts:**
- Monitors price reaction at the session midpoint
- Detects strong rejections with wick formations
- Configurable sensitivity threshold
### 🎨 **Full Customization**
- Individual color settings for all lines and boxes
- Multiple line style options (Solid, Dashed, Dotted)
- Adjustable line widths and transparency
- Custom label text and positioning
- Session limit control (1-10 sessions displayed)
## Use Cases
### Day Trading
- Mark key levels from overnight sessions
- Identify London/New York opening ranges
- Track Asian session highs and lows
### Swing Trading
- Daily range analysis
- Multi-day level identification
- Key support/resistance from specific periods
### ICT/SMC Trading
- Liquidity pool identification
- Fair value gap analysis
- Market structure understanding
## Technical Specifications
- **Maximum Sessions:** 1-10 (user configurable)
- **Time Format:** 24-hour (HHMM-HHMM)
- **Day Selection:** Individual day toggles (1=Sunday through 7=Saturday)
- **Alert Types:** 4 different alert conditions
- **Drawing Objects:** Optimized with automatic cleanup
- **Performance:** Efficient array management prevents chart lag
## Best Practices
1. **Start Simple:** Begin with OHLC mode to understand session dynamics
2. **Use Alerts:** Enable notifications for key level interactions
3. **Combine Modes:** Switch between modes based on market conditions
4. **Optimize Settings:** Adjust colors and styles for your chart theme
5. **Multiple Timeframes:** Use different sessions for various trading strategies
## Compatibility
- Works on all TradingView chart types
- Compatible with all asset classes (Forex, Stocks, Crypto, Futures)
- Optimized for both light and dark themes
- Mobile-friendly display
---
*This indicator helps traders identify high-probability trading zones based on time-specific price action. Always combine with proper risk management and additional analysis methods.*
Hull Moving Average RibbonGradient Wave HMA - Multi-Ribbon Hull Moving Average System
Overview
The Gradient Wave HMA is an advanced technical indicator that transforms Alan Hull's Hull Moving Average (HMA) into a dynamic multi-layered ribbon system. Unlike traditional moving average ribbons that use simple or exponential calculations, this indicator applies Hull's innovative lag-reduction formula across 12 different timeframes simultaneously, creating a visually striking gradient effect that flows with market momentum.
Technical Foundation
This indicator is built upon the Hull Moving Average, developed by Alan Hull in 2005. The HMA uses a weighted moving average calculation designed to almost eliminate lag while maintaining curve smoothness:
HMA = WMA(2*WMA(n/2) − WMA(n), sqrt(n))
Credit: Alan Hull (www.alanhull.com)
Key Features
Multi-Period Ribbon Structure
12 individual HMA lines with customizable periods
Preset configurations for different trading styles:
Fast: 3-30 period range (scalping/intraday)
Swing: 8-55 period range (swing trading)
Position: 20-100 period range (position trading)
Custom: User-defined periods
2. Neon Gradient Visualization
Bullish Gradient: Transitions from blue-purple to hot purple
Bearish Gradient: Flows from hot pink to purple-pink
Each line has a unique color in the spectrum
Gradient fills between lines create depth and visual flow
3. Advanced Alert System
Trend Reversal Alerts: Notifies when ribbon changes direction
Price Breakout Alerts: Triggers when price crosses the ribbon
Compression Alerts: Signals potential breakouts during consolidation
Expansion Alerts: Confirms strong trending conditions
Momentum Surge Alerts: Catches explosive moves early
How It Works
The indicator calculates 12 Hull Moving Averages, each with a different period length. The trend direction is determined by the middle HMA (6th line), which triggers the color change across the entire ribbon. When trending up, the ribbon displays a purple gradient; when trending down, it shifts to a pink gradient.
Trading Applications
1. Trend Identification
Ribbon color indicates overall trend direction
All lines moving in sync confirms strong trend
Mixed signals suggest choppy or transitioning markets
2. Dynamic Support/Resistance
In uptrends, the ribbon acts as moving support
In downtrends, it provides resistance levels
Multiple layers offer various strength levels
3. Momentum Analysis
Expanding ribbon = Increasing momentum
Contracting ribbon = Decreasing momentum/consolidation
Ribbon angle indicates trend strength
4. Trading Example
Advantages Over Traditional MAs
Reduced Lag: Hull's formula provides faster response than SMA/EMA ribbons
Visual Clarity: Gradient effect makes trend changes immediately visible
Multiple Timeframes: 12 periods provide comprehensive market view
Flexibility: Presets adapt to different trading styles
Best Practices
Use higher timeframes (4H, Daily) for position trading
Combine with volume indicators for confirmation
Watch for ribbon compression before major moves
Consider overall market conditions when interpreting signals
Customization Options
Adjust individual HMA periods
Fine-tune transparency for different backgrounds
Choose between WMA and EMA base calculations
The Gradient Wave HMA combines Alan Hull's breakthrough moving average formula with modern visualization techniques to create a powerful trend-following tool that's both technically sophisticated and visually intuitive.
ZigZag ProZigZag Pro is a precise market structure indicator that automatically detects two independent ZigZag patterns and highlights breakouts whenever significant highs or lows are breached.
The indicator calculates two separate ZigZag structures in real time. ZigZag1 captures the broader market swings and is ideal for trend or swing trading. ZigZag2 is optional and reacts more quickly – perfect for intraday or scalping setups. Both layers are fully customizable in terms of depth, color, and line width.
What makes this tool especially useful: whenever a previous swing high (for long trades) or swing low (for short trades) is broken, the indicator draws a horizontal breakout line on the chart. This makes it easy to spot structural breakouts and take advantage of potential momentum moves.
ZigZag Pro is designed for traders who rely on clean, rule-based market structure — whether you're trading classic breakouts, smart money concepts, or simply want a clearer view of trend shifts. The visuals are minimal, responsive, and suitable for any timeframe.
