Индикатор среднего направленного движения (ADX)
rich's golden crossHow It Works:
Rich's Golden Cross plots clear "BUY" signals on your chart when all conditions align, giving you a strategic edge in the markets. Whether you're a swing trader or a long-term investor, this indicator helps you stay ahead of the curve by filtering out noise and focusing on high-quality setups.
Why Choose Rich's Golden Cross?
Multi-Timeframe Analysis: Combines short-term and long-term trends for better accuracy.
Easy-to-Read Signals: Clear buy alerts directly on your chart.
Customizable: Adjust parameters to suit your trading style.
Take your trading to the next level with Rich's Golden Cross—your ultimate tool for spotting golden opportunities in the market.
ADX btw 15-30 and increasingWhen the ADX is between 15-30, it suggests that there’s a trend present but that it isn’t in full-blown momentum mode yet. This gives you the opportunity to enter before the trend becomes extremely strong, allowing for earlier entries in a fresh trend.
An increasing slope of the ADX confirms that the trend is developing into a stronger phase, which provides additional confidence that the trade is likely to continue in the same direction.
This indicator highlights when both of these conditions are met.
ADX w 15 and 30 LinesThis takes the normal ADX with a 15 lookback period and adds horizontal lines at 15 and 30 no matter which ticker you are on. This saves you from having to add the lines to every single instrument.
When the ADX is between 15-30, it suggests that there’s a trend present but that it isn’t in full-blown momentum mode yet. This gives you the opportunity to enter before the trend becomes extremely strong, allowing for earlier entries in a fresh trend.
Invest SMA|MACD|ADX Long Weekly Strategy (BtTL)Diese Strategie kombiniert drei bewährte technische Indikatoren (SMA, MACD und ADX) für präzise Long-Einstiege auf dem Wochenchart.
Hauptmerkmale:
Einstiegssignale basieren auf einer Kombination aus SMA (30), MACD (9,18,9) und ADX (14)
Intelligentes Stop-Loss-Management durch Swing-Low-Erkennung
Trendbestätigung durch ADX > 25
Optimiert für Wochencharts
Konservatives Risikomanagement durch mehrfache Signalbestätigung
Einstiegsbedingungen:
Kurs über SMA
MACD über Signallinie und im positiven Bereich
ADX zeigt starken Trend (>25)
Ausstiegsstrategie:
Stop-Loss wird automatisch am vorletzten Swing-Low gesetzt
Position wird geschlossen, wenn der Kurs unter den SMA fällt
🇬🇧 English:
This strategy combines three proven technical indicators (SMA, MACD, and ADX) for precise long entries on the weekly chart.
Key Features:
Entry signals based on a combination of SMA (30), MACD (9,18,9), and ADX (14)
Intelligent stop-loss management through swing low detection
Trend confirmation using ADX > 25
Optimized for weekly charts
Conservative risk management through multiple signal confirmation
Entry Conditions:
Price above SMA
MACD above signal line and in positive territory
ADX showing strong trend (>25)
Exit Strategy:
Stop-loss automatically set at second-last swing low
Position closes when price falls below SMA
Helicopter Volatility Detector v4This Indicator designed to measure market volatility specifically during reversal phases, while ignoring periods of strong trending movements. It helps traders identify when the market is experiencing frequent and significant price reversals, which are often accompanied by increased volatility.
This indicator is suitable for those who want to understand when there is high volatility in the market, such as when Jerome Powell speaks or economic data is released. It can help identify periods when large leveraged positions are likely to be liquidated.
Strength Measurement -HTStrength Measurement -HT
This indicator provides a comprehensive view of trend strength by calculating the average ADX (Average Directional Index) across multiple timeframes. It helps traders identify strong trends, potential reversals, and confirm signals from other indicators.
Key Features:
Multi-Timeframe Analysis: Analyze trend strength across different timeframes. Choose which timeframes to include in the calculation (5 min, 15 min, 30 min, 1 hour, 4 hour).
Customizable ADX Parameters: Adjust the ADX smoothing (adxlen) and DI length (dilen) parameters to fine-tune the indicator to your preferred settings.
Smoothed Average ADX: The average ADX is smoothed using a Simple Moving Average to reduce noise and provide a clearer picture of the overall trend.
Color-Coded Visualization: The histogram clearly indicates trend direction and strength:
Green: Uptrend
Red: Downtrend
Darker shades: Stronger trend
Lighter shades: Weaker trend
Reference Levels: Includes horizontal lines at 25, 50, and 75 to provide benchmarks for trend strength classification.
Alerts: Set alerts for strong trend up (ADX crossing above 50) and weakening trend (ADX crossing below 25).
How to Use:
Select Timeframes: Choose the timeframes you want to include in the average ADX calculation.
Adjust ADX Parameters: Fine-tune the adxlen and dilen values based on your trading style and the timeframe of the chart.
Identify Strong Trends: Look for histogram bars with darker green or red colors, indicating a strong trend.
Spot Potential Reversals: Watch for changes in histogram color and height, which may suggest a weakening trend or a potential reversal.
Combine with Other Indicators: Use this indicator with other technical analysis tools to confirm trading signals.
Note: This indicator is based on the ADX, which is a lagging indicator.
ADX-DMIThis script manually calculates the Directional Movement Index (DMI) and the Average Directional Index (ADX) using Wilder’s smoothing technique. The DMI indicators are used to assess the strength and direction of a market trend. It includes three main lines: ADX (yellow), DI+ (green), and DI− (red). Traders use these indicators to determine whether a trend is strong and in which direction it is moving.
The process begins by defining the length parameter, which determines how many periods are considered in the calculation. It then calculates the True Range (TR), which is the greatest of three values: the difference between the current high and low, the difference between the current high and the previous close, and the difference between the current low and the previous close. This TR is used to compute the Average True Range (ATR), which smooths out price fluctuations to get a clearer picture of the market’s volatility. Next, the script calculates the +DM (positive directional movement) and -DM (negative directional movement) based on the changes in the highs and lows from one period to the next.
Finally, the script computes the DI+ and DI− values by dividing the smoothed +DM and -DM by the ATR and multiplying by 100 to express them as percentages. The DX value is calculated as the absolute difference between DI+ and DI−, normalized by the sum of both values. The ADX is then derived by smoothing the DX value over the specified length. The three indicators — ADX, DI+, and DI− — are plotted in the lower chart panel, providing traders with visual cues about the trend’s direction (DI+ and DI−) and strength (ADX).
