SNR Breakout Retest Test and RejectionCara Membaca Indikator :
Cara Membaca Indikator :
1. Level Support dan Resistance:
--> Support: Ditandai dengan garis horizontal yang menunjukkan area di mana harga kemungkinan akan berhenti turun dan berbalik naik. Dalam kode, level support dihitung menggunakan pivot low dari harga terendah dalam periode tertentu (input_lookback).
--> Resistance: Ditandai dengan garis horizontal yang menunjukkan area di mana harga kemungkinan akan berhenti naik dan berbalik turun. Level resistance dihitung menggunakan pivot high dari harga tertinggi dalam periode tertentu.
--> Warna untuk support adalah merah tua, sedangkan warna untuk resistance adalah hijau tua.
2. Label dan Box:
--> Indikator menggambar box di sekitar level support dan resistance untuk menandai area tersebut dengan jelas.
--> Label "Br" (Breakout) muncul ketika terjadi breakout dari level support atau resistance. Ini memberi sinyal bahwa harga telah menembus level tersebut.
3. Retest (Pengujian Kembali):
--> Setelah terjadinya breakout, indikator ini juga dapat mendeteksi kondisi retest, yaitu saat harga kembali menguji level support atau resistance yang telah ditembus.
--> Label "Potential Retest" muncul jika ada potensi harga kembali ke level support atau resistance.
--> Label "Retest Resistance" atau "Retest Support" menunjukkan bahwa harga telah menguji level tersebut kembali setelah breakout.
4. Penggunaan dalam Trading
--> Entry Buy: Ketika harga mendekati level support dan ada sinyal bullish, misalnya setelah retest pada level support.
--> Entry Sell: Ketika harga mendekati level resistance dan ada sinyal bearish, misalnya setelah retest pada level resistance.
--> Breakout Trading: Jika terjadi breakout dari level support atau resistance, trader dapat mencari peluang untuk masuk ke posisi sesuai arah breakout.
Поддержка и сопротивление
Reversal SignalCara Membaca Indikator :
1. Pola Pembalikan Bullish (Bullish Reversal):
--> Indikator mendeteksi pola bullish reversal dengan memeriksa apakah sebagian besar candle dalam pola memiliki tubuh bearish, diikuti oleh candle bullish yang menandakan potensi pembalikan.
--> Ketika pola bullish reversal terdeteksi:
a. Label "Bullish Reversal" akan muncul di bawah candle yang mengindikasikan pembalikan arah ke atas.
b. Simbol panah naik "▲" juga ditampilkan di bawah candle untuk menunjukkan titik masuk potensial.
--> Garis horizontal digambar pada batas atas dan bawah pola sebagai level support.
--> Jika harga menembus level tersebut, indikator akan menunjukkan apakah pola tersebut dikonfirmasi atau gagal.
2. Pola Pembalikan Bearish (Bearish Reversal):
--> Indikator mendeteksi pola bearish reversal dengan memeriksa apakah sebagian besar candle dalam pola memiliki tubuh bullish, diikuti oleh candle bearish yang menandakan potensi pembalikan ke bawah.
--> Ketika pola bearish reversal terdeteksi:
a. Label "Bearish Reversal" akan muncul di atas candle yang mengindikasikan pembalikan arah ke bawah.
b. Simbol panah turun "▼" juga ditampilkan di atas candle untuk menunjukkan titik masuk potensial.
--> Garis horizontal digambar pada batas atas dan bawah pola sebagai level resistance.
--> Jika harga menembus level tersebut, indikator akan menunjukkan apakah pola tersebut dikonfirmasi atau gagal.
3. Level Support dan Resistance:
--> Indikator menampilkan garis horizontal di atas dan di bawah pola pembalikan sebagai level support (untuk bullish reversal) atau resistance (untuk bearish reversal). Level ini bisa dianggap sebagai area potensi harga berbalik arah.
--> Anda dapat mengatur garis sebagai "Zone" untuk area support/resistance atau "Level" untuk garis tunggal di dalam pengaturan indikator.
Fibonacci Moving Average PlusFibonacci Moving Average Plus is a sophisticated technical indicator that employs the first 15 numbers of the Fibonacci sequence to create dynamic moving average channels. This indicator aims to capture both immediate and long-term price movements by calculating Exponential Moving Averages (EMAs) based on these Fibonacci values. By using Fibonacci-based moving averages for both high and low price points, the indicator generates a visual channel that reflects the ebb and flow of market trends, acting as potential zones of support and resistance. Additionally, the indicator provides midline, retracement, and extension levels rooted in Fibonacci ratios, which are frequently observed as key levels for reversals or trend continuation.
Ideology Behind Using Fibonacci Sequence-Based Moving Averages
The Fibonacci sequence, known for its mathematical harmony and prevalence in natural patterns, is widely utilized in technical analysis to identify potential turning points in markets. In this indicator, the first 15 Fibonacci numbers (5, 8, 13, 21, etc.) are used as the lookback periods for EMAs to capture different layers of market sentiment. These moving averages represent timeframes that are theoretically in alignment with the natural rhythms of market cycles, where key levels—often coinciding with Fibonacci numbers—can act as magnetic points for price.
The Fibonacci high and low channels aim to encapsulate price action, giving traders a sense of whether the market is trending, consolidating, or experiencing reversal pressure. These levels, grounded in both mathematics and market psychology, help traders spot areas where price might face resistance or find support.
Key Features
Fibonacci Moving Average High and Low: This indicator calculates the high and low EMAs based on Fibonacci sequence numbers (e.g., 5, 8, 13, etc.) for enhanced trend analysis.
Golden Pocket Retracement (GPR) and Extension (GPE) Bands: Displays common Fibonacci retracement and extension levels (0.618, 0.65 for retracement, and 1.618, 1.65 for extension).
Midline: Plots the average of the Fibonacci high and low to act as an additional reference level.
Stop-Loss Levels: Provides suggested stop-loss levels based on Fibonacci levels for both long and short positions.
Basic User Guide
Adjust Input Settings:
Input Timeframe: Set a specific timeframe for the Fibonacci moving average calculation, separate from the chart's primary timeframe.
Show Fibonacci MA High/Low: Toggle the visibility of the high and low Fibonacci moving averages.
Show Mid Line: Display a midline for added trend reference.
Show Golden Pocket Bands: Choose to display retracement or extension bands for potential support or resistance zones.
Show Stop-Loss Levels: Enable to visualize potential stop-loss levels for both long and short trades.
Interpretation:
Fibonacci MA High and Low: Use these lines to gauge the general trend. When the price is above both, it may indicate an uptrend; below both, a downtrend.
Golden Pocket Retracement: This zone (between 0.618 and 0.65) is often a key level for potential reversals or support/resistance.
Golden Pocket Extension: The 1.618 and 1.65 levels can indicate potential profit-taking or trend exhaustion points.
Stop-Loss Levels: The calculated stop-loss levels (long SL below and short SL above) can aid in risk management.
Customization:
You can customize the appearance and visibility of each component through the input settings to fit your specific strategy and visual preferences.
This indicator should be used alongside other technical analysis tools to provide a more comprehensive trading approach.