CryptoNeo - Crypto Stablecoin MatrixThe CryptoNeo – Crypto Stablecoin Matrix is a forward-looking indicator that decodes broad crypto market sentiment by analyzing how stablecoins behave across spot and futures markets.
Stablecoins are the lifeblood of the crypto ecosystem, and how they move can offer early insight into future market direction. This tool leverages that behavior to forecast potential price action across major cryptocurrencies like BTC, ETH, SOL, DOGE, and other large-cap coins that tend to move in sync with the broader market.
Originally derived from a suite of alpha signals developed for a systematic crypto trading algorithm, this indicator compresses advanced stablecoin flow analytics into a clear and intuitive visual format — designed specifically for discretionary traders.
It is optimized for trading on the 30-minute to 4-hour timeframes, where the nuances of capital flow are most actionable. Whether you’re swing trading majors or scouting key pivot points, this tool provides a fresh edge rooted in stablecoin dynamics.
The Matrix is composed of four core components that signal changes in sentiment, capital flow, and market positioning:
1. Stablecoin Futures Flow (Bullish/Bearish)
Detects shifts in leveraged positioning in the futures market based on proprietary flow dynamics.
🟩 Green squares = bullish futures flow (long bias)
🟥 Red squares = bearish futures flow (short bias)
Helps identify directional sentiment through futures-driven stablecoin movement.
2. Stablecoin Spot Flow (Bullish/Bearish)
Analyzes momentum in spot market stablecoin activity to reveal potential accumulation or distribution.
🟢 Green circles = bullish spot flow (buying pressure)
🔴 Red circles = bearish spot flow (selling pressure)
Offers early signals of demand or profit-taking pressure.
3. Futures Oversold/Overbought Level 1
Identifies early signs of exhaustion or trend slowing based on leveraged market conditions.
🟢 Green diamonds = early oversold signal
🔴 Red diamonds = early overbought signal
Useful for catching subtle turning points or slowing momentum.
4. Futures Oversold/Overbought Level 2
Flags rare and extreme positioning events that may precede major reversals.
🟢 Large green diamonds = deep oversold condition
🔴 Large red diamonds = deep overbought condition
Highlights moments of extreme imbalance or sentiment peaks.
Customization & Flexibility
Adjustable sensitivity settings allow you to fine-tune:
Bullish and bearish Spot and Futures Flow
Thresholds for Level 1 and Level 2 Overbought/Oversold signals
This ensures traders can align signal responsiveness with their trading style and market conditions.
Best Used For:
Swing trading crypto majors (BTC, ETH, SOL, DOGE, etc.)
Timeframes between 30 minutes and 4 hours
Identifying trend reversals and accumulation zones
Tracking macro market sentiment using stablecoin behavior
Quantum State Superposition Indicator (QSSI)Quantum State Superposition Indicator (QSSI) - Where Physics Meets Finance
The Quantum Revolution in Market Analysis
After months of research into quantum mechanics and its applications to financial markets, I'm thrilled to present the Quantum State Superposition Indicator (QSSI) - a groundbreaking approach that models price action through the lens of quantum physics. This isn't just another technical indicator; it's a paradigm shift in how we understand market behavior.
The Theoretical Foundation
Quantum Superposition in Markets
In quantum mechanics, particles exist in multiple states simultaneously until observed. Similarly, markets exist in a superposition of potential states (bullish, bearish, neutral) until a significant volume event "collapses" the wave function into a definitive direction.
The mathematical framework:
Wave Function (Ψ): Represents the market's quantum state as a weighted sum of all possible states:
Ψ = Σ(αᵢ × Sᵢ)
Where αᵢ are probability amplitudes and Sᵢ are individual quantum states.
Probability Amplitudes: Calculated using the Born rule, normalized so Σ|αᵢ|² = 1
Observation Operator: Volume/Average Volume ratio determines observation strength
The Five Quantum States
Momentum State: Short-term price velocity (EMA of returns)
Mean Reversion State: Deviation from equilibrium (normalized z-score)
Volatility Expansion State: ATR relative to historical average
Trend Continuation State: Long-term price positioning
Chaos State: Volatility of volatility (market uncertainty)
Each state contributes to the overall wave function based on current market conditions.
Wave Function Collapse
When volume exceeds the observation threshold (default 1.5x average), the wave function "collapses," committing the market to a direction. This models how institutional volume forces markets out of uncertainty into trending states.
Collapse Detection Formula:
Collapse = Volume > (Threshold × Average Volume)
Direction = Sign(Ψ) at collapse moment
Advanced Quantum Concepts
Heisenberg Uncertainty Principle
The indicator calculates market uncertainty as the product of price and momentum
uncertainties:
ΔP × ΔM = ℏ (market uncertainty constant)
This manifests as dynamic uncertainty bands that widen during unstable periods.
Quantum Tunneling
Calculates the probability of price "tunneling" through resistance/support barriers:
P(tunnel) = e^(-2×|barrier_height|×√coherence_length)
Unlike classical technical analysis, this gives probability of breakouts before they occur.
Entanglement
Measures the quantum correlation between price and volume:
Entanglement = |Correlation(Price, Volume, lookback)|
High entanglement suggests coordinated institutional activity.
Decoherence
When market states lose quantum properties and behave classically:
Decoherence = 1 - Σ(amplitude²)
Indicates trend emergence from quantum uncertainty.
Visual Innovation
Probability Clouds
Three-tier probability distributions visualize market uncertainty:
Inner Cloud (68%): One standard deviation - most likely price range
Middle Cloud (95%): Two standard deviations - probable extremes
Outer Cloud (99.7%): Three standard deviations - tail risk zones
Cloud width directly represents market uncertainty - wider clouds signal higher entropy states.
Quantum State Visualization
Colored dots represent individual quantum states:
Green: Momentum state strength
Red: Mean reversion state strength
Yellow: Volatility state strength
Dot brightness indicates amplitude (influence) of each state.