Important Notice:
The use of technical indicators like this one does not guarantee profitable results. This indicator should not be used as a standalone analysis tool. It is essential to combine it with other forms of analysis, such as fundamental analysis, risk management strategies, and awareness of current market conditions. Always conduct thorough research.
Note: The effectiveness of any technical indicator can vary based on market conditions and individual trading styles. It's crucial to test indicators thoroughly using historical data before applying them in live trading scenarios.
Disclaimer:
Trading financial instruments involves substantial risk and may not be suitable for all investors. Past performance is not indicative of future results. This indicator is provided for informational and educational purposes only and should not be considered investment advice. Always conduct your own research before making any trading decisions.
ADX and DI Trend meter and status table IndicatorThis ADX (Average Directional Index) and DI (Directional Indicator) indicator helps identify:
Trend Direction & Strength:
LONG: +DI above -DI with ADX > 20
SHORT: -DI above +DI with ADX > 20
RANGE: ADX < 20 indicates choppy/sideways market
Trading Signals:
Bullish: +DI crosses above -DI (green triangle)
Bearish: -DI crosses below +DI (red triangle)
ADX Strength Levels:
Strong: ADX ≥ 50
Moderate: ADX 30-49
Weak: ADX 20-29
No Trend: ADX < 20
Best Uses:
Trend confirmation before entering trades
Identifying ranging vs trending markets
Exit signal when trend weakens
Works well on multiple timeframes
Most effective in combination with other indicators
The table displays current trend direction and ADX strength in real-time
ADX Breakout Strategy█ OVERVIEW
The ADX Breakout strategy leverages the Average Directional Index (ADX) to identify and execute breakout trades within specified trading sessions. Designed for the NQ and ES 30-minute charts, this strategy aims to capture significant price movements while managing risk through predefined stop losses and trade limits.
This strategy was taken from a strategy that was posted on YouTube. I would link the video, but I believe is is "against house rules".
█ CONCEPTS
The strategy is built upon the following key concepts:
ADX Indicator: Utilizes the ADX to gauge the strength of a trend. Trades are initiated when the ADX value is below a certain threshold, indicating potential for trend development.
Trade Session Management: Limits trading to specific hours to align with optimal market activity periods.
Risk Management: Implements a fixed dollar stop loss and restricts the number of trades per session to control exposure.
█ FEATURES
Customizable Stop Loss: Set your preferred stop loss amount to manage risk effectively.
Trade Session Configuration: Define the trading hours to focus on the most active market periods.
Entry Conditions: Enter long positions when the price breaks above the highest close in the lookback window and the ADX indicates potential trend strength.
Trade Limits: Restrict the number of trades per session to maintain disciplined trading.
Automated Exit: Automatically closes all positions at the end of the trading session to avoid overnight risk.
█ HOW TO USE
Configure Inputs :
Stop Loss ($): Set the maximum loss per trade.
Trade Session: Define the active trading hours.
Highest Lookback Window: Specify the number of bars to consider for the highest close.
Apply the Strategy :
Add the ADX Breakout strategy to your chart on TradingView.
Ensure you are using a 30-minute timeframe for optimal performance.
█ LIMITATIONS
Market Conditions: The strategy is optimized for trending markets and may underperform in sideways or highly volatile conditions.
Timeframe Specific: Designed specifically for 30-minute charts; performance may vary on different timeframes.
Single Asset Focus: Primarily tested on NQ and ES instruments; effectiveness on other symbols is not guaranteed.
█ DISCLAIMER
This ADX Breakout strategy is provided for educational and informational purposes only. It is not financial advice and should not be construed as such. Trading involves significant risk, and you may incur substantial losses. Always perform your own analysis and consider your financial situation before using this or any other trading strategy. The source material for this strategy is publicly available in the comments at the beginning of the code script. This strategy has been published openly for anyone to review and verify its methodology and performance.
TASC 2024.12 Dynamic ADX Histogram█ OVERVIEW
This script introduces a new version of the ADX oscillator, designed by Neil Jon Harrington and featured in the "Revisualizing The ADX Oscillator" article from the December 2024 edition of TASC's Traders' Tips .
█ CONCEPTS
The directional movement index (DMI+ and DMI−) and average directional index (ADX) indicators have long been popular with technical analysts. Developed by J. Welles Wilder in the 1970s, these indicators provide information about the direction and strength of price movements across bars. The DMI+ measures positive price movement, the DMI- measures negative price movement, and the ADX gauges the average strength of price trends. Although these indicators can provide helpful insights into price action and momentum, Neil Jon Harrington argues they are often misunderstood or misapplied.
Harrington's indicator, the Dynamic ADX Histogram (DADX), applies directional information to the ADX based on DMI+ and DMI- values to create a single oscillator centered around 0. The indicator displays the oscillator as a histogram with dynamic colors based on ADX movements and user-defined strength thresholds. The author believes this modification of the ADX and DMI data offers a more intuitive visualization of the information provided by Wilder's calculations.
An additional feature of the DADX is the option to use average (smooth) DMI+ and DMI- values in the oscillator's calculation, which reduces noise and choppiness at the cost of added lag.
█ USAGE
The "ADX Length" input determines the number of bars in the DMI and ADX calculation. The "DMI Smoothing Length" input controls the number of bars in the DMI smoothing calculation. Use a value of 1 for non-smoothed DMI data.
The sign of the DADX indicates the direction of price movements based on the difference between the smoothed DMI+ and DMI- values. The absolute value of the oscillator corresponds to the ADX, representing the trend strength.
The "Low Threshold" and "High Threshold" inputs define the ADX thresholds for categorizing trending, non-trending, and exhaustion states. The low threshold specifies the minimum absolute oscillator value required to indicate a trend, and the high threshold marks the absolute value where trend strength is excessive, possibly suggesting an upcoming consolidation or reversal. The indicator colors the histogram based on these thresholds and changes in the ADX, with brighter colors denoting a strengthening trend and darker colors signaling a weakening trend.