This Indicator would not exist without the original contributions and blessing from Sofien Kaabar
Fibonacci RetracmentCara Membaca Indikator :
1. Level Fibonacci
--> Indikator ini menampilkan beberapa level Fibonacci pada grafik harga, seperti level 0.236, 0.382, 0.5, 0.618, dan lainnya. Setiap level memiliki arti penting dalam analisis teknikal. Level ini membantu mengidentifikasi area potensi support dan resistance.
2. Pengaturan Level:
--> parameter input yang dapat Anda aktifkan atau nonaktifkan sesuai keperluan. Jika aktif, level tersebut akan ditampilkan pada grafik.
--> Nilai level Fibonacci secara spesifik. Contoh: value_0_382 memiliki nilai default 0.382 (atau 38.2%).
--> Warna Level: Setiap level Fibonacci diatur dengan warna yang berbeda. Ini membantu membedakan setiap level dengan jelas pada grafik. Warna bisa diatur sesuai keinginan melalui input color_0, color_0_236, color_0_382, dan seterusnya.
3. Label Level:
--> Teks label pada level-level Fibonacci menampilkan nilai persentase (misalnya, 23.6%, 38.2%) atau harga yang sesuai dengan level tersebut. Label ini membantu dalam mengidentifikasi tingkat retracement dengan cepat.
4. Penanda Sinyal:
--> Setiap kali harga mendekati atau melewati suatu level Fibonacci, indikator akan mengirimkan sinyal peringatan (alert) dengan teks seperti "Autofib: crossing level 0.618". Ini berguna untuk trader yang ingin mengetahui ketika harga menyentuh level-level Fibonacci.
--> Menggunakan Level Ekstensi: Selain level retracement yang umum, indikator ini juga menyediakan level ekstensi seperti 1.618, 2.618, 3.618, yang berguna untuk memperkirakan titik potensi pergerakan lanjutan.
Support ResistenceCara Membaca Indikator :
1. Level Support dan Resistance:
--> Support: Ditandai dengan garis horizontal yang menunjukkan area di mana harga kemungkinan akan berhenti turun dan berbalik naik. Dalam kode, level support dihitung menggunakan pivot low dari harga terendah dalam periode tertentu (input_lookback).
--> Resistance: Ditandai dengan garis horizontal yang menunjukkan area di mana harga kemungkinan akan berhenti naik dan berbalik turun. Level resistance dihitung menggunakan pivot high dari harga tertinggi dalam periode tertentu.
--> Warna untuk support adalah merah tua, sedangkan warna untuk resistance adalah hijau tua.
2. Label dan Box:
--> Indikator menggambar box di sekitar level support dan resistance untuk menandai area tersebut dengan jelas.
--> Label "Br" (Breakout) muncul ketika terjadi breakout dari level support atau resistance. Ini memberi sinyal bahwa harga telah menembus level tersebut.
3. Retest (Pengujian Kembali):
--> Setelah terjadinya breakout, indikator ini juga dapat mendeteksi kondisi retest, yaitu saat harga kembali menguji level support atau resistance yang telah ditembus.
--> Label "Potential Retest" muncul jika ada potensi harga kembali ke level support atau resistance.
--> Label "Retest Resistance" atau "Retest Support" menunjukkan bahwa harga telah menguji level tersebut kembali setelah breakout.
4. Penggunaan dalam Trading
--> Entry Buy: Ketika harga mendekati level support dan ada sinyal bullish, misalnya setelah retest pada level support.
--> Entry Sell: Ketika harga mendekati level resistance dan ada sinyal bearish, misalnya setelah retest pada level resistance.
--> Breakout Trading: Jika terjadi breakout dari level support atau resistance, trader dapat mencari peluang untuk masuk ke posisi sesuai arah breakout.
4 Days High/Low + Current Day Dynamic High/LowThis script helps to configure current Day dynamic High/Low as well as Last 4 Days Highs/Lows.
Accumulation Distribution HistogramCara Membaca Indikator :
1. Analisis Tren Volume:
--> Volume yang Disesuaikan :
a. Jika base_price_vol berwarna hijau muda, ini menunjukkan bahwa volume perdagangan mendukung kenaikan harga, mengindikasikan adanya potensi akumulasi atau dorongan bullish.
b. Jika base_price_vol berwarna merah muda, ini menunjukkan adanya distribusi atau tekanan jual, mengindikasikan potensi bearish.
2. Identifikasi Akumulasi dan Distribusi:
--> Base A/D Volume :
a. Histogram yang berwarna hijau gelap menunjukkan bahwa akumulasi lebih dominan, menandakan potensi tren bullish.
b. Histogram yang berwarna merah gelap menunjukkan bahwa distribusi lebih dominan, menandakan potensi tren bearish.
3. Konfirmasi dengan EMA:
--> EMA dari Volume :
a. Digunakan untuk melihat tren volume secara umum. Ketika harga dan volume bergerak di atas EMA volume, ini menunjukkan penguatan tren bullish.
--> EMA dari A/D Volume :
a. Memberikan pandangan lebih jangka panjang terkait tren akumulasi dan distribusi. Ketika histogram base_AD berada di atas EMA-nya, ini mengindikasikan akumulasi berkelanjutan (potensi bullish). Jika berada di bawah EMA, ini menunjukkan distribusi berkelanjutan (potensi bearish).
4. Zero Line:
--> Garis nol digunakan sebagai patokan untuk melihat apakah nilai base_AD dan base_price_vol berada di zona positif atau negatif. Ketika berada di atas nol, ada kecenderungan akumulasi; ketika di bawah nol, ada kecenderungan distribusi.
5. Menggunakan sebagai Sinyal Pembalikan atau Kelanjutan:
--> Ketika yang berwarna hijau gelap (akumulasi) mulai berkurang atau bergeser ke warna merah gelap (distribusi), ini bisa menjadi tanda awal pembalikan ke arah bearish.
--> Sebaliknya, jika volume yang tadinya dominan merah gelap (distribusi) bergeser ke warna hijau gelap, ini menunjukkan potensi perubahan ke arah bullish.
Accumulation Distribution CloudCara Membaca Indikator :
1. Identifikasi Tren Akumulasi dan Distribusi:
--> Arah Akumulasi (Bullish):
a. Jika TAD berada di atas EMA dan margin yang ditentukan, indikator ini menunjukkan tren akumulasi (pembelian). Awan akan berwarna hijau tua saat ini terjadi.
--> Arah Distribusi (Bearish):
a. Jika TAD berada di bawah EMA dan margin yang ditentukan, indikator ini menunjukkan tren distribusi (penjualan). Awan akan berwarna merah tua saat ini terjadi.
--> Tidak Ada Arah yang Jelas (Undecided):
a. Jika TAD berada dalam margin sekitar EMA, ini menunjukkan ketidakpastian dalam arah. Awan akan berwarna emas.
b. Menggunakan Awan untuk Support dan Resistance:
--> Cloud dapat digunakan sebagai area support atau resistance:
--> Ketika harga bergerak di atas cloud, ini menunjukkan kekuatan dalam akumulasi.
--> Ketika harga berada di bawah cloud, ini menunjukkan adanya tekanan distribusi.
--> Ketika harga mendekati EMA atau awan yang sedang berubah warna, ini bisa menjadi area konsolidasi atau persiapan untuk pembalikan tren.