Collapse Events
Aqua Diamonds (Above): Bullish collapse - upward commitment
Pink Diamonds (Below): Bearish collapse - downward commitment
These mark precise moments when markets exit superposition.
Implementation Details
Core Calculations
Feature Extraction: Normalize price returns, volume ratios, and volatility measures
State Calculation: Compute each quantum state's value
Amplitude Assignment: Weight states by market conditions and observation strength
Wave Function: Sum weighted states for final market quantum state
Visualization: Transform quantum values to price space for display
Performance Optimization
- Efficient array operations for state calculations
- Single-pass normalization algorithms
- Optimized correlation calculations for entanglement
- Smart label management to prevent visual clutter
Trading Applications:
Signal Generation
Bullish Signals:
- Positive wave function during collapse
- High tunneling probability at support
- Coherent market state with bullish bias
Bearish Signals:
- Negative wave function during collapse
- High tunneling probability at resistance
- Decoherent state transitioning bearish
Risk Management
Uncertainty-Based Position Sizing:
Narrow clouds: Normal position size
Wide clouds: Reduced position size
Extreme uncertainty: Stay flat
Quantum Stop Losses:
- Place stops outside probability clouds
- Adjust for Heisenberg uncertainty
- Respect quantum tunneling levels
Market Regime Recognition
Quantum Coherent (Superposed):
- Market in multiple states
- Avoid directional trades
- Prepare for collapse
Quantum Decoherent (Classical):
-Clear trend emergence
- Follow directional signals
- Traditional analysis applies
Advanced Features
Adaptive Dashboards
Quantum State Panel: Real-time wave function, dominant state, and coherence status
Performance Metrics: Win rate, signal frequency, and regime analysis
Information Guide: Comprehensive explanation of all quantum concepts
- All dashboards feature adjustable sizing for different screen resolutions.
Multi-Timeframe Quantum Analysis
The indicator adapts to any timeframe:
Scalping (1-5m): Short coherence length, sensitive thresholds
Day Trading (15m-1H): Balanced parameters
Swing Trading (4H-1D): Long coherence, stable states
Alert System
Sophisticated alerts for:
- Wave function collapse events
- Decoherence transitions
- High tunneling probability
- Strong entanglement detection
Originality & Innovation
This indicator introduces several firsts:
Quantum Superposition: First to model markets as quantum systems
Wave Function Collapse: Original volume-triggered state commitment
Tunneling Probability: Novel breakout prediction method
Entanglement Metrics: Unique price-volume quantum correlation
Probability Clouds: Revolutionary uncertainty visualization
Development Journey
Creating QSSI required:
- Deep study of quantum mechanics principles
- Translation of physics equations to market context
- Extensive backtesting across multiple markets
- UI/UX optimization for trader accessibility
- Performance optimization for real-time calculation
- The result bridges cutting-edge physics with practical trading.
Best Practices
Parameter Optimization
Quantum States (2-5):
- 2-3 for simple markets (forex majors)
- 4-5 for complex markets (indices, crypto)
Coherence Length (10-50):
- Lower for fast markets
- Higher for stable markets
Observation Threshold (1.0-3.0):
- Lower for active markets
- Higher for thin markets
Signal Confirmation
Always confirm quantum signals with:
- Market structure (support/resistance)
- Volume patterns
- Correlated assets
- Fundamental context
Risk Guidelines
- Never risk more than 2% per trade
- Respect probability cloud boundaries
- Exit on decoherence shifts
- Scale with confidence levels
Educational Value
QSSI teaches advanced concepts:
- Quantum mechanics applications
- Probability theory
- Non-linear dynamics
- Risk management
- Market microstructure
Perfect for traders seeking deeper market understanding.
Disclaimer
This indicator is for educational and research purposes only. While quantum mechanics provides a fascinating framework for market analysis, no indicator can predict future prices with certainty. The probabilistic nature of both quantum mechanics and markets means outcomes are inherently uncertain.
Always use proper risk management, conduct thorough analysis, and never risk more than you can afford to lose. Past performance does not guarantee future results.
Conclusion
The Quantum State Superposition Indicator represents a revolutionary approach to market analysis, bringing institutional-grade quantum modeling to retail traders. By viewing markets through the lens of quantum mechanics, we gain unique insights into uncertainty, probability, and state transitions that classical indicators miss.
Whether you're a physicist interested in finance or a trader seeking cutting-edge tools, QSSI opens new dimensions in market analysis.
"The market, like Schrödinger's cat, exists in multiple states until observed through volume."
* As you may have noticed, the past two indicators I've released (Lorentzian Classification and Quantum State Superposition) are designed with strategy implementation in mind. I'm currently developing a stable execution platform that's completely unique and moves away from traditional ATR-based position sizing and stop loss systems. I've found ATR-based approaches to be unreliable in volatile markets and regime transitions - they often lag behind actual market conditions and can lead to premature exits or oversized positions during volatility spikes.
The goal is to create something that adapts to market conditions in real-time using the quantum and relativistic principles we've been exploring. Hopefully I'll have something groundbreaking to share soon. Stay tuned!
Trade with quantum insight. Trade with QSSI .
— Dskyz , for DAFE Trading Systems
Lorentzian Classification - Advanced Trading DashboardLorentzian Classification - Relativistic Market Analysis
A Journey from Theory to Trading Reality
What began as fascination with Einstein's relativity and Lorentzian geometry has evolved into a practical trading tool that bridges theoretical physics and market dynamics. This indicator represents months of wrestling with complex mathematical concepts, debugging intricate algorithms, and transforming abstract theory into actionable trading signals.