Adaptive Squeeze Momentum StrategyThe Adaptive Squeeze Momentum Strategy is a versatile trading algorithm designed to capitalize on periods of low volatility that often precede significant price movements. By integrating multiple technical indicators and customizable settings, this strategy aims to identify optimal entry and exit points for both long and short positions.
Key Features:
Long/Short Trade Control:
Toggle Options: Easily enable or disable long and short trades according to your trading preferences or market conditions.
Flexible Application: Adapt the strategy for bullish, bearish, or neutral market outlooks.
Squeeze Detection Mechanism:
Bollinger Bands and Keltner Channels: Utilizes the convergence of Bollinger Bands inside Keltner Channels to detect "squeeze" conditions, indicating a potential breakout.
Dynamic Squeeze Length: Calculates the average squeeze duration to adapt to changing market volatility.
Momentum Analysis:
Linear Regression: Applies linear regression to price changes over a specified momentum length to gauge the strength and direction of momentum.
Dynamic Thresholds: Sets momentum thresholds based on standard deviations, allowing for adaptive sensitivity to market movements.
Momentum Multiplier: Adjustable setting to fine-tune the aggressiveness of momentum detection.
Trend Filtering:
Exponential Moving Average (EMA): Implements a trend filter using an EMA to align trades with the prevailing market direction.
Customizable Length: Adjust the EMA length to suit different trading timeframes and assets.
Relative Strength Index (RSI) Filtering:
Overbought/Oversold Signals: Incorporates RSI to avoid entering trades during overextended market conditions.
Adjustable Levels: Set your own RSI oversold and overbought thresholds for personalized signal generation.
Advanced Risk Management:
ATR-Based Stop Loss and Take Profit:
Adaptive Levels: Uses the Average True Range (ATR) to set stop loss and take profit points that adjust to market volatility.
Custom Multipliers: Modify ATR multipliers for both stop loss and take profit to control risk and reward ratios.
Minimum Volatility Filter: Ensures trades are only taken when market volatility exceeds a user-defined minimum, avoiding periods of low activity.
Time-Based Exit:
Holding Period Multiplier: Defines a maximum holding period based on the momentum length to reduce exposure to adverse movements.
Automatic Position Closure: Closes positions after the specified holding period is reached.
Session Filtering:
Trading Session Control: Limits trading to predefined market hours, helping to avoid illiquid periods.
Custom Session Times: Set your preferred trading session to match market openings, closings, or specific timeframes.
Visualization Tools:
Indicator Plots: Displays Bollinger Bands, Keltner Channels, and trend EMA on the chart for visual analysis.
Squeeze Signals: Marks squeeze conditions on the chart, providing clear visual cues for potential trade setups.
Customization Options:
Indicator Parameters: Fine-tune lengths and multipliers for Bollinger Bands, Keltner Channels, momentum calculation, and ATR.
Entry Filters: Choose to use trend and RSI filters to refine trade entries based on your strategy.
Risk Management Settings: Adjust stop loss, take profit, and holding periods to match your risk tolerance.
Trade Direction Control: Enable or disable long and short trades independently to align with your market strategy or compliance requirements.
Time Settings: Modify the trading session times and enable or disable the time filter as needed.
Use Cases:
Trend Traders: Benefit from aligning entries with the broader market trend while capturing breakout movements.
Swing Traders: Exploit periods of low volatility leading to significant price swings.
Risk-Averse Traders: Utilize advanced risk management features to protect capital and manage exposure.
Disclaimer:
This strategy is a tool to assist in trading decisions and should be used in conjunction with other analyses and risk management practices. Past performance is not indicative of future results. Always test the strategy thoroughly and adjust settings to suit your specific trading style and market conditions.
DMI Delta by 0xjcfOverview
This indicator integrates the Directional Movement Index (DMI), Average Directional Index (ADX), and volume analysis into an Oscillator designed to help traders identify divergence-based trading signals. Unlike typical volume or momentum indicators, this combination provides insight into directional momentum and volume intensity, allowing traders to make well-informed decisions based on multiple facets of market behavior.
Purpose and How Components Work Together
By combining DMI and ADX with volume analysis, this indicator helps traders detect when momentum diverges from price action—a common precursor to potential reversals or significant moves. The ADX filter enhances this by distinguishing trending from range-bound conditions, while volume analysis highlights moments of extreme sentiment, such as solid buying or selling. Together, these elements provide traders with a comprehensive view of market strength, directional bias, and volume surges, which help filter out weaker signals.
Key Features
DMI Delta and Oscillator: The DMI indicator measures directional movement by comparing DI+ and DI- values. This difference (DMI Delta) is calculated and displayed as a histogram, visualizing changes in directional bias. When combined with ADX filtering, this histogram helps traders gauge the strength of momentum and spot directional shifts early. For instance, a rising histogram in a bearish price trend might signal a potential bullish reversal.
Volume Analysis with Extremes: Volume is monitored to reveal when market participation is unusually high, using a customizable multiplier to highlight significant volume spikes. These extreme levels are color-coded directly on the histogram, providing visual cues on whether buying or selling interest is particularly strong. Volume analysis adds depth to the directional insights from DMI, allowing traders to differentiate between regular and powerful moves.
ADX Trending Filter: The ADX component filters trends by measuring the overall strength of a price move, with a default threshold of 25. When ADX is above this level, it suggests that the market is trending strongly, making the DMI Delta readings more reliable. Below this threshold, the market is likely range-bound, cautioning traders that signals might not have as much follow-through.
Using the Indicator in Divergence Strategies
This indicator excels in divergence strategies by highlighting moments when price action diverges from directional momentum. Here’s how it aids in decision-making:
Bullish Divergence: If the price is falling to new lows while the DMI Delta histogram rises, it can indicate weakening bearish momentum and signal a potential price reversal to the upside.
Bearish Divergence: Conversely, if prices are climbing but the DMI Delta histogram falls, it may point to waning bullish momentum, suggesting a bearish reversal.
Visual Cues and Customization
The color-coded output enhances usability:
Bright Green/Red: Extreme volume with strong bullish or bearish signals, often at points of high potential for trend continuation or reversal.
Green/Red Shades: These shades reflect trending conditions (bullish or bearish) based on ADX, factoring in volume. Green signals a bullish trend, and red is a bearish trend.