3. Konfirmasi Tren:
--> Anda bisa menggunakan perubahan warna cloud sebagai konfirmasi tren:
a. Warna hijau pada cloud mengindikasikan tren bullish.
b. Warna merah pada cloud mengindikasikan tren bearish.
c. Warna emas menunjukkan fase transisi atau ketidakpastian, di mana pasar mungkin bergerak sideways atau menunggu katalis untuk menentukan arah.
4. Interpretasi Garis EMA:
--> Garis EMA di sini membantu dalam memberikan sinyal tambahan:
Ketika TAD memotong di atas EMA, ini dapat menjadi sinyal bahwa tren bullish atau akumulasi sedang terjadi.
--> Sebaliknya, ketika TAD memotong di bawah EMA, ini dapat menandakan dimulainya tren bearish atau distribusi.
Key Support & Resistance Level IndicatorThis script is used to detect key support and resistance zones for the current price. The script uses a variety of formulas to calculate these zones a combination of the following:
-Local high and lows over various time intervals
-Weighted averages for multiple time intervals
-Frequency of price rejection at various price levels
-The red box indicates the next key resistance zone above the current price
-The green box indicates the next key support zone below the current price
Chessboard Support & ResistanceThe “Chessboard Support & Resistance” indicator is designed to assist traders in visualizing key levels of support and resistance on a chart by employing ATR (Average True Range) to create dynamic horizontal zones. This indicator automatically plots robust support and resistance bands that can help identify potential areas where price may reverse, consolidate, or react. These levels are particularly beneficial for traders who employ concepts like Smart Money analysis, as they illustrate zones where institutional trading activity might occur.
How It Works:
• The indicator uses ATR-based calculations to determine the placement of the support and resistance zones. This approach accounts for market volatility, making the zones adaptive to changing conditions.
• The Zone Thickness parameter allows users to customize the width of the plotted zones, enhancing visibility and fitting them to their specific trading style.
• The support and resistance zones extend horizontally across the chart, providing clear reference points for potential price reactions.
Practical Application:
• Trend Analysis: Identify areas of significant price resistance and support to understand potential turning points or trends in the market.
• Risk Management: Use these zones to better inform stop-loss placements or set profit targets.
• Confirmation Tool: Combine the indicator with other technical analysis tools for confirmation of potential trade entries or exits.
Customization Options:
• Change the colors of the support and resistance zones for better integration with different chart themes.
• Adjust the ATR Length and Multiplier to fine-tune the sensitivity of the zones based on personal preferences and the characteristics of the asset being analyzed.
Disclaimer:
This indicator is for educational and informational purposes only. It is not intended to serve as investment advice or a recommendation to buy or sell any financial instrument. Always perform your own research and consider consulting with a financial professional before making trading decisions. Trading involves significant risk, and past performance does not guarantee future results.
Checkmate Multi-timeframe Trend Analysis [Rogers1906]The “Checkmate Multi-timeframe Trend Analysis ” is a comprehensive Pine Script™-based indicator designed to enhance technical trading strategies by integrating multiple technical analysis components. This tool serves as a robust companion for traders aiming to identify trends, shifts in momentum, and potential buy/sell signals with greater confidence. The tool applies various technical concepts such as moving averages, supply and demand zones, momentum oscillators, and linear regression for trend forecasting.
Components and Features:
1. EMA Line:
• Definition: The indicator calculates a 7-period Exponential Moving Average (EMA) to track the current positioning of price in relation to its recent average.
• Purpose: The EMA provides insights into the short-term trend direction and potential support/resistance levels.
2. Supply and Demand Zones:
• Definition: Uses a 20-period lookback to identify recent highs (supply) and recent lows (demand), which are plotted on the chart as zones.
• Purpose: These zones represent critical price levels where potential reversals or breakouts may occur, assisting in anticipating significant market movements.
3. Candle Coloring Based on Stochastic RSI and Williams %R:
• Definition: Changes the color of candles according to overbought/oversold conditions detected by the Stochastic RSI and Williams %R indicators.
• Purpose: Candle colors reflect current market sentiment, helping traders quickly identify key moments for entering or exiting trades based on momentum shifts.
• Color Definitions:
• Color 0 (Change of Momentum): Indicates a potential shift or pause in momentum.
• Color 1 (Bearish Reversal): Signals a reversal pattern to a bearish trend.
• Color 2 (Bullish Reversal): Signals a reversal pattern to a bullish trend.
• Color 3 (Bullish Confirmation Candle): Confirms continued bullish momentum.
• Color 4 (Bearish Confirmation Candle): Confirms continued bearish momentum.
4. Machine Learning Trendline:
• Definition: A linear regression line serves as a simplified machine learning trend estimator plotted over a user-defined period.
• Purpose: This line provides a visual cue for understanding overall price direction and trend strength, aiding in the anticipation of future price action.
5. Slingshot Momentum Tracker:
• Definition: Utilizes a Rate of Change (ROC) indicator to track momentum shifts, displaying buy/sell points when the momentum crosses the zero line.
• Purpose: Marks potential buy or sell moments, visually indicated on the chart, to help traders make timely decisions based on market momentum changes.
Disclaimer:
This indicator is designed for educational and informational purposes only and should not be considered as financial advice. Trading involves significant risk, and past performance does not guarantee future results. It is essential to perform your own due diligence before making any financial decisions. As markets shift, so must trading strategies. Use this tool as part of a comprehensive trading plan that includes risk management and continuous evaluation.
Volume Profile Heatmap 2.0The "Enhanced Volume Profile Heatmap" is a powerful Pine Script indicator designed for advanced volume analysis on TradingView charts. It creates a dynamic heatmap of volume distribution across a defined price range, enabling traders to pinpoint significant trading levels and understand price action more deeply.
Key Features:
Configurable Parameters:
Number of Bins (numBins): Defines the resolution of the heatmap by dividing the price range into multiple levels. More bins provide higher granularity.
Lookback Period (lookback): Sets the historical period over which the volume profile is calculated.
Price Range Calculation:
Calculates the highest and lowest prices over the lookback period, defining the boundaries for volume distribution.
Volume Allocation Across Price Levels:
The price range is divided into "bins" where each bin represents a specific price level.
For each price within the lookback period, the corresponding volume is allocated to its bin, building a comprehensive distribution of volume per price level.
Volume Normalization and Heatmap Visualization:
Volume for each bin is normalized based on the highest volume bin, creating a gradient effect to visually represent high and low-volume areas.
A heatmap color scheme is applied, where low volume appears redder and high volume appears greener, emphasizing critical price levels.
Visual Representation:
Each bin’s volume is depicted as a horizontal line with varying color intensity, creating a heatmap effect directly over the price chart.
Purpose:
The Enhanced Volume Profile Heatmap is ideal for traders looking to identify high-activity trading zones, which often act as strong support or resistance. By visualizing where trading activity concentrates, users can gain insights into potential areas of interest, allowing for more informed entry and exit decisions.
This indicator is a unique tool for volume-based analysis, helping traders understand underlying market sentiment and positioning across different price levels in a clear, intuitive way.
IQ Zones [TradingIQ]Hey Traders!
Introducing "IQ Zones".