The Theoretical Foundation
Lorentzian Distance in Market Space
Traditional Euclidean distance treats all feature differences equally, but markets don't behave uniformly. Lorentzian distance, borrowed from spacetime geometry, provides a more nuanced similarity measure:
d(x,y) = Σ ln(1 + |xi - yi|)
This logarithmic formulation naturally handles:
Scale invariance: Large price moves don't overwhelm small but significant patterns
Outlier robustness: Extreme values are dampened rather than dominating
Non-linear relationships: Captures market behavior better than linear metrics
K-Nearest Neighbors with Relativistic Weighting
The algorithm searches historical market states for patterns similar to current conditions. Each neighbor receives weight inversely proportional to its Lorentzian distance:
w = 1 / (1 + distance)
This creates a "gravitational" effect where closer patterns have stronger influence on predictions.
The Implementation Challenge
Creating meaningful market features required extensive experimentation:
Price Features: Multi-timeframe momentum (1, 2, 3, 5, 8 bar lookbacks) Volume Features: Relative volume analysis against 20-period average
Volatility Features: ATR and Bollinger Band width normalization Momentum Features: RSI deviation from neutral and MACD/price ratio
Each feature undergoes min-max normalization to ensure equal weighting in distance calculations.
The Prediction Mechanism
For each current market state:
Feature Vector Construction: 12-dimensional representation of market conditions
Historical Search: Scan lookback period for similar patterns using Lorentzian distance
Neighbor Selection: Identify K nearest historical matches
Outcome Analysis: Examine what happened N bars after each match
Weighted Prediction: Combine outcomes using distance-based weights
Confidence Calculation: Measure agreement between neighbors
Technical Hurdles Overcome
Array Management: Complex indexing to prevent look-ahead bias
Distance Calculations: Optimizing nested loops for performance
Memory Constraints: Balancing lookback depth with computational limits
Signal Filtering: Preventing clustering of identical signals
Advanced Dashboard System
Main Control Panel
The primary dashboard provides real-time market intelligence:
Signal Status: Current prediction with confidence percentage
Neighbor Analysis: How many historical patterns match current conditions
Market Regime: Trend strength, volatility, and volume analysis
Temporal Context: Real-time updates with timestamp
Performance Analytics
Comprehensive tracking system monitors:
Win Rate: Percentage of successful predictions
Signal Count: Total predictions generated
Streak Analysis: Current winning/losing sequence
Drawdown Monitoring: Maximum equity decline
Sharpe Approximation: Risk-adjusted performance estimate
Risk Assessment Panel
Multi-dimensional risk analysis:
RSI Positioning: Overbought/oversold conditions
ATR Percentage: Current volatility relative to price
Bollinger Position: Price location within volatility bands
MACD Alignment: Momentum confirmation
Confidence Heatmap
Visual representation of prediction reliability:
Historical Confidence: Last 10 periods of prediction certainty
Strength Analysis: Magnitude of prediction values over time
Pattern Recognition: Color-coded confidence levels for quick assessment
Input Parameters Deep Dive
Core Algorithm Settings
K Nearest Neighbors (1-20): More neighbors create smoother but less responsive signals. Optimal range 5-8 for most markets.
Historical Lookback (50-500): Deeper history improves pattern recognition but reduces adaptability. 100-200 bars optimal for most timeframes.
Feature Window (5-30): Longer windows capture more context but reduce sensitivity. Match to your trading timeframe.
Feature Selection
Price Changes: Essential for momentum and reversal detection Volume Profile: Critical for institutional activity recognition Volatility Measures: Key for regime change detection Momentum Indicators: Vital for trend confirmation
Signal Generation
Prediction Horizon (1-20): How far ahead to predict. Shorter horizons for scalping, longer for swing trading.
Signal Threshold (0.5-0.9): Confidence required for signal generation. Higher values reduce false signals but may miss opportunities.
Smoothing (1-10): EMA applied to raw predictions. More smoothing reduces noise but increases lag.
Visual Design Philosophy
Color Themes
Professional: Corporate blue/red for institutional environments Neon: Cyberpunk cyan/magenta for modern aesthetics
Matrix: Green/red hacker-inspired palette Classic: Traditional trading colors
Information Hierarchy
The dashboard system prioritizes information by importance:
Primary Signals: Largest, most prominent display
Confidence Metrics: Secondary but clearly visible
Supporting Data: Detailed but unobtrusive
Historical Context: Available but not distracting
Trading Applications
Signal Interpretation
Long Signals: Prediction > threshold with high confidence
Look for volume confirmation
- Check trend alignment
- Verify support levels
Short Signals: Prediction < -threshold with high confidence
Confirm with resistance levels
- Check for distribution patterns
- Verify momentum divergence
- Market Regime Adaptation
Trending Markets: Higher confidence in directional signals
Ranging Markets: Focus on reversal signals at extremes
Volatile Markets: Require higher confidence thresholds
Low Volume: Reduce position sizes, increase caution
Risk Management Integration
Confidence-Based Sizing: Larger positions for higher confidence signals
Regime-Aware Stops: Wider stops in volatile regimes
Multi-Timeframe Confirmation: Align signals across timeframes
Volume Confirmation: Require volume support for major signals
Originality and Innovation
This indicator represents genuine innovation in several areas:
Mathematical Approach
First application of Lorentzian geometry to market pattern recognition. Unlike Euclidean-based systems, this naturally handles market non-linearities.
Feature Engineering
Sophisticated multi-dimensional feature space combining price, volume, volatility, and momentum in normalized form.
Visualization System
Professional-grade dashboard system providing comprehensive market intelligence in intuitive format.
Performance Tracking
Real-time performance analytics typically found only in institutional trading systems.
Development Journey
Creating this indicator involved overcoming numerous technical challenges:
Mathematical Complexity: Translating theoretical concepts into practical code
Performance Optimization: Balancing accuracy with computational efficiency
User Interface Design: Making complex data accessible and actionable
Signal Quality: Filtering noise while maintaining responsiveness
The result is a tool that brings institutional-grade analytics to individual traders while maintaining the theoretical rigor of its mathematical foundation.