Blue/Orange Shades: Indicates non-trending or weaker conditions, suggesting a more cautious approach in range-bound markets.
Customizable for Diverse Trading Styles
This indicator allows users to adjust settings like the ADX threshold and volume multiplier to optimize performance for various timeframes and strategies. Whether a trader prefers swing trading or intraday scalping, these parameters enable fine-tuning to enhance signal reliability across different market contexts.
Practical Usage Tips
Entry and Exit Signals: Use this indicator in conjunction with price action. Divergences between the price and DMI Delta histogram can reinforce entry or exit decisions.
Adjust Thresholds: Based on backtesting, customize the ADX Trending Threshold and Volume Multiplier to ensure optimal performance on different timeframes or trading styles.
In summary, this indicator is tailored for traders seeking a multi-dimensional approach to market analysis. It blends momentum, trend strength, and volume insights to support divergence-based strategies, helping traders confidently make informed decisions. Remember to validate signals through backtesting and use it alongside price action for the best results.
Daksh RSI POINT to ShootHere are the key points and features of the Pine Script provided:
### 1. **Indicator Settings**:
- The indicator is named **"POINT and Shoot"** and is set for non-overlay (`overlay=false`) on the chart.
- `max_bars_back=4000` is defined, indicating the maximum number of bars that the script can reference.
### 2. **Input Parameters**:
- `Src` (Source): The price source, default is `close`.
- `rsilen` (RSI Length): The length for calculating RSI, default is 20.
- `linestylei`: Style for the trend lines (`Solid` or `Dashed`).
- `linewidth`: Width of the plotted lines, between 1 and 4.
- `showbroken`: Option to show broken trend lines.
- `extendlines`: Option to extend trend lines.
- `showpivot`: Show pivot points (highs and lows).
- `showema`: Show a weighted moving average (WMA) line.
- `len`: Length for calculating WMA, default is 9.
### 3. **RSI Calculation**:
- Calculates a custom RSI value using relative moving averages (`ta.rma`), and optionally uses On-Balance Volume (`ta.obv`) if `indi` is set differently.
- Plots RSI values as a green or red line depending on its position relative to the WMA.
### 4. **Pivot Points**:
- Utilizes the `ta.pivothigh` and `ta.pivotlow` functions to detect pivot highs and lows over the defined period.
- Stores up to 10 recent pivot points for highs and lows.
### 5. **Trend Line Drawing**:
- Lines are drawn based on pivot highs and lows.
- Calculates potential trend lines using linear interpolation and validates them by checking if subsequent bars break or respect the trend.
- If the trend is broken, and `showbroken` is enabled, it draws dotted lines to represent these broken trends.
### 6. **Line Management**:
- Initializes multiple lines (`l1` to `l20` and `t1` to `t20`) and uses these lines for drawing uptrend and downtrend lines.
- The maximum number of lines is set to 20 for uptrends and 20 for downtrends, due to a limit on the total number of lines that can be displayed on the chart.
### 7. **Line Style and Color**:
- Defines different colors for uptrend lines (`ulcolor = color.red`) and downtrend lines (`dlcolor = color.blue`).
- Line styles are determined by user input (`linestyle`) and use either solid or dashed patterns.
- Broken lines use a dotted style to indicate invalidated trends.
### 8. **Pivot Point Plotting**:
- Plots labels "H" and "L" for pivot highs and lows, respectively, to visually indicate turning points on the chart.
### 9. **Utility Functions**:
- Uses helper functions to get the values and positions of the last 10 pivot points, such as `getloval`, `getlopos`, `gethival`, and `gethipos`.
- The script uses custom logic for line placement based on whether the pivots are lower lows or higher highs, with lines adjusted dynamically based on price movement.
### 10. **Plotting and Visuals**:
- The main RSI line is plotted using a color gradient based on its position relative to the WMA.
- Horizontal lines (`hline1` and `hline2`) are used for visual reference at RSI levels of 60 and 40.
- Filled regions between these horizontal lines provide visual cues for potential overbought or oversold zones.
These are the main highlights of the script, which focuses on trend detection, visualization of pivot points, and dynamic line plotting based on price action.
ADX Trend Strength Analyzer█ OVERVIEW
This script implements the Average Directional Index (ADX), a powerful tool used to measure the strength of market trends. It works alongside the Directional Movement Index (DMI), which breaks down the directional market pressure into bullish (+DI) and bearish (-DI) components. The purpose of the ADX is to indicate when the market is in a strong trend, without specifying the direction. This indicator can be especially useful for identifying market trends early and validating trading strategies based on trend-following systems.
The ADX component in this script is based on two key parameters:
ADX Smoothing Length (adxlen), which determines the degree of smoothing for the trend strength.
DI Length (dilen), which defines the look-back period for calculating the directional index values.
Additionally, a horizontal line is plotted at the 30 level, providing a widely used threshold that signifies when a trend is considered strong (above 30).
█ CONCEPTS
Directional Movement (DM): The core idea behind this indicator is the calculation of price movement in terms of bullish and bearish forces. By evaluating the change in highs and lows, the script distinguishes between bullish movement (+DM) and bearish movement (-DM). These values are normalized by dividing them by the True Range (TR), creating the +DI and -DI values.
True Range (TR): The True Range is calculated using the Average True Range (ATR) formula, and it serves to smooth out volatility, ensuring that short-term fluctuations don't distort the long-term trend signal.
ADX Calculation: The ADX is derived from the absolute difference between the +DI and -DI. By smoothing this difference and normalizing it, the ADX is able to measure the overall strength of the trend without regard to whether the market is moving up or down. A rising ADX indicates increasing trend strength, while a falling ADX signals weakening trends.
█ METHODOLOGY
Directional Movement Calculation: The script first determines the upward and downward price movement by comparing changes in the high and low prices. If the upward movement is greater than the downward movement, it registers a bullish signal and vice versa for bearish movement.
True Range Adjustment: The script then applies a smoothing function to normalize these movements by dividing them by the True Range (ATR). This ensures that the trend signal is based on relative, rather than absolute, price movements.
ADX Signal Generation: The final step is to calculate the ADX by applying the Relative Moving Average (RMA) to the difference between +DI and -DI. This produces the ADX value, which is plotted in red, making it easy to visualize shifts in market momentum.
