Profitunity - Beginner [TC]This indicator aggregates the knowledges of the first level of the Trading Chaos approach by Bill Williams. It uses the Market Facilitation Index (MFI) in conjunction with the type of bar(candle) to generate strong long and strong short signals.
General information
Bars numeration
All bars or candles could be numbered with the following algorithm. If we divide the candle for 3 equal parts from high to low. The highest third have the number 1, the middle one - 2, the lowest one - 3. Hence we can define the first number as the number of the third where the price opened, second - where the price closed. For example, if the price opened at the highest third and closed at the lowest one this candle has the number 13.
Trend defining
Also candles could be divided into three groups according to the trend condition: uptrend, downtrend, sideways. If the middle of the candle's trading range is above the high of the previous candle - it's uptrend candle, if below the low of the previous candle - it's downtrend candle, sideways in other candles.
Profitunity windows
According to Bill Williams MFI has 4 windows - fake, green, fade and squat. I am not going to describe here the methodology of MFI, but one thing you should know that the most valuable windows are green and squat. Green state is an indication of the true move on the market. Squat the sign that the increase in volume have not triggered the trend continuation and reverse is about to happen.
How to use?
You can use this script as the helper in automatic defining the type of candle. Indicator shows only green (green candle color) and squat (red candle color) MFI states. Add script to any timeframe and asset chart to see labels.
The "strong long" label flashes when 3 conditions are met:
1. Squat candle
2. Candle number 13
3. Downtrend candle
"Strong short" label flashes when:
1. Squat candle
2. Candle number 31
3. Uptrend candle
This indicator helps to find the trend reversal points, can be used in conjunction with other TA tools to find the entry points.
Tradingchaos
iTradeAIMS | The Purple MagicThe Magic Purple Line
To put it very simply, the Magic Purple Line is the Trend Line that I use for my trading.
It is a Trend line based on Trading Chaos.
Yes, it is the Red Line of the Bill Williams Alligator but...
It is the Red Line of the 5 times higher time frame
This means you will ALWAYS be in tune with the trend of the higher time frame.
that's very simple.
I arrived at this indicator by using some fractal geometric math logic.
The Redline of Bill Williams Alligator Indicator is calculated by using 8-period smooth moving average with a shift of 5 periods to the right.
Multiply 8 by 5 = 40
Multiple 5 by 5 = 25
But to get it Fractal Geometrically correct, I converted it into the Nearest Fib Numbers.
et voila, you have the Magic Purple Line
How to calculate The Magic Purple Line:
Plot a 34 Smooth Moving Average with 21 Shift
I used it like this.
I take entries using AIMS The Box indicator. I want the box to be always above the purple line for my buy orders and vice versa for shorts
E.g. Tesla Entries Marked on this chart.
Note that all entries are marked as Buy Orders because the price is above the purple line.
Hope this helps improve your trading.
If you like it, please hit the LIIKE button and Follow iTradeAIMS 🎈🎉
iTradeAIMS | The BOX IndicatorIntroduction to iTradeAIMS The Box Indicator
Here I will attempt to give a brief introduction to this amazing indicator that has revolutionised my trading since 2009.
Everything in the universe is energy and energy follows the path of least resistance. When it moves it heavily influenced by a structure.
When energy flows it reacts to the underlying structure. Electricity flows through copper wires easily compared to "my arm".
A river flows smoothly on flat plains of the land but becomes violent when flowing down a mountain. Why is this? Why does it change its behaviour?
The Science of Chaos Brings us here. Everything in the universe has an internal or underlying structure. That structure is often, but not always, hidden.
The Market has an underlying Unseen Structure. And it can be revealed by using this indicator. TSX:TSL
Anatomy of the Box
The iTradeAIMS Boxes are formed using the high and low of the fractals.
A new AIMS Box will be created whenever price makes a new high or low Fractal.
The bottom of the AIMS Box – the Lower AIMS Level - is created when a low Fractal is formed i.e. the low of a candle is lower than two candles to the left and two candles to the right.
What is the Underlying Structure of the Market?
The underlying structure of the Market is Elliott Wave .
And the Underlying Structure of the Elliott Wave is the Fractals.
This BOX is an indicator based on the Fractals.
The Upper and Lower Levels require a minimum of five bars with the top of the box being the upper Fractal; the bottom of the box, the lower Fractal
The AIMS Levels are the high and low of the AIMS Box – the upper and lower Fractals.
This indicator, by itself, provided the concept that revolutionised my trading.
What are the Benefits of Using AIMS iTradeAIMS The Box?
1. Identify Trend:
The Box will also help you identify Trending Markets.
The Stepping Up pattern it creases is an indication of UPTREND .
The Stepping Down pattern indicates DOWNTREND .
2. Identify Entry Points
The Box will help you identify Entry Points into the market.
There are two ways it helps you make entries into the market.
a) breakout entry
b) trend following entry
3. Identify Range-Bound Market
The Box helps identify a sideways range-bound market.
When the box is not creating either a stepping up or stepping down pattern, it usually indicates to a sideways or rangebound market on that time frame.
4. Help you Make Entries: Calculate Correct Positions Size and Risk Size
The BOX is the structure of the market that offers the best method of How to calculate Risk Per Trade based on the market generated information.
Calculate your Entry Level and Stop Loss level using the Box Levels on either side of the box.
Buying the Box:
Set a Buy Order a Point above the Box and Stop Loss a point below the Box Low.
Selling the Box
Set a Sell Order a Point Below the Box Low and Stop Loss a Point Above the Box High.
TSLA Entries and Exits for Tesla Stock
I took this trade on the box high of this stock OII
I shared the Idea on TradingView as a Buy Signal on OII
Check the BitCoin Entry Here
5. Stop Loss Trailing Mechanism to Lock in Profits
The box levels are used for Trailing Stops.
For Long (Buy) Orders use the box low as a stop loss level for trailing and locking-in profits.
For Shorts (Sell) Orders, use the Box High levels for trailing stop and lock in profits.
6. Support and Resistance
The Box Levels (upper and lower) clearly shows support and resistance – where price approached a level and could not go further, forcing it to retrace on itself.
Pay attention to how box levels create ranges and also indicate trends.
How to Use this Indicator with other Indicators?
This indicator is great on its own but even greater if used in conjunction with iTradeAIMS The Wave and The Gator and The Magic Purple (Script Available FREE to use on iTradeAIMS Profile)
> The market always creates an AIMS Box before it turns around.
> Every trend starts and ends with an AIMS Box.
> Entries are always taken on the breakout of the AIMS Box.
How to Get Access to This Script?
Enjoy and accept it as my gift to the TradingView Community from iTradeAIMS | This Indicator is now available to everyone for FREE.
Credits: I learned the method from Bill Williams of Profitunity.com All credits, thanks, gratitude, positive vibes, and prayers goes to Dr Williams 🥇 (RIP) and his family ❤.
Awesome Oscillator (AO) - LogImproved Awesome Oscillator.
* Supports both Logarithm/Linear scale
* Shows divergences on higher timeframes (which it didn't before)
* Twin peaks appear much more frequently
* Less lagging, able to spot the major tops earlier on after huge price spikes/declines (shouldn't make a difference on lower timeframes)