Best Practices
- Parameter Optimization
- Start with default settings and adjust based on:
Market Characteristics: Volatile vs. stable
Trading Timeframe: Scalping vs. swing trading
Risk Tolerance: Conservative vs. aggressive
Signal Confirmation
Never trade on Lorentzian signals alone:
Price Action: Confirm with support/resistance
Volume: Verify with volume analysis
Multiple Timeframes: Check higher timeframe alignment
Market Context: Consider overall market conditions
Risk Management
Position Sizing: Scale with confidence levels
Stop Losses: Adapt to market volatility
Profit Targets: Based on historical performance
Maximum Risk: Never exceed 2-3% per trade
Disclaimer
This indicator is for educational and research purposes only. It does not constitute financial advice or guarantee profitable trading results. The Lorentzian classification system reveals market patterns but cannot predict future price movements with certainty. Always use proper risk management, conduct your own analysis, and never risk more than you can afford to lose.
Market dynamics are inherently uncertain, and past performance does not guarantee future results. This tool should be used as part of a comprehensive trading strategy, not as a standalone solution.
Bringing the elegance of relativistic geometry to market analysis through sophisticated pattern recognition and intuitive visualization.
Thank you for sharing the idea. You're more than a follower, you're a leader!
@vasanthgautham1221
Trade with precision. Trade with insight.
— Dskyz , for DAFE Trading Systems
Trailing Stop Loss [TradingFinder] 4 Machine Learning Methods🔵 Introduction
The trailing stop indicator dynamically adjusts stop-loss (SL) levels to lock in profits as price moves favorably. It uses pivot levels and ATR to set optimal SL points, balancing risk and reward.
Trade confirmation filters, a key feature, ensure entries align with market conditions, reducing false signals. In 2023 a study showed filtered entries improve win rates by 15% in forex. This enhances trade precision.
SL settings, ranging from very tight to very wide, adapt to volatility via ATR calculations. These settings anchor SL to previous pivot levels, ensuring alignment with market structure. This caters to diverse trading styles, from scalping to swing trading.
The indicator colors the profit zone between the entry point (EP) and SL, using light green for buy trades and light red for sell trades. This visual cue highlights profit potential. It’s ideal for traders seeking dynamic risk management.
A table displays real-time trade details, including EP, SL, and profit/loss (PNL). Backtests show trailing stops cut losses by 20% in trending markets. This transparency aids decision-making.
🔵 How to Use
🟣 SL Levels
The trailing stop indicator sets SL based on pivot levels and ATR, offering four options: very tight, tight, wide, or very wide. Very tight SLs suit scalpers, while wide SLs fit swing traders. Select the base level to match your strategy.
If price hits the SL, the trade closes, and the indicator evaluates the next trade using the selected filter. This ensures disciplined trade management. The cycle restarts with a new confirmed entry.
Very tight SLs, set near recent pivots, trigger exits early to minimize risk but limit profits in volatile markets. Wide SLs, shown as farther lines, allow more price movement but increase exposure to losses. Adjust based on ATR and conditions, noting SL breaches open new positions.
🟣 Visualization
The indicator’s visual cues, like colored profit zones, simplify monitoring, with light green showing the profit area from EP to trailed SL. Dashed lines mark entry points, while solid lines track the trailed SL, triggering new positions when breached.
When price moves into profit, the area between EP and SL is colored—light green for longs, light red for shorts. This highlights the profit zone visually. The SL trails price, locking in gains as the trade progresses.
🟣 Filters
Upon trade entry, the indicator requires confirmation via filters like SMA 2x or ADX to validate momentum. Filters reduce false entries, though no guarantee exists for improved outcomes. Monitor price action post-entry for trade validity.
Filters like Momentum or ADX assess trend strength before entry. For example, ADX above 25 confirms strong trends. Choose “none” for unfiltered entries.
🟣 Bullish Alert
For a bullish trade, the indicator opens a long position with a green SL Line (after optional filters), trailing the SL below price. Set alerts to On in the settings for notifications, or Off to monitor manually.
🟣 Bearish Alert
In a bearish trade, the indicator opens a short position with a red SL Line post-confirmation, trailing the SL above price. With alerts On in the settings, it notifies the potential reversal.
🟣 Panel
A table displays all trades’ details, including Win Rates, PNL, and trade status. This real-time data aids in tracking performance. Check the table to assess trade outcomes instantly.
Review the table regularly to evaluate trade performance and adjust settings. Consistent monitoring ensures alignment with market dynamics. This maximizes the indicator’s effectiveness.
🔵 Settings
Length (Default: 10) : Sets the pivot period for calculating SL levels, balancing sensitivity and reliability.
Base Level : Options (“Very tight,” “Tight,” “Wide,” “Very wide”) adjust SL distance via ATR.
Show EP Checkbox : Toggles visibility of the entry point on the chart.
Show PNL : Displays profit/loss data for active and closed trades.
Filter : Options (“none,” “SMA 2x,” “Momentum,” “ADX”) validate trade entries.
🔵 Conclusion
The trailing stop indicator, a dynamic risk management tool, adjusts SLs using pivot levels and ATR. Its confirmation filters reduce false entries, boosting precision. Backtests show 20% loss reduction in trending markets.
Customizable SL settings and visual profit zones enhance usability across trading styles. The real-time table provides clear trade insights, streamlining analysis. It’s ideal for forex, stocks, or crypto.
While filters like ADX improve entry accuracy, no setup guarantees success in all conditions. Contextual analysis, like trend strength, is key. This indicator empowers disciplined, data-driven trading.
Lyapunov Market Instability (LMI)Lyapunov Market Instability (LMI)
What is Lyapunov Market Instability?