Threshold Line: A blue horizontal line is plotted at 30, which serves as a key reference point. When the ADX is above this line, it indicates a strong trend, whether bullish or bearish.
█ HOW TO USE
Trend Strength: Traders typically use the 30 level as a critical threshold. When the ADX is above 30, it signifies a strong trend, making it a favorable environment for trend-following strategies. Conversely, ADX values below 30 suggest a weak or non-trending market.
+DI and -DI Relationship: The indicator also provides insight into whether the trend is bullish or bearish. When +DI is greater than -DI, the market is considered bullish. When -DI is greater than +DI, the market is considered bearish. While this script focuses on the ADX value itself, the underlying +DI and -DI help interpret the trend direction.
Market Conditions: This indicator is effective in trending markets, but not ideal for choppy or sideways conditions. Traders can use it to determine the best entry and exit points when trends are strong, or to avoid trading in periods of low volatility.
Combining with Other Indicators: The ADX is commonly used in conjunction with oscillators like RSI or moving averages, to confirm the trend strength and avoid false signals.
█ METHOD VARIANTS
This script applies the standard approach for calculating the ADX, but could be adapted with the following variants:
Different Timeframes: The script could be modified to calculate ADX values across higher or lower timeframes, depending on the trader's strategy.
Custom Thresholds: Instead of using the default 30 threshold, traders could adjust the horizontal line to suit their own risk tolerance or market conditions.
RSI 15/60 and ADX PlotIn this script, the buy and sell criteria are based on the Relative Strength Index (RSI) values calculated for two different timeframes: the 15-minute RSI and the hourly RSI. These timeframes are used together to check signals when certain thresholds are crossed, providing confirmation across both short-term and longer-term momentum.
Buy Criteria:
Condition 1:
Hourly RSI > 60: This means the longer-term momentum shows strength.
15-minute RSI crosses above 60: This shows that the shorter-term momentum is catching up and confirms increasing strength.
Condition 2:
15-minute RSI > 60: This indicates that the short-term trend is already strong.
Hourly RSI crosses above 60: This confirms that the longer-term trend is also gaining strength.
Both conditions aim to capture the moments when the market shows increasing strength across both short and long timeframes, signaling a potential buy opportunity.
Sell Criteria:
Condition 1:
Hourly RSI < 40: This indicates that the longer-term trend is weakening.
15-minute RSI crosses below 40: The short-term momentum is also turning down, confirming the weakening trend.
Condition 2:
15-minute RSI < 40: The short-term trend is already weak.
Hourly RSI crosses below 40: The longer-term trend is now confirming the weakness, indicating a potential sell.
These conditions work to identify when the market is showing weakness in both short-term and long-term timeframes, signaling a potential sell opportunity.
ADX Confirmation :
The Average Directional Index (ADX) is a key tool for measuring the strength of a trend. It can be used alongside the RSI to confirm whether a buy or sell signal is occurring in a strong trend or during market consolidation. Here's how ADX can be integrated:
ADX > 25: This indicates a strong trend. Using this threshold, you can confirm buy or sell signals when there is a strong upward or downward movement in the market.
Buy Example: If a buy signal (RSI > 60) is triggered and the ADX is above 25, this confirms that the market is in a strong uptrend, making the buy signal more reliable.
Sell Example: If a sell signal (RSI < 40) is triggered and the ADX is above 25, it confirms a strong downtrend, validating the sell signal.
ADX < 25: This suggests a weak or non-existent trend. In this case, RSI signals might be less reliable since the market could be moving sideways.
Final Approach:
The RSI criteria help identify potential overbought and oversold conditions in both short and long timeframes.
The ADX confirmation ensures that the signals generated are happening during strong trends, increasing the likelihood of successful trades by filtering out weak or choppy market conditions.
This combination of RSI and ADX can help traders make more informed decisions by ensuring both momentum and trend strength align before entering or exiting trades.
Dema DMI | viResearchDema DMI | viResearch
Conceptual Foundation and Innovation
The "Dema DMI" indicator integrates the Double Exponential Moving Average (DEMA) with the Directional Movement Index (DMI), creating a more responsive and precise trend-following system. The DEMA is used to smooth price data while minimizing lag, making it highly effective for trend detection. The DMI, on the other hand, measures the strength and direction of a trend by analyzing positive and negative directional movements. By combining these two elements, the "Dema DMI" offers traders a powerful tool for identifying trend changes and evaluating the strength of ongoing trends. This combination helps filter out noise in price data while maintaining sensitivity to market movements, providing better trend signals and decision-making opportunities.
Technical Composition and Calculation
The "Dema DMI" script uses two main components: the Double Exponential Moving Average (DEMA) and the Directional Movement Index (DMI). The DEMA is applied to both the high and low prices, creating smoothed versions of these prices based on a user-defined length. The DMI is then calculated by comparing changes in the smoothed high and low prices to measure directional movement. Positive directional movement (DM+) and negative directional movement (DM−) are calculated by evaluating whether the price is trending upward or downward, and the Average Directional Index (ADX) is computed to measure the strength of the trend. The ADX is smoothed to provide a more stable signal of trend strength.
Features and User Inputs
The "Dema DMI" script provides several customizable inputs, enabling traders to tailor the indicator to their strategies. The DEMA Length controls the period over which the DEMA is calculated for both high and low prices. The DMI Length sets the window for calculating directional movement, while the ADX Smoothing Length determines how smooth the ADX line appears, making it easier to assess whether a trend is strengthening or weakening. The script also includes customizable bar colors and alert conditions, providing traders with clear visual cues and notifications when a trend change occurs.
Practical Applications
The "Dema DMI" indicator is designed for traders looking to assess trend strength and direction more effectively. The DEMA smooths price movements, while the DMI highlights shifts in directional movement, providing early signals of potential trend reversals. The ADX helps gauge whether a trend is gaining momentum, allowing traders to improve the timing of trade entries and exits. Additionally, the customizable inputs make the indicator adaptable to different market conditions, ensuring its usefulness in both trending and ranging environments.
Advantages and Strategic Value
The "Dema DMI" script offers significant value by merging the smoothing effects of DEMA with the directional analysis of the DMI. This combination reduces the lag commonly associated with trend-following indicators, providing more timely and accurate trend signals. The ADX further enhances the indicator’s utility by measuring the strength of the trend, helping traders filter out weak signals and stay aligned with stronger trends. This makes the "Dema DMI" an ideal tool for traders seeking to improve their trend-following strategies and optimize their market positioning.