"IQ Zones" is an indicator that combines support and resistance identification with volume, the "value area" of a candlestick to be exact. IQ Zones identifies turning points in the market; however, the candlestick high or low that formed the key turning point is not necessarily distinguished as the support/resistance area. Instead, the script looks into the bar at lower timeframes and calculates the value area of the candlestick that formed the support or resistance level. Therefore, any lines protruding from a candlestick reflect the value area of that candlestick. These levels (value area high and value area low) are marked on the candlestick as a support/resistance level. If the level formed on high volume it's marked as an "IQ Zone".
Additionally, IQ Zones presents a heat map to show volume intensity at nearby price areas. The heatmap is a product of the Volume Profile (IQ Profile) located on the right of the chart.
The IQ Profile is a segmented volume profile. Recent price is split into fifths (customizable), and individual volume profiles are calculated for all segmented price areas. Price is split into more than one segment to avoid a situation where volume in a ranging price zone far surpasses all other recent price areas - creating an "unusable" volume profile that doesn't offer helpful insights. If desired, you can set the segmenting option to "1" to calculate one unified volume profile for the entire price range.
The image above shows IQ Zones in action!
Core Features of IQ Zones
Value Area Support and Resistance Levels
Segmented volume profile for the recent trading period
Volume intensity heatmap
Support and resistance levels in high volume intensity may be more significant as price stoppers
The image above explains the labels marked along the y-axis of the IQ Profile.
The "more green" a price area/label is, the higher the volume intensity at the marked support/resistance area.
The image above further explains line lines protruding from the IQ Profile.
For this example, the value area of the candlestick (where most trading action occurred) is quite far from the high price of the candlestick that formed a resistance level! Using the value area of a candlestick that marks a key turning point to draw support/resistance offers insight into where the majority of trading action took place when the support/resistance level was forming!
Additionally, you can hover your mouse over the IQ Zone labels (triangles pointing up or down) to see the prices of the value area for the support/resistance level, including the total buying volume and total selling volume at the price area!
The image above further explains the IQ Profile!
You can segment the recent price area anywhere from 1 - 15 times.
The image above further explains IQ Zones and the IQ Profile!
That will be all for this indicator - a fun project to share with the community.
Thank you!
Multi-Timeframe RangeThe Multi-Timeframe Range Indicator is designed for traders looking to monitor key price levels across various timeframes (Daily, Weekly, Monthly, Quarterly, and Yearly) directly on their charts. This indicator draws boxes and mid-lines for each timeframe’s high, low, and midpoint, enabling users to visualize price ranges and assess potential areas of support and resistance more effectively.
Features:
Dynamic Range Boxes: Displays the high, low, and midpoint levels for each specified timeframe, with customizable colors for easy differentiation.
Visual Cues for Monday’s Levels: Highlights Monday’s high, low, and midpoint levels each week to support intraday trading setups and weekly trend analysis.
Multi-Timeframe Flexibility: Easily toggle between timeframes to view ranges from daily to yearly, making this indicator suitable for both short-term and long-term traders.
Ideal Use Cases:
Identify key support and resistance zones based on multiple timeframes.
Assess weekly and monthly trends using the Monday range levels.
Gain insights into market structure across various timeframes.
ARMORE Capital: Support–Resistance Levels v2.0 [Enhanced]Enhanced S/R Levels with Signals
The "Enhanced S R Levels with Signals" indicator is designed to help traders and investors identify key Support and Resistance levels on a price chart. It also includes LONG and SHORT signals to help you see potential buy and sell opportunities. Here's a beginner-friendly breakdown of how it works and how to use it:
How it Works
Support and Resistance Levels:
Support Levels (blue lines) are prices where the stock tends to find a "floor" or buying interest, potentially pushing the price up. These levels are calculated based on the lowest prices over a period, with the sensitivity setting helping adjust the distance between each support level.
Resistance Levels (red lines) are prices where the stock often encounters a "ceiling" or selling interest, which could push the price down. These levels are calculated based on the highest prices over a period, with sensitivity adjusting the distance between each resistance level.
The indicator plots up to five support and five resistance lines, giving you a layered view of price levels where the market may react.
LONG and SHORT Signals:
LONG Signal (green arrow pointing up): When the closing price goes above the closest support level, the indicator shows a LONG signal below the bar, suggesting a potential upward trend.
SHORT Signal (red arrow pointing down): When the closing price goes below the closest resistance level, the indicator shows a SHORT signal above the bar, indicating a potential downward trend.
Background Ribbons:
When a LONG condition is met, a faint green background appears on the chart as a visual cue.
When a SHORT condition is met, a faint red background appears to signal potential bearish pressure.
How to Use It
1. Finding Entry and Exit Points: Use the LONG and SHORT signals as a guide, but remember to consider other factors before making trading decisions. A LONG signal suggests that price may rise, while a SHORT signal indicates potential downside.
2. Support & Resistance Levels: Treat these levels as potential points of interest. Prices often react at support or resistance, so you can look for confirmation (e.g., reversal patterns, volume spikes) around these levels.
3. Experiment with Sensitivity: Adjust the "Sensitivity" setting to see how it changes the spacing of support and resistance levels. Higher sensitivity may show more frequent support/resistance levels, which can be helpful for short-term traders.
DISCLAIMER : This is purely experimental and shouldn't be considered a blatant Buy-Sell Indicator. Please feel free to use it to supplement your research, share it with your friends, iterate and improve upon it, and use it to build better, more powerful tools!
Remember, always combine technical indicators with other analysis methods and manage your risk responsibly. Happy Trading!
CSP Key Level Finder This script is designed for option sellers, particularly those using strategies like cash-secured puts (CSPs), to help automate the process of identifying key levels in the market. The core functionality is to calculate a specific price level where a 5% return can be achieved based on the historical volatility of the underlying asset. This level is visually plotted on a chart to guide traders in making more informed decisions without manually calculating the thresholds themselves.
The script incorporates implied volatility (IV) data to determine the volatility rank of the asset and calculates historical volatility (HV) based on price movements. These volatility measures help assess market conditions. The resulting key level is drawn as a line on the chart, along with a label that includes relevant information about volatility, making it easier for traders to evaluate potential option selling strategies.
Additionally, the script includes user input options, allowing users to control when to display the key level on the chart, offering flexibility based on individual needs. Overall, the script provides a visual aid for option sellers to streamline the process of identifying attractive entry points.
Price Action StrategyThe **Price Action Strategy** is a tool designed to capture potential market reversals by utilizing classic reversal candlestick patterns such as Hammer, Shooting Star, Doji, and Pin Bar near dinamic support and resistance levels.
***Note to moderators
- The moving average was removed from the strategy because it was not suitable for the strategy and not participating in the entry or exit criteria.
- The moving average length has been replaced/renamed by the support/resistance lenght.
- The bullish engulfing and bearish engulfing patterns were also removed because in practice they were not working as entry criteria, since the candle price invariably closes far from the support/resistance level even considering the sensitivity range. There was no change in the backtest results after removing these patterns.
### Key Elements of the Strategy
1. Support and Resistance Levels
- Support and resistance are pivotal price levels where the asset has previously struggled to move lower (support) or higher (resistance). These levels act as psychological barriers where buying interest (at support) or selling interest (at resistance) often increases, potentially causing price reversals.
- In this strategy, support is calculated as the lowest low and resistance as the highest high over a 16-period length. When the price nears these levels, it indicates possible zones for a reversal, and the strategy looks for specific candlestick patterns to confirm an entry.