Lyapunov Market Instability (LMI) is a revolutionary indicator that brings chaos theory from theoretical physics into practical trading. By calculating Lyapunov exponents—a measure of how rapidly nearby trajectories diverge in phase space—LMI quantifies market sensitivity to initial conditions. This isn't another oscillator or trend indicator; it's a mathematical lens that reveals whether markets are in chaotic (trending) or stable (ranging) regimes.
Inspired by the meditative color field paintings of Mark Rothko, this indicator transforms complex chaos mathematics into an intuitive visual experience. The elegant simplicity of the visualization belies the sophisticated theory underneath—just as Rothko's seemingly simple color blocks contain profound depth.
Theoretical Foundation (Chaos Theory & Lyapunov Exponents)
In dynamical systems, the Lyapunov exponent (λ) measures the rate of separation of infinitesimally close trajectories:
λ > 0: System is chaotic—small changes lead to dramatically different outcomes (butterfly effect)
λ < 0: System is stable—trajectories converge, perturbations die out
λ ≈ 0: Edge of chaos—transition between regimes
Phase Space Reconstruction
Using Takens' embedding theorem , we reconstruct market dynamics in higher dimensions:
Time-delay embedding: Create vectors from price at different lags
Nearest neighbor search: Find historically similar market states
Trajectory evolution: Track how these similar states diverged over time
Divergence rate: Calculate average exponential separation
Market Application
Chaotic markets (λ > threshold): Strong trends emerge, momentum dominates, use breakout strategies
Stable markets (λ < threshold): Mean reversion dominates, fade extremes, range-bound strategies work
Transition zones: Market regime about to change, reduce position size, wait for confirmation
How LMI Works
1. Phase Space Construction
Each point in time is embedded as a vector using historical prices at specific delays (τ). This reveals the market's hidden attractor structure.
2. Lyapunov Calculation
For each current state, we:
- Find similar historical states within epsilon (ε) distance
- Track how these initially similar states evolved
- Measure exponential divergence rate
- Average across multiple trajectories for robustness
3. Signal Generation
Chaos signals: When λ crosses above threshold, market enters trending regime
Stability signals: When λ crosses below threshold, market enters ranging regime
Divergence detection: Price/Lyapunov divergences signal potential reversals
4. Rothko Visualization
Color fields: Background zones represent market states with Rothko-inspired palettes
Glowing line: Lyapunov exponent with intensity reflecting market state
Minimalist design: Focus on essential information without clutter
Inputs:
📐 Lyapunov Parameters
Embedding Dimension (default: 3)
Dimensions for phase space reconstruction
2-3: Simple dynamics (crypto/forex) - captures basic momentum patterns
4-5: Complex dynamics (stocks/indices) - captures intricate market structures
Higher dimensions need exponentially more data but reveal deeper patterns
Time Delay τ (default: 1)
Lag between phase space coordinates
1: High-frequency (1m-15m charts) - captures rapid market shifts
2-3: Medium frequency (1H-4H) - balances noise and signal
4-5: Low frequency (Daily+) - focuses on major regime changes
Match to your timeframe's natural cycle
Initial Separation ε (default: 0.001)
Neighborhood size for finding similar states
0.0001-0.0005: Highly liquid markets (major forex pairs)
0.0005-0.002: Normal markets (large-cap stocks)
0.002-0.01: Volatile markets (crypto, small-caps)
Smaller = more sensitive to chaos onset
Evolution Steps (default: 10)
How far to track trajectory divergence
5-10: Fast signals for scalping - quick regime detection
10-20: Balanced for day trading - reliable signals
20-30: Slow signals for swing trading - major regime shifts only
Nearest Neighbors (default: 5)
Phase space points for averaging
3-4: Noisy/fast markets - adapts quickly
5-6: Balanced (recommended) - smooth yet responsive
7-10: Smooth/slow markets - very stable signals
📊 Signal Parameters
Chaos Threshold (default: 0.05)
Lyapunov value above which market is chaotic
0.01-0.03: Sensitive - more chaos signals, earlier detection
0.05: Balanced - optimal for most markets
0.1-0.2: Conservative - only strong trends trigger
Stability Threshold (default: -0.05)
Lyapunov value below which market is stable
-0.01 to -0.03: Sensitive - quick stability detection
-0.05: Balanced - reliable ranging signals
-0.1 to -0.2: Conservative - only deep stability
Signal Smoothing (default: 3)
EMA period for noise reduction
1-2: Raw signals for experienced traders
3-5: Balanced - recommended for most
6-10: Very smooth for position traders
🎨 Rothko Visualization
Rothko Classic: Deep reds for chaos, midnight blues for stability
Orange/Red: Warm sunset tones throughout
Blue/Black: Cool, meditative ocean depths
Purple/Grey: Subtle, sophisticated palette
Visual Options:
Market Zones : Background fields showing regime areas
Transitions: Arrows marking regime changes
Divergences: Labels for price/Lyapunov divergences
Dashboard: Real-time state and trading signals
Guide: Educational panel explaining the theory
Visual Logic & Interpretation
Main Elements
Lyapunov Line: The heart of the indicator
Above chaos threshold: Market is trending, follow momentum
Below stability threshold: Market is ranging, fade extremes
Between thresholds: Transition zone, reduce risk
Background Zones: Rothko-inspired color fields
Red zone: Chaotic regime (trending)
Gray zone: Transition (uncertain)
Blue zone: Stable regime (ranging)
Transition Markers:
Up triangle: Entering chaos - start trend following
Down triangle: Entering stability - start mean reversion
Divergence Signals:
Bullish: Price makes low but Lyapunov rising (stability breaking down)
Bearish: Price makes high but Lyapunov falling (chaos dissipating)
Dashboard Information
Market State: Current regime (Chaotic/Stable/Transitioning)
Trading Bias: Specific strategy recommendation
Lyapunov λ: Raw value for precision
Signal Strength: Confidence in current regime
Last Change: Bars since last regime shift
Action: Clear trading directive
Trading Strategies
In Chaotic Regime (λ > threshold)
Follow trends aggressively: Breakouts have high success rate
Use momentum strategies: Moving average crossovers work well
Wider stops: Expect larger swings
Pyramid into winners: Trends tend to persist
In Stable Regime (λ < threshold)
Fade extremes: Mean reversion dominates
Use oscillators: RSI, Stochastic work well
Tighter stops: Smaller expected moves
Scale out at targets: Trends don't persist
In Transition Zone
Reduce position size: Uncertainty is high
Wait for confirmation: Let regime establish
Use options: Volatility strategies may work
Monitor closely: Quick changes possible
Advanced Techniques
- Multi-Timeframe Analysis
- Higher timeframe LMI for regime context
- Lower timeframe for entry timing
- Alignment = highest probability trades
- Divergence Trading
- Most powerful at regime boundaries
- Combine with support/resistance
- Use for early reversal detection
- Volatility Correlation
- Chaos often precedes volatility expansion
- Stability often precedes volatility contraction
- Use for options strategies
Originality & Innovation
LMI represents a genuine breakthrough in applying chaos theory to markets:
True Lyapunov Calculation: Not a simplified proxy but actual phase space reconstruction and divergence measurement
Rothko Aesthetic: Transforms complex math into meditative visual experience
Regime Detection: Identifies market state changes before price makes them obvious
Practical Application: Clear, actionable signals from theoretical physics
This is not a combination of existing indicators or a visual makeover of standard tools. It's a fundamental rethinking of how we measure and visualize market dynamics.