Alerts and Visual Cues
The script includes alert conditions that notify traders when a significant trend change occurs. The "Dema DMI Long" alert is triggered when the indicator detects an upward trend, while the "Dema DMI Short" alert signals a potential downward trend. Visual cues, such as changes in the bar color and the difference between positive and negative directional movement, help traders quickly identify trend shifts and act accordingly.
Summary and Usage Tips
The "Dema DMI | viResearch" indicator combines the smoothing benefits of the DEMA with the directional analysis of the DMI, providing traders with a reliable tool for detecting trend changes and confirming trend strength. By incorporating this script into your trading strategy, you can improve your ability to detect early trend reversals, confirm trend direction, and reduce noise in price data. The "Dema DMI" is a flexible and adaptable solution for traders looking to enhance their technical analysis in various market conditions.
Note: Backtests are based on past results and are not indicative of future performance.
Chandelier Exit Strategy with 200 EMA FilterStrategy Name and Purpose
Chandelier Exit Strategy with 200EMA Filter
This strategy uses the Chandelier Exit indicator in combination with a 200-period Exponential Moving Average (EMA) to generate trend-based trading signals. The main purpose of this strategy is to help traders identify high-probability entry points by leveraging the Chandelier Exit for stop loss levels and the EMA for trend confirmation. This strategy aims to provide clear rules for entries and exits, improving overall trading discipline and performance.
Originality and Usefulness
This script integrates two powerful indicators to create a cohesive and effective trading strategy:
Chandelier Exit : This indicator is based on the Average True Range (ATR) and identifies potential stop loss levels. The Chandelier Exit helps manage risk by setting stop loss levels at a distance from the highest high or lowest low over a specified period, multiplied by the ATR. This ensures that the stop loss adapts to market volatility.
200-period Exponential Moving Average (EMA) : The EMA acts as a trend filter. By ensuring trades are only taken in the direction of the overall trend, the strategy improves the probability of success. For long entries, the close price must be above the 200 EMA, indicating a bullish trend. For short entries, the close price must be below the 200 EMA, indicating a bearish trend.
Combining these indicators adds layers of confirmation and risk management, enhancing the strategy's effectiveness. The Chandelier Exit provides dynamic stop loss levels based on market volatility, while the EMA ensures trades align with the prevailing trend.
Entry Conditions
Long Entry
A buy signal is generated by the Chandelier Exit.
The close price is above the 200 EMA, indicating a strong bullish trend.
Short Entry
A sell signal is generated by the Chandelier Exit.
The close price is below the 200 EMA, indicating a strong bearish trend.
Exit Conditions
For long positions: The position is closed when a sell signal is generated by the Chandelier Exit.
For short positions: The position is closed when a buy signal is generated by the Chandelier Exit.
Risk Management
Account Size: 1,000,00 yen
Commission and Slippage: 17 pips commission and 1 pip slippage per trade
Risk per Trade: 10% of account equity
Stop Loss: For long trades, the stop loss is placed slightly below the candle that generated the buy signal. For short trades, the stop loss is placed slightly above the candle that generated the sell signal. The stop loss levels are dynamically adjusted based on the ATR.
Settings Options
ATR Period: Set the period for calculating the ATR to determine the Chandelier Exit levels.
ATR Multiplier: Set the multiplier for ATR to define the distance of stop loss levels from the highest high or lowest low.
Use Close Price for Extremums: Choose whether to use the close price for calculating the extremums.
EMA Period: Set the period for the EMA to adjust the trend filter sensitivity.
Show Buy/Sell Labels: Choose whether to display buy and sell labels on the chart for visual confirmation.
Highlight State: Choose whether to highlight the bullish or bearish state on the chart.
Sufficient Sample Size
The strategy has been backtested with a sufficient sample size to evaluate its performance accurately. This ensures that the strategy's results are statistically significant and reliable.
Notes
This strategy is based on historical data and does not guarantee future results.
Thoroughly backtest and validate results before using in live trading.
Market volatility and other external factors can affect performance and may not yield expected results.
Acknowledgment
This strategy uses the Chandelier Exit indicator. Special thanks to the original contributors for their work on the Chandelier Exit concept.
Clean Chart Explanation
The script is published with a clean chart to ensure that its output is readily identifiable and easy to understand. No other scripts are included on the chart, and any drawings or images used are specifically to illustrate how the script works.
Strategy SEMA SDI WebhookPurpose of the Code:
The strategy utilizes Exponential Moving Averages (EMA) and Smoothed Directional Indicators (SDI) to generate buy and sell signals. It includes features like leverage, take profit, stop loss, and trailing stops. The strategy is intended for backtesting and automating trades based on the specified indicators and conditions.
Key Components and Functionalities:
1.Strategy Settings:
Overlay: The strategy will overlay on the price chart.
Slippage: Set to 1.
Commission Value: Set to 0.035.
Default Quantity Type: Percent of equity.
Default Quantity Value: 50% of equity.
Initial Capital: Set to 1000 units.
Calculation on Order Fills: Enabled.
Process Orders on Close: Enabled.
2.Date and Time Filters:
Inputs for enabling/disabling start and end dates.
Filters to execute strategy only within specified date range.
3.Leverage and Quantity:
Leverage: Adjustable leverage input (default 3).
USD Percentage: Adjustable percentage of equity to use for trades (default 50%).
Initial Capital: Calculated based on leverage and percentage of equity.
4.Take Profit, Stop Loss, and Trailing Stop:
Inputs for enabling/disabling take profit, stop loss, and trailing stop.
Adjustable parameters for take profit percentage (default 25%), stop loss percentage (default 4.8%), and trailing stop percentage (default 1.9%).
Calculations for take profit, stop loss, trailing price, and maximum profit tracking.
5.EMA Calculations:
Fast and slow EMAs.
Smoothed versions of the fast and slow EMAs.
6.SDI Calculations:
Directional movement calculation for positive and negative directional indicators.
Difference between the positive and negative directional indicators, smoothed.
7.Buy/Sell Conditions:
Long (Buy) Condition: Positive DI is greater than negative DI, and fast EMA is greater than slow EMA.