2. Candlestick Patterns
- This strategy uses classic reversal patterns, including:
- **Hammer**: Indicates a buy signal, suggesting rejection of lower prices.
- **Shooting Star**: Suggests a sell signal, showing rejection of higher prices.
- **Doji**: Reflects indecision and potential reversal.
- **Pin Bar**: Represents price rejection with a long shadow, often signaling a reversal.
By combining these reversal patterns with the proximity to dinamic support or resistance levels, the strategy aims to capture potential reversal movements.
3. Sensitivity Level
- The sensitivity parameter adjusts the acceptable range (Default 0.018 = 1.8%) around support and resistance levels within which reversal patterns can trigger trades (i.e. the closing price of the candle must occur within the specified range defined by the sensitivity parameter). A higher sensitivity value expands this range, potentially leading to less accurate signals, as it may allow for more false positives.
4. Entry Criteria
- **Buy (Long)**: A Hammer, Doji, or Pin Bar pattern near support.
- **Sell (Short)**: A Shooting Star, Doji, or Pin Bar near resistance.
5. Exit criteria
- Take profit = 9.5%
- Stop loss = 16%
6. No Repainting
- The Price Action Strategy is not subject to repainting.
7. Position Sizing by Equity and risk management
- This strategy has a default configuration to operate with 35% of the equity. The stop loss is set to 16% from the entry price. This way, the strategy is putting at risk about 16% of 35% of equity, that is, around 5.6% of equity for each trade. The percentage of equity and stop loss can be adjusted by the user according to their risk management.
8. Backtest results
- This strategy was subjected to deep backtest and operations in replay mode on **1000000MOGUSDT.P**, with the inclusion of transaction fees at 0.12% and slipagge of 5 ticks, and the past results have shown consistent profitability. Past results are no guarantee of future results. The strategy's backtest results may even be due to overfitting with past data.
9. Chart Visualization
- Support and resistance levels are displayed as green (support) and red (resistance) lines.
- Only the candlestick pattern that generated the entry signal to triger the trade is identified and labeled on the chart. During the operation, the occurrence of new Doji, Pin Bar, Hammer and Shooting Star patterns will not be demonstrated on the chart, since the exit criteria are based on percentage take profit and stop loss.
Doji:
Pin Bar and Doji
Shooting Star and Doji
Hammer
10. Default settings
Chart timeframe: 20 min
Moving average lenght: 16
Sensitivity: 0.018
Stop loss (%): 16
Take Profit (%): 9.5
BYBIT:1000000MOGUSDT.P
Alboncalc: Top and Bottom Detector - Straight Line ContinuityDescription:
The "Alboncalc: Top and Bottom Detector - Straight Line Continuity" is an innovative indicator for identifying key price reversal points (tops and bottoms) with precision. Unlike traditional indicators that focus on abstract data representations like oscillators or momentum-based lines, this indicator directly overlays the price chart. It draws a continuous line connecting highs and lows (tops and bottoms), providing traders with a clear and immediate visual representation of market swings. The lines automatically adjust in real-time, maintaining a straight path during trend continuations and only shifting when a trend reversal is detected.
Originality and Usefulness:
This indicator stands out from other tools available on TradingView due to its unique ability to maintain a continuous line across price swings, preserving accuracy and visual clarity. Most traditional top-and-bottom detectors merely mark points or provide indicators that are disconnected from price action, making it harder for traders to spot patterns. This script takes a different approach by drawing lines directly on the price chart, offering greater precision and better trend visualization. This innovation is particularly useful for traders who rely on visual cues and price action analysis to make decisions. It simplifies the process of identifying reversal points and trends without needing to rely on lagging indicators.
How It Works:
This indicator detects tops and bottoms based on user-defined periods. When the highest point in a given period is detected, it marks it as a top, and similarly, when the lowest point is detected, it marks it as a bottom. As the price moves, the indicator adjusts the lines to connect consecutive tops and bottoms. If the trend continues in the same direction (e.g., an uptrend), the line remains straight and extends. If a reversal is detected, a new line is drawn to connect the previous bottom (or top) to the new reversal point, providing an accurate visual representation of market trends.
How to Use:
1. Load the Indicator: Add the "Alboncalc: Top and Bottom Detector - Straight Line Continuity" to your chart from the TradingView script library.
2. Customize Settings: Adjust the "Top Period" and "Bottom Period" inputs to fine-tune the sensitivity of top and bottom detection based on your preferred timeframe.
3. Observe Price Action: As the price moves, the indicator will draw lines directly over the price chart, connecting tops and bottoms.
4. Interpret the Lines: Use the continuous lines to identify ongoing trends and potential reversal points. The line remains straight during trend continuation, indicating sustained movement in one direction. A new line signifies a reversal in the trend.
This tool is ideal for traders using trend-following strategies, breakout detection, or those who prefer clean, visual price action analysis (Only Tops and Bottons).
Underlying Concepts:
The core of this indicator is based on the highest high and lowest low concept, which is common in technical analysis. The logic is simple:
- A top is detected when the price reaches a high point compared to a user-defined number of prior candles (i.e., the `top_period`).
- A bottom is detected when the price hits a low point compared to the prior candles (i.e., the `bottom_period`).
When the price continues in the same trend, the line is extended without a break. This behavior ensures that trends are represented in a clear and consistent manner, which helps traders better identify trend continuations and reversals.
Code Breakdown:
```pinescript
//@version=5
indicator("Top and Bottom Detector - Straight Line Continuity", overlay=true)
```
- This initializes the indicator and specifies that it will overlay directly on the price chart.
```pinescript
var int top_period = input.int(5, title="Top Period", minval=1)
var int bottom_period = input.int(5, title="Bottom Period", minval=1)
```
- These inputs allow the user to customize the number of candles used to identify tops and bottoms. A higher period results in fewer but more significant top/bottom detections, while a lower period increases sensitivity.
```pinescript
isTop = ta.highest(top_period) == high
isBottom = ta.lowest(bottom_period) == low
```
- These lines check if the current candle has the highest high or the lowest low in the defined period. If true, the current price is either a top or a bottom.
```pinescript
var line currentLine = na
var float last_price = na
var int last_index = na
var bool isUpTrend = na
```
- These variables store the current line being drawn (`currentLine`), the last detected price (`last_price`), and the direction of the trend (`isUpTrend`). `last_index` tracks where the last top or bottom was detected.
```pinescript
if (isTop or isBottom)
if (not na(last_price))
if ((isTop and isUpTrend) or (isBottom and not isUpTrend))
line.set_xy2(currentLine, bar_index, (isTop ? high : low))
else
currentLine := line.new(x1=last_index, y1=last_price, x2=bar_index, y2=(isTop ? high : low), color=color.yellow, width=2)
last_price := (isTop ? high : low)
last_index := bar_index
isUpTrend := isTop
```
- The `if` block handles the logic of drawing the line. If a top or bottom is detected, and the trend continues (either an uptrend for tops or a downtrend for bottoms), the current line is extended using `line.set_xy2`. If a reversal is detected, a new line is drawn using `line.new`.
- The `last_price` and `last_index` variables are updated after each detection, and the `isUpTrend` flag is set based on whether a top or bottom was found.