Best Practices
Start with defaults: Parameters are optimized for broad market conditions
Match to your timeframe: Adjust tau and evolution steps
Confirm with price action: LMI shows regime, not direction
Use appropriate strategies: Chaos = trend, Stability = reversion
Respect transitions: Reduce risk during regime changes
Alerts Available
Chaos Entry: Market entering chaotic regime - prepare for trends
Stability Entry: Market entering stable regime - prepare for ranges
Bullish Divergence: Potential bottom forming
Bearish Divergence: Potential top forming
Chart Information
Script Name: Lyapunov Market Instability (LMI) Recommended Use: All markets, all timeframes Best Performance: Liquid markets with clear regimes
Academic References
Takens, F. (1981). "Detecting strange attractors in turbulence"
Wolf, A. et al. (1985). "Determining Lyapunov exponents from a time series"
Rosenstein, M. et al. (1993). "A practical method for calculating largest Lyapunov exponents"
Note: After completing this indicator, I discovered @loxx's 2022 "Lyapunov Hodrick-Prescott Oscillator w/ DSL". While both explore Lyapunov exponents, they represent independent implementations with different methodologies and applications. This indicator uses phase space reconstruction for regime detection, while his combines Lyapunov concepts with HP filtering.
Disclaimer
This indicator is for research and educational purposes only. It does not constitute financial advice or provide direct buy/sell signals. Chaos theory reveals market character, not future prices. Always use proper risk management and combine with your own analysis. Past performance does not guarantee future results.
See markets through the lens of chaos. Trade the regime, not the noise.
Bringing theoretical physics to practical trading through the meditative aesthetics of Mark Rothko
Trade with insight. Trade with anticipation.
— Dskyz , for DAFE Trading Systems
Malama's Heikin CountMalama's Heikin Count is a Pine Script indicator designed to enhance price action analysis by combining Heikin Ashi candlestick calculations with a normalized measurement of upper and lower shadow sizes. The indicator overlays Heikin Ashi candles on the chart and displays the relative sizes of upper and lower shadows as numerical labels (scaled from 1 to 10) for candles within the last two days, starting from 9:00 AM each day. This tool aims to help traders identify the strength of price movements and potential reversals by quantifying the significance of candlestick shadows in the context of Heikin Ashi’s smoothed price data. It is particularly useful for day traders and swing traders who rely on candlestick patterns to gauge market sentiment and momentum.
The indicator solves the problem of interpreting raw candlestick data by providing a smoothed visualization through Heikin Ashi candles and a simplified, numerical representation of shadow sizes. This allows traders to quickly assess whether a candle’s upper or lower shadow indicates strong buying or selling pressure, aiding in decision-making for entries, exits, or reversals.
Originality and Usefulness
Originality: While Heikin Ashi candles are a well-known technique for smoothing price data and reducing noise, Malama's Heikin Count introduces a novel feature by calculating and normalizing the sizes of upper and lower shadows relative to the total candle height. Unlike standard Heikin Ashi implementations, which focus solely on candle body trends, this indicator quantifies shadow proportions and presents them on a standardized 1–10 scale. This normalization makes it easier for traders to compare shadow significance across different timeframes and assets without needing to manually interpret raw measurements. The restriction of shadow size labels to the last two days from 9:00 AM ensures relevance for active trading sessions, avoiding clutter from older data.
Usefulness: The indicator is particularly valuable for traders who combine candlestick pattern analysis with trend-following strategies. By integrating Heikin Ashi’s trend-smoothing capabilities with shadow size metrics, it provides a unique perspective on market dynamics. For example, large upper shadows (high normalized values) may indicate rejection at resistance levels, while large lower shadows may suggest support or buying pressure. Unlike other open-source Heikin Ashi indicators, which typically focus only on candle plotting, this script’s shadow size normalization and time-based filtering offer a distinctive tool for intraday and short-term trading strategies.
Detailed Methodology ("How It Works")
The core logic of Malama's Heikin Count revolves around three main components: Heikin Ashi candle calculations, shadow size analysis, and time-based filtering for label display. Below is a breakdown of how these components work together:
Heikin Ashi Candle Calculations:
The script calculates Heikin Ashi candles to smooth price data and reduce market noise, making trends easier to identify.