Short (Sell) Condition: Negative DI is greater than positive DI, and fast EMA is less than slow EMA.
8.Strategy Execution:
If buy conditions are met, close any short positions and enter a long position.
If sell conditions are met, close any long positions and enter a short position.
Exit conditions for long and short positions based on take profit, stop loss, and trailing stop levels.
Close all positions if outside the specified date range.
Usage:
This strategy is used to automate trading based on the specified conditions involving EMAs and SDI. It allows backtesting to evaluate performance based on historical data. The strategy includes risk management through take profit, stop loss, and trailing stops to protect gains and limit losses. Traders can customize the parameters to fit their specific trading preferences and risk tolerance. Differently, it can perform leverage analysis and use it as a template.
By using this strategy, traders can systematically execute trades based on technical indicators, helping to remove emotional bias and improve consistency in trading decisions.
Important Note:
This script is provided for educational and template purposes and does not constitute financial advice. Traders and investors should conduct their research and analysis before making any trading decisions.
Filtered MACD with Backtest [UAlgo]The "Filtered MACD with Backtest " indicator is an advanced trading tool designed for the TradingView platform. It combines the Moving Average Convergence Divergence (MACD) with additional filters such as Moving Average (MA) and Average Directional Index (ADX) to enhance trading signals. This indicator aims to provide more reliable entry and exit points by filtering out noise and confirming trends. Additionally, it includes a comprehensive backtesting module to simulate trading strategies and assess their performance based on historical data. The visual backtest module allows traders to see potential trades directly on the chart, making it easier to evaluate the effectiveness of the strategy.
🔶 Customizable Parameters :
Price Source Selection: Users can choose their preferred price source for calculations, providing flexibility in analysis.
Filter Parameters:
MA Filter: Option to use a Moving Average filter with types such as EMA, SMA, WMA, RMA, and VWMA, and a customizable length.
ADX Filter: Option to use an ADX filter with adjustable length and threshold to determine trend strength.
MACD Parameters: Customizable fast length, slow length, and signal smoothing for the MACD indicator.
Backtest Module:
Entry Type: Supports "Buy and Sell", "Buy", and "Sell" strategies.
Stop Loss Types: Choose from ATR-based, fixed point, or X bar high/low stop loss methods.
Reward to Risk Ratio: Set the desired take profit level relative to the stop loss.
Backtest Visuals: Display entry, stop loss, and take profit levels directly on the chart with
colored backgrounds.
Alerts: Configurable alerts for buy and sell signals.
🔶 Filtered MACD : Understanding How Filters Work with ADX and MA
ADX Filter:
The Average Directional Index (ADX) measures the strength of a trend. The script calculates ADX using the user-defined length and applies a threshold value.
Trading Signals with ADX Filter:
Buy Signal: A regular MACD buy signal (crossover of MACD line above the signal line) is only considered valid if the ADX is above the set threshold. This suggests a stronger uptrend to potentially capitalize on.
Sell Signal: Conversely, a regular MACD sell signal (crossunder of MACD line below the signal line) is only considered valid if the ADX is above the threshold, indicating a stronger downtrend for potential shorting opportunities.
Benefits: The ADX filter helps avoid whipsaws or false signals that might occur during choppy market conditions with weak trends.
MA Filter:
You can choose from various Moving Average (MA) types (EMA, SMA, WMA, RMA, VWMA) for the filter. The script calculates the chosen MA based on the user-defined length.
Trading Signals with MA Filter:
Buy Signal: A regular MACD buy signal is only considered valid if the closing price is above the MA value. This suggests a potential uptrend confirmed by the price action staying above the moving average.
Sell Signal: Conversely, a regular MACD sell signal is only considered valid if the closing price is below the MA value. This suggests a potential downtrend confirmed by the price action staying below the moving average.
Benefits: The MA filter helps identify potential trend continuation opportunities by ensuring the price aligns with the chosen moving average direction.
Combining Filters:
You can choose to use either the ADX filter, the MA filter, or both depending on your strategy preference. Using both filters adds an extra layer of confirmation for your signals.
🔶 Backtesting Module
The backtesting module in this script allows you to visually assess how the filtered MACD strategy would have performed on historical data. Here's a deeper dive into its features:
Backtesting Type: You can choose to backtest for buy signals only, sell signals only, or both. This allows you to analyze the strategy's effectiveness in different market conditions.
Stop-Loss Types: You can define how stop-loss orders are placed:
ATR (Average True Range): This uses a volatility measure (ATR) multiplied by a user-defined factor to set the stop-loss level.
Fixed Point: This allows you to specify a fixed dollar amount or percentage value as the stop-loss.
X bar High/Low: This sets the stop-loss at a certain number of bars (defined by the user) above/below the bar's high (for long positions) or low (for short positions).
Reward-to-Risk Ratio: Define the desired ratio between your potential profit and potential loss on each trade. The backtesting module will calculate take-profit levels based on this ratio and the stop-loss placement.
🔶 Disclaimer:
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Strength Measurement -HTThe Strength Measurement -HT indicator is a tool designed to measure the strength and trend of a security using the Average Directional Index (ADX) across multiple time frames. This script averages the ADX values from five different time frames to provide a comprehensive view of the trend's strength, helping traders make more informed decisions.
Key Features:
Multi-Time Frame Analysis: The indicator calculates ADX values from five different time frames (5 minutes, 15 minutes, 30 minutes, 1 hour, and 4 hours) to offer a more holistic view of the market trend.
Trend Strength Visualization: The average ADX value is plotted as a histogram, with colors indicating the trend strength and direction, making it easy to visualize and interpret.
Reference Levels: The script includes horizontal lines at ADX levels 25, 50, and 75 to signify weak, strong, and very strong trends, respectively.
How It Works
Directional Movement Calculation: The script calculates the positive and negative directional movements (DI+) and (DI-) using the true range over a specified period (default is 14 periods).
ADX Calculation: The ADX value is derived from the smoothed moving average of the absolute difference between DI+ and DI-, normalized by their sum.
Multi-Time Frame ADX: ADX values are computed for the 5-minute, 15-minute, 30-minute, 1-hour, and 4-hour time frames.
Average ADX: The script averages the ADX values from the different time frames to generate a single, comprehensive ADX value.