Conclusion:
This indicator offers a more precise and visually intuitive way of identifying tops and bottoms directly on the price chart, making it an essential tool for traders focused on price action. Its ability to draw continuous lines through ongoing trends and adjust only upon a reversal makes it superior in terms of visual clarity compared to most conventional indicators.
$TUBR: 7-25-99 Moving Average7, 25, and 99 Period Moving Averages
This indicator plots three moving averages: the 7-period, 25-period, and 99-period Simple Moving Averages (SMA). These moving averages are widely used to smooth out price action and help traders identify trends over different time frames. Let's break down the significance of these specific moving averages from both supply and demand perspectives and a price action perspective.
1. Supply and Demand Perspective:
- 7-period Moving Average (Short-Term) :
The 7-period moving average represents the short-term sentiment in the market. It captures the rapid fluctuations in price and is heavily influenced by recent supply and demand changes. Traders often look to the 7-period SMA for immediate price momentum, with price moving above or below this line signaling short-term strength or weakness.
- Bullish Supply/Demand : When price is above the 7-period SMA, it suggests that buyers are currently in control and demand is higher than supply. Conversely, price falling below this line indicates that supply is overpowering demand, leading to a short-term downtrend.
Is current price > average price in past 7 candles (depending on timeframe)? This will tell you how aggressive buyers are in short term.
- Key Supply/Demand Zones : The 7-period SMA often acts as dynamic support or resistance in a trending market, where traders might use it to enter or exit positions based on how price interacts with this level.
- 25-period Moving Average (Medium-Term) :
The 25-period SMA smooths out more of the noise compared to the 7-period, providing a more stable indication of intermediate trends. This moving average is often used to gauge the market's supply and demand balance over a broader timeframe than the short-term 7-period SMA.
- Supply/Demand Balance : The 25-period SMA reflects the medium-term equilibrium between supply and demand. A crossover between the price and the 25-period SMA may indicate a shift in this balance. When price sustains above the 25-period SMA, it shows that demand is strong enough to maintain an upward trend. Conversely, if the price stays below it, supply is likely exceeding demand.
Is current price > average price in past 25 candles (depending on timeframe)? This will tell you how aggressive buyers are in mid term.
- Momentum Shift : Crossovers between the 7-period and 25-period SMAs can indicate momentum shifts between short-term and medium-term demand. For example, if the 7-period crosses above the 25-period, it often signifies growing short-term demand relative to the medium-term trend, signaling potential buy opportunities. What this crossover means is that if 7MA > 25MA that means in past 7 candles average price is more than past 25 candles.
- 99-period Moving Average (Long-Term):
The 99-period SMA represents the long-term trend and reflects the market's supply and demand over an extended period. This moving average filters out short-term fluctuations and highlights the market's overall trajectory.
- Long-Term Supply/Demand Dynamics : The 99-period SMA is slower to react to changes in supply and demand, providing a more stable view of the market's overall trend. Price staying above this line shows sustained demand dominance, while price consistently staying below reflects ongoing supply pressure.
Is current price > average price in past 99 candles (depending on timeframe)? This will tell you how aggressive buyers are in long term.
- Market Trend Confirmation : When both the 7-period and 25-period SMAs are above the 99-period SMA, it signals a strong bullish trend with demand outweighing supply across all timeframes. If all three SMAs are below the 99-period SMA, it points to a bear market where supply is overpowering demand in both the short and long term.
2. Price Action Perspective :
- 7-period Moving Average (Short-Term Trends):
The 7-period moving average closely tracks price action, making it highly responsive to quick shifts in price. Traders often use it to confirm short-term reversals or continuations in price action. In an uptrend, price typically stays above the 7-period SMA, whereas in a downtrend, price stays below it.
- Short-Term Price Reversals : Crossovers between the price and the 7-period SMA often indicate short-term reversals. When price breaks above the 7-period SMA after staying below it, it suggests a potential bullish reversal. Conversely, a price breakdown below the 7-period SMA could signal a bearish reversal.
- 25-period Moving Average (Medium-Term Trends) :
The 25-period SMA helps identify the medium-term price action trend. It balances short-term volatility and longer-term stability, providing insight into the more persistent trend. Price pullbacks to the 25-period SMA during an uptrend can act as a buying opportunity for trend traders, while pullbacks during a downtrend may offer shorting opportunities.
- Pullback and Continuation: In trending markets, price often retraces to the 25-period SMA before continuing in the direction of the trend. For instance, if the price is in a bullish trend, traders may look for support at the 25-period SMA for potential continuation trades.
- 99-period Moving Average (Long-Term Trend and Market Sentiment ):
The 99-period SMA is the most critical for identifying the overall market trend. Price consistently trading above the 99-period SMA indicates long-term bullish momentum, while price staying below the 99-period SMA suggests bearish sentiment.
- Trend Confirmation : Price action above the 99-period SMA confirms long-term upward momentum, while price action below it confirms a downtrend. The space between the shorter moving averages (7 and 25) and the 99-period SMA gives a sense of the strength or weakness of the trend. Larger gaps between the 7 and 99 SMAs suggest strong bullish momentum, while close proximity indicates consolidation or potential reversals.
- Price Action in Trending Markets : Traders often use the 99-period SMA as a dynamic support/resistance level. In strong trends, price tends to stay on one side of the 99-period SMA for extended periods, with breaks above or below signaling major changes in market sentiment.
Why These Numbers Matter:
7-Period MA : The 7-period moving average is a popular choice among short-term traders who want to capture quick momentum changes. It helps visualize immediate market sentiment and is often used in conjunction with price action to time entries or exits.
- 25-Period MA: The 25-period MA is a key indicator for swing traders. It balances sensitivity and stability, providing a clearer picture of the intermediate trend. It helps traders stay in trades longer by filtering out short-term noise, while still being reactive enough to detect reversals.
- 99-Period MA : The 99-period moving average provides a broad view of the market's direction, filtering out much of the short- and medium-term noise. It is crucial for identifying long-term trends and assessing whether the market is bullish or bearish overall. It acts as a key reference point for longer-term trend followers, helping them stay with the broader market sentiment.
Conclusion:
From a supply and demand perspective, the 7, 25, and 99-period moving averages help traders visualize shifts in the balance between buyers and sellers over different time horizons. The price action interaction with these moving averages provides valuable insight into short-term momentum, intermediate trends, and long-term market sentiment. Using these three MAs together gives a more comprehensive understanding of market conditions, helping traders align their strategies with prevailing trends across various timeframes.
------------- RULE BASED SYSTEM ---------------
Overview of the Rule-Based System:
This system will use the following moving averages:
7-period MA: Represents short-term price action.
25-period MA: Represents medium-term price action.
99-period MA: Represents long-term price action.
1. Trend Identification Rules:
Bullish Trend:
The 7-period MA is above the 25-period MA, and the 25-period MA is above the 99-period MA.
This structure shows that short, medium, and long-term trends are aligned in an upward direction, indicating strong bullish momentum.
Bearish Trend:
The 7-period MA is below the 25-period MA, and the 25-period MA is below the 99-period MA.
This suggests that the market is in a downtrend, with bearish momentum dominating across timeframes.
Neutral/Consolidation:
The 7-period MA and 25-period MA are flat or crossing frequently with the 99-period MA, and they are close to each other.