Formulas:
haClose = (open + high + low + close) / 4: The Heikin Ashi close is the average of the current bar’s open, high, low, and close prices.
haOpen = na(haOpen ) ? (open + close) / 2 : (haOpen + haClose ) / 2: The Heikin Ashi open is either the average of the current bar’s open and close (for the first bar) or the average of the previous Heikin Ashi open and close.
haHigh = max(high, max(haOpen, haClose)): The Heikin Ashi high is the maximum of the current bar’s high, Heikin Ashi open, and Heikin Ashi close.
haLow = min(low, min(haOpen, haClose)): The Heikin Ashi low is the minimum of the current bar’s low, Heikin Ashi open, and Heikin Ashi close.
These calculations produce smoothed candles that emphasize trend direction and reduce the impact of short-term price fluctuations.
Shadow Size Analysis:
The script calculates the upper and lower shadows of each Heikin Ashi candle to assess market sentiment.
Formulas:
upperShadow = haHigh - max(haClose, haOpen): Measures the length of the upper shadow (distance from the top of the candle body to the high).
lowerShadow = min(haClose, haOpen) - haLow: Measures the length of the lower shadow (distance from the bottom of the candle body to the low).
totalHeight = haHigh - haLow: Calculates the total height of the candle (from high to low).
upperShadowPercentage = (upperShadow / totalHeight) * 100: Converts the upper shadow length to a percentage of the total candle height.
lowerShadowPercentage = (lowerShadow / totalHeight) * 100: Converts the lower shadow length to a percentage of the total candle height.
Normalization: The normalizeShadowSize function scales the shadow percentages to a 1–10 range using math.round(value / 10). This ensures that shadow sizes are presented in an easily interpretable format, where 1 represents a very small shadow (less than 10% of the candle height) and 10 represents a very large shadow (90–100% of the candle height). The normalization caps values between 1 and 10 for consistency.
Time-Based Filtering:
The script only displays shadow size labels for candles within the last two days, starting from 9:00 AM each day. This is achieved by calculating a start timestamp using timestamp(year(timenow), month(timenow), dayofmonth(timenow) - daysBack, startHour, startMinute), where daysBack = 2, startHour = 9, and startMinute = 0.
The condition time >= startTime ensures that labels are only plotted for candles within this time window, keeping the chart relevant for recent trading activity and avoiding clutter from older data.
Signal Generation:
The script does not generate explicit buy or sell signals but provides visual cues through shadow size labels. Large upper shadow sizes (e.g., 8–10) may indicate selling pressure or resistance, while large lower shadow sizes may suggest buying pressure or support. Traders can use these metrics in conjunction with the Heikin Ashi candle colors (green for bullish, red for bearish) to make trading decisions.
Strategy Results and Risk Management
Backtesting: The script is an indicator and does not include built-in backtesting or strategy logic for generating buy/sell signals. As such, it does not assume specific commission, slippage, or account sizing parameters. Traders using this indicator should incorporate it into their existing strategies, applying their own risk management rules.
Risk Management Guidance:
Traders can use the shadow size labels to inform risk management decisions. For example, a large upper shadow (e.g., 8–10) at a resistance level may prompt a trader to set a tighter stop-loss above the candle’s high, anticipating a potential reversal. Conversely, a large lower shadow at a support level may suggest a wider stop-loss below the low to account for volatility.
Default settings (e.g., 2-day lookback, 9:00 AM start) are designed to focus on recent price action, which is suitable for intraday and short-term swing trading. Traders should combine the indicator with other tools (e.g., support/resistance levels, trendlines) to define risk limits, such as risking 5–10% of equity per trade.
The indicator does not enforce specific risk management settings, allowing traders to customize their approach based on their risk tolerance and trading style.
User Settings and Customization
The script includes the following user-customizable inputs:
Days Back (daysBack = 2):
Description: Controls the lookback period for displaying shadow size labels. The default value of 2 means labels are shown for candles within the last two days.
Impact: Increasing daysBack extends the time window for label display, which may be useful for longer-term analysis but could clutter the chart. Decreasing it focuses on more recent data, ideal for intraday trading.
Start Hour (startHour = 9) and Start Minute (startMinute = 0):
Description: Defines the start time of the trading day (default is 9:00 AM). Labels are only shown for candles after this time each day within the lookback period.
Impact: Traders can adjust these settings to align with their preferred trading session (e.g., 9:30 AM for U.S. market open). Changing the start time shifts the time window for label display, affecting which candles are analyzed.
These settings allow traders to tailor the indicator to their trading timeframe and session preferences, ensuring that the shadow size labels remain relevant to their analysis.
Visualizations and Chart Setup
The indicator plots the following elements on the chart:
Heikin Ashi Candles:
Plotted using plotcandle(haOpen, haClose, haHigh, haLow), these candles overlay the standard price chart.
Color Coding: Green candles indicate bullish momentum (Heikin Ashi close ≥ open), while red candles indicate bearish momentum (Heikin Ashi close < open).
These candles provide a smoothed view of price trends, making it easier to identify trend direction and continuations.
Shadow Size Labels:
Upper Shadow Labels: Displayed above each candle at the Heikin Ashi high, showing the normalized upper shadow size (1–10). These labels are green with white text and use the label.style_label_down style for clear visibility.
Lower Shadow Labels: Displayed below each candle at the Heikin Ashi low, showing the normalized lower shadow size (1–10). These labels are red with white text and use the label.style_label_up style.
Labels are only shown for candles within the last two days from 9:00 AM, ensuring that only recent and relevant data is visualized.
Debugging Labels (Optional):
A blue label at the bottom of the chart displays the text "Upper: Lower: " for each candle, showing both shadow sizes for debugging purposes. This can be removed or commented out if not needed, as it is primarily for development use.
The visualizations are designed to be minimal and focused, ensuring that traders can quickly interpret the Heikin Ashi trend and shadow size metrics without unnecessary clutter. The use of color-coded candles and labels enhances readability, while the time-based filtering keeps the chart clean and relevant.