Trend Visualization: The average ADX value is plotted as a histogram with colors indicating:
Gray for weak trends (ADX < 25)
Green for strengthening trends (25 ≤ ADX < 50)
Dark Green for strong trends (ADX ≥ 50)
Light Red for weakening trends (ADX < 25)
Red for strong trends turning weak (ADX ≥ 25)
Usage
Trend Detection: Use the color-coded histogram to quickly identify the trend strength and direction. Green indicates a strengthening trend, while red signifies a weakening trend.
Reference Levels: Utilize the horizontal lines at ADX levels 25, 50, and 75 as reference points to gauge the trend's strength.
ADX < 25 suggests a weak trend.
ADX between 25 and 50 indicates a moderate to strong trend.
ADX > 50 points to a very strong trend.
Multi-Time Frame Insight: Leverage the averaged ADX value to gain insights from multiple time frames, helping you make more informed trading decisions based on a broader market perspective.
Feel free to explore and integrate this indicator into your trading strategy to enhance your market analysis and decision-making process. Happy trading!
ADX and SADX, SDIThe indicator aims to analyze and visualize the Average Directional Index (ADX) and its smoothed versions, along with directional indicators (DI) to help traders identify trend strength and potential buy/sell signals.
Indicator Settings:
The indicator is named "ADX and SADX, SDI" and is set to display prices with a precision of 2 decimal places.
Users can customize the ADX smoothing length, DI length, ADX smoothing period, and DI smoothing period through input variables.
Directional Movement (DM) Calculation:
The function dirmov calculates the positive and negative directional movements (DM) and the smoothed values of the positive directional index (DI+) and negative directional index (DI-).
This is done using the average true range (ATR) to normalize the DM values.
Average Directional Index (ADX) Calculation:
The function adx calculates the ADX, which measures the strength of a trend.
It uses the DI+ and DI- values to compute the ADX value.
Smoothed ADX and DI Calculation:
The ADX values are further smoothed using a simple moving average (SMA).
The DI difference is also smoothed and used to determine the trend direction.
Buy and Sell Signals:
A buy signal is generated when the DI+ crosses above DI- and the smoothed DI difference is increasing.
A sell signal is generated when the DI- crosses above DI+ and the smoothed DI difference is decreasing.
Plotting:
The ADX, smoothed ADX, smoothed DI difference (SPM), DI+, and DI- values are plotted on the chart.
Horizontal lines are drawn to indicate threshold levels (e.g., level 22).
Background and bar colors change based on buy (lime) and sell (maroon) signals to visually indicate these conditions.
Purpose of the Code:
This Pine Script code is used to create a custom indicator on TradingView that helps traders identify the strength and direction of a trend. The Average Directional Index (ADX) is used to measure trend strength, while the Directional Indicators (DI+ and DI-) are used to determine the direction of the trend. The smoothed versions of these indicators (SADX and SDI) provide additional confirmation and smoothing to reduce noise and false signals. Traders can use the buy and sell signals generated by this indicator to make informed trading decisions based on the trend strength and direction.
Important Note:
This script is provided for educational purposes and does not constitute financial advice. Traders and investors should conduct their research and analysis before making any trading decisions.
Trend Momentum Strength Indicator, Built for Pairs TradingOverview:
This script combines multiple indicators to provide a comprehensive analysis of both trend strength and trend momentum. It is tailored specifically for pairs trading strategies but can also be used for other trading strategies.
Benefit of Comprehensive Analysis:
Having an indicator that evaluates both trend strength and trend momentum is crucial for traders looking to make informed decisions. It allows traders to not only identify the direction and intensity of a trend but also gauge the momentum behind it. This dual capability helps in confirming potential trade opportunities, whether for entering trades with strong trends or considering reversals during overbought or oversold conditions. By integrating both aspects into one tool, traders can gain a holistic view of market dynamics, enhancing their ability to time entries and manage risk effectively.
Features:
* Trend Strength:
Enhanced ADX Formula: The script includes modifications to the standard ADX formula along with DI+ and DI- to provide more responsive trend strength readings.
Directional Indicators: DI+ (green line) indicates positive directional movement, while DI- (red line) indicates negative directional movement.
Trend Momentum:
Modified Stochastic Indicators: The script uses %K and %D indicators, modified and combined with ADX to give a clear indication of trend momentum.
Momentum Strength: This helps determine the strength and direction of the momentum.
Trading Signals:
Combining Indicators: The script combines ADX, DI+, DI-, %K, and %D to generate comprehensive trading signals.
Optimal Entry Points: Designed to identify optimal entry points for trades, particularly in pairs trading.
Colored Area at Bottom:
This area provides two easy-to-read functions:
Color:
Green: Upward momentum (ratio above 1)
Red: Downward momentum (ratio below 1)
Height:
Higher in green: Stronger upward momentum
Lower in red: Stronger downward momentum
Legend:
Green Line: DI+ (Positive)
Red Line: DI- (Negative)
Black Line: ADX
How to Read This Indicator:
1) Trend Direction:
DI+ above DI-: Indicates an upward trend.
DI- above DI+: Indicates a downward trend.
2) Trend Strength:
ADX below 20: Indicates a neutral trend.
ADX between 20 and 25: Indicates a weak trend.
ADX above 25: Indicates a strong trend.
Trading Signals in Pairs Trading:
Neutral Trend: Ideal for pairs trading when no strong trend is detected.
Overbought/Oversold: Uses %K and %D to identify overbought/oversold conditions that support trade decisions.
Entry Signals: Green signals for long positions, red signals for short positions, based on combined criteria of neutral trend strength and supportive momentum.
Application in Pairs Trading:
Neutral trend: In pairs trading strategies, where neutral movement is often sought, this indicator provides signals that are especially relevant during periods of neutral trend strength and supportive momentum, aiding traders in identifying optimal entry
Risk Management: Combining signals from ADX, DI+, DI-, %K, and %D helps traders make more informed decisions regarding entry points, enhancing risk management.
Example Chart (The indicator is on the upper right corner):
Clean Presentation: The chart only includes the necessary elements to demonstrate the indicator’s functionality.
Demonstrates: Overbought/oversold conditions, upward/downward/no momentum, and trading signals with/without specific scenarios.