This indicates a sideways or consolidating market where there’s no strong trend direction.
2. Entry Rules:
Bullish Entry (Buy Signals):
Primary Buy Signal:
The price crosses above the 7-period MA, AND the 7-period MA is above the 25-period MA, AND the 25-period MA is above the 99-period MA.
This indicates the start of a new upward trend, with alignment across the short, medium, and long-term trends.
Pullback Buy Signal (for trend continuation):
The price pulls back to the 25-period MA, and the 7-period MA remains above the 25-period MA.
This indica
tes that the pullback is a temporary correction in an uptrend, and buyers may re-enter the market as price approaches the 25-period MA.
You can further confirm the signal by waiting for price action (e.g., bullish candlestick patterns) at the 25-period MA level.
Breakout Buy Signal:
The price crosses above the 99-period MA, and the 7-period and 25-period MAs are also both above the 99-period MA.
This confirms a strong bullish breakout after consolidation or a long-term downtrend.
Bearish Entry (Sell Signals):
Primary Sell Signal:
The price crosses below the 7-period MA, AND the 7-period MA is below the 25-period MA, AND the 25-period MA is below the 99-period MA.
This indicates the start of a new downtrend with alignment across the short, medium, and long-term trends.
Pullback Sell Signal (for trend continuation):
The price pulls back to the 25-period MA, and the 7-period MA remains below the 25-period MA.
This indicates that the pullback is a temporary retracement in a downtrend, providing an opportunity to sell as price meets resistance at the 25-period MA.
Breakdown Sell Signal:
The price breaks below the 99-period MA, and the 7-period and 25-period MAs are also below the 99-period MA.
This confirms a strong bearish breakdown after consolidation or a long-term uptrend reversal.
3. Exit Rules:
Bullish Exit (for long positions):
Short-Term Exit:
The price closes below the 7-period MA, and the 7-period MA starts crossing below the 25-period MA.
This indicates weakening momentum in the uptrend, suggesting an exit from the long position.
Stop-Loss Trigger:
The price falls below the 99-period MA, signaling the breakdown of the long-term trend.
This can act as a final exit signal to minimize losses if the long-term uptrend is invalidated.
Bearish Exit (for short positions):
Short-Term Exit:
The price closes above the 7-period MA, and the 7-period MA starts crossing above the 25-period MA.
This indicates a potential weakening of the downtrend and signals an exit from the short position.
Stop-Loss Trigger:
The price breaks above the 99-period MA, invalidating the bearish trend.
This signals that the market may be reversing to the upside, and exiting short positions would be prudent.
Supply and demandHi all!
This is my take on supply/demand. The gist is that it creates a zone if there is a big enough reaction. This is configurable in settings as "Minimum range (ATR factor)" (the Average True Length of length 14) that is the distance that the price must travel and "Reaction bars" that is the maximum number of bars that price must travel this distance. The zones that are shown are the ones that have a retest, break and retest or is unmitigated (untouched). If a zone is mitigated (entered) or broken it is temporarily hidden. For a zone to be created it needs to have this reaction and the previous bar does not.
So this script will show you zones that are fresh (unmitigated), retested or broken and retested. This means that the zones that are shown have "proven" that they are good zones through this. Basically it means that the script creates a bunch of zones and then picks the good once. This makes the script have some latency, but will hopefully give you good zones. A zone is completely removed if it's broken twice (it's okay if it's broken once and can still have a retest after it has flipped from previous supply (or resistance) into demand (or support)).
Here is a zone (the one that has the lowest opacity) that is broken and retested that could have resulted in a good long trade (the settings are default but has a stop in the beginning of 2024):
You have a setting to remove zones that are pierced (broken by price wicks). The following zone is pierced by price (in the beginning of May) that will not be shown after the start of May if you have "Pierced" checked (the indicator has default settings but a stop in the middle of April):
You have a trend section. Zones that create a reaction upwards can only be created if the trend is considered to be up, and vice versa. The options here are "SMA50" (the current price needs to be over the Simple Moving Average of length 50) and "SMA50, SMA200" (price needs to be over the Simple Moving Average of length 50 and the Simple Moving Average of length 50 needs to be over the Simple Moving Average of length 200). If these conditions are met the trend is considered to be up, otherwise it's down. You can disable this by choosing "No detection".
The zones that are shown also need to be within a limit (of the current price). This limit is 10 (factor of the Average True Range if length 14) by default. Set this to 0 to deactivate. This is useful for not showing zones that are far away from current price and therefore unlikely to be interacted with.
You can stop the calculation of zones (through the "Stop" value in the settings). This is useful to see if previous zones were any good. I used it in my testing of the script but left it because it can be nice to have.
The zones created by the script have different transparency based upon the zone's interaction. The clearest zones are the ones that are unmitigated, the second clearest ones are the ones having a retest and lastly the zones which are most unclear are the ones having a break and then a retest.
You can see the concept of this script to be a mix of supply/demand and support/resistance, having zones being unmitigated (untouched) as the most important but also show the zones having an interaction (in the form of a retest or a break and retest).
This is from a previous supply (or resistance) zone that has flipped into demand (or support) and has shown to be a good zone through a retest followed by a rally (default settings):
This zone has multiple retest and then rallies that could have given a good long trades (it has the default settings but a "Stop" time at 2022-01-14):
TODO:
- Create zones based on pivots
- Handle overlapping zones
- Incorporate volume in the creation and/or interaction with zones
- Add alerts
- Add ability to set maximum zone width
- Add ability to set the maximum number of retest bars
- ...?
The example for this publication has the default settings bit a "Stop" and a tighter "Limit" of 4.
I hope this explanation makes sense, let me know otherwise. Also let me know if you have any suggestions on improvements.
Best of trading luck!
Advanced Supply and Demand Indicator# Advanced Supply and Demand Indicator
This Pine Script™ indicator helps traders identify potential supply and demand zones in financial markets. It uses price action, volume, and historical data to plot these zones on your chart, providing valuable insights for trading decisions.
## Key Features:
- Automatically detects and plots supply and demand zones
- Customizable lookback period for zone identification
- Adjustable strength multiplier for more precise zone detection
- User-defined opacity for visual clarity
- Combines price action and volume analysis for improved accuracy
## How It Works:
1. Identifies significant price levels using a specified lookback period
2. Analyzes volume data to confirm potential supply and demand zones
3. Plots supply zones in red and demand zones in green
4. Displays the current price for easy reference
## Customization Options:
- Lookback Period: Adjust the historical data range (1-100 bars)
- Zone Strength Multiplier: Fine-tune the sensitivity of zone detection (1.0-3.0)
- Zone Opacity: Set the transparency of plotted zones (10-100%)
This indicator is designed to help traders identify potential areas of support and resistance, allowing for more informed entry and exit decisions in their trading strategies.
CPR by NKDCentral Pivot Range (CPR) Trading Strategy:
The Central Pivot Range (CPR) is a widely-used tool in technical analysis, helping traders pinpoint potential support and resistance levels in the market. By using the CPR effectively, traders can better gauge market trends and determine favorable entry and exit points. This guide explores how the CPR works, outlines its calculation, and describes how traders can enhance their strategies using an extended 10-line version of CPR.
What Really Central Pivot Range (CPR) is?
At its core, the CPR consists of three key lines:
Pivot Point (PP) – The central line, calculated as the average of the previous day’s high, low, and closing prices.
Upper Range (R1) – Positioned above the Pivot Point, acting as a potential ceiling where price may face resistance.
Lower Range (S1) – Found below the Pivot Point, serving as a potential floor where price might find support.
Advanced traders often expand on the traditional three-line CPR by adding extra levels above and below the pivot, creating up to a 10-line system. This extended CPR allows for a more nuanced understanding of the market and helps identify more detailed trading opportunities.
Applying CPR for Trading Success
1. How CPR is Calculation
The CPR relies on the previous day's high (H), low (L), and close (C) prices to create its structure:
Pivot Point (PP) = (H + L + C) / 3
First Resistance (R1) = (2 * PP) - L
First Support (S1) = (2 * PP) - H
Additional resistance levels (R2, R3) and support levels (S2, S3) are calculated by adding or subtracting multiples of the previous day’s price range (H - L) from the Pivot Point.
2. Recognizing the Market Trend
To effectively trade using CPR, it’s essential to first determine whether the market is trending up (bullish) or down (bearish). In an upward-trending market, traders focus on buying at support levels, while in a downward market, they look to sell near resistance.
3. Finding Ideal Entry Points
Traders often look to enter trades when price approaches key levels within the CPR range. Support levels (S1, S2) offer buying opportunities, while resistance levels (R1, R2) provide selling opportunities. These points are considered potential reversal zones, where price may bounce or reverse direction.
4. Managing Risk with Stop-Loss Orders
Proper risk management is crucial in any trading strategy. A stop-loss should be set slightly beyond the support level for buy positions and above the resistance level for sell positions, ensuring that losses are contained if the market moves against the trader’s position.
5. Determining Profit Targets
Profit targets are typically set based on the distance between entry points and the next support or resistance level. Many traders apply a risk-reward ratio, aiming for larger potential profits compared to the potential losses. However, if the next resistance and support level is far then middle levels are used for targets (i.e. 50% of R1 and R2)
6. Confirmation Through Other Indicators
While CPR provides strong support and resistance levels, traders often use additional indicators to confirm potential trade setups. Indicators such as moving averages can
help validate the signals provided by the CPR.
7. Monitoring Price Action At CPR Levels
Constantly monitoring price movement near CPR levels is essential. If the price fails to break through a resistance level (R1) or holds firm at support (S1), it can offer cues on when to exit or adjust a trade. However, a strong price break past these levels often signals a continued trend.
8. Trading Breakouts with CPR
When the price breaks above resistance or below support with strong momentum, it may signal a potential breakout. Traders can capitalize on these movements by entering positions in the direction of the breakout, ideally confirmed by volume or other technical indicators.
9. Adapting to Changing Market Conditions
CPR should be used in the context of broader market influences, such as economic reports, news events, or geopolitical shifts. These factors can dramatically affect market direction and how price reacts to CPR levels, making it important to stay informed about external market conditions.
10. Practice and Backtesting for Improvements
Like any trading tool, the CPR requires practice. Traders are encouraged to backtest their strategies on historical price data to get a better sense of how CPR works in different market environments. Continuous analysis and practice help improve decision-making and strategy refinement.
The Advantages of Using a 10-Line CPR System
An extended 10-line CPR system—comprising up to five resistance and five support levels—provides more granular control and insight into market movements. This expanded view helps traders better gauge trends and identify more opportunities for entry and exit. Key benefits include:
R2, S2 Levels: These act as secondary resistance or support zones, giving traders additional opportunities to refine their trade entries and exits.
R3, S3 Levels: Provide an even wider range for identifying reversals or trend continuations in more volatile markets.
Flexibility: The broader range of levels allows traders to adapt to changing market conditions and make more precise decisions based on market momentum.
So in Essential:
The Central Pivot Range is a valuable tool for traders looking to identify critical price levels in the market. By providing a clear framework for identifying potential support and resistance zones, it helps traders make informed decisions about entering and exiting trades. However, it’s important to combine CPR with sound risk management and additional confirmation through other technical indicators for the best results.
Although no trading tool guarantees success, the CPR, when used effectively and combined with practice, can significantly enhance a trader’s ability to navigate market fluctuations.
RSI/MFI Divergence Finder [idahodev]Monitoring RSI (Relative Strength Index) and MFI (Money Flow Index) divergences on a stock or index chart offers several benefits to traders and analysts. Let's break down the advantages:
Comprehensive Market View: Combining both indicators provides a more complete picture of market conditions, as they measure different aspects of price movement. RSI focuses on recent gains/losses relative to price change, while MFI incorporates volume data to assess money flow in and out of a security.
Enhanced Signal Accuracy: When divergences occur simultaneously in both RSI and MFI, it may be considered a stronger signal than if only one indicator showed divergence. This can potentially lead to more reliable trading decisions.
Identification of False Breakouts: Divergences between these indicators and price action can help identify false breakouts or misleading price movements that are not supported by underlying market strength or volume.
More Nuanced Market Understanding: By examining divergent behavior between money flow (MFI) and momentum (RSI), traders gain a more detailed comprehension of the interplay between these factors in shaping market trends.
Early Warning Signs: These divergences can act as early warning signs for potential trend reversals or changes in market sentiment, allowing traders to adjust their strategies proactively.
It's important to note that RSI/MFI divergences should be used as part of a broader trading strategy rather than solely relying on them for buy/sell signals. They can serve as valuable tools for confirming trends, identifying potential turning points, or warning against overbought/oversold conditions.
When using these indicators together, traders must be cautious of false signals, especially in choppy markets or during periods of high volatility. It's crucial to combine this analysis with other technical and fundamental factors before making trading decisions.
In summary, monitoring RSI/MFI divergences may offer a way to gain insights into the underlying strengths and weaknesses of market movements.
This utility differs from other in that it allows for a choke/threshold/sensitivity setting to help weed out noisy signals. This needs to be carefully adjusted per chart.
It also allows for tuning of the MFI smoothing length (number of bars on the current chart) as well as how many previous bars it will take into consideration when calculating RSI and MFI divergences. It will signal when it sees alignment forming between RSI and MFI divergences in a direction. You will likely need to tune this script's settings every few days or at least anytime there is a change in overall market behavior or sustained volatility.
Ultimately, the goal with this script is to provide an additional level of confirmation of weakness or strength. It should be combined with other indicators such as exhaustion, pivots, supply/demand, trendline breaks or tests, and structure changes, to name a few complementary tools or strategies. It's not meant to be a standalone buy/sell signal indicator!
Here are some settings for futures that may help you get started:
ES (4m chart)
RSI Length: 26
MFI Length: 8
MFI Smoothing Length: 32
Divergence Sensitivity: 124
Left Bars for Pivot: 10
Right Bars for Pivot: 1
NQ (4m chart)
RSI Length: 14
MFI Length: 14
MFI Smoothing Length: 21
Divergence Sensitivity: 400
Left Bars for Pivot: 21
Right Bars for Pivot: 1
YM (4m chart)
RSI Length: 14
MFI Length: 14
MFI Smoothing Length: 21
Divergence Sensitivity: 810
Left Bars for Pivot: 33
Right Bars for Pivot: 1
