Indicator
Adaptive Bull Ratio Strategy█ Overview: Why This Strategy
Most option strategies fall into two traps:
They are too rigid: A "Call Ratio Spread" works great in slow markets but gets destroyed if the market rallies hard.
They are too simple: A simple "Buy Call" suffers from time decay (Theta) if the market chops sideways.
The Adaptive Bull Ratio Strategy solves both . It is a living strategy that "shifts gears" based on price action.
It is called "Adaptive" because it morphs its structure three times during a trade. It starts conservative to harvest Time Decay, but if the market explodes upwards, it "uncaps" itself to ride the trend aggressively.
█ The Entry Philosophy: Why Supertrend?
The default setting uses the Supertrend indicator as the trigger. This is intentional:
Volatility Awareness: Supertrend adapts to market noise using ATR. In high volatility, bands widen to prevent false entries.
Trend Confirmation: Since Phase 1 involves selling options, entering "too early" against a falling market is dangerous. Supertrend forces patience, waiting for a confirmed reversal (Close > Trend Line), ensuring the momentum is actually in your favor before you commit capital.
The "Drift" Benefit: This strategy excels in markets that "drift" upwards. Supertrend identifies these trends while filtering out short-term chop.
Flexibility with External Sources:
While Supertrend is the default, the strategy is designed to be flexible. You can enable the 'Enable External Source' option in the settings to plug in any custom indicator (e.g., Moving Averages, Parabolic SAR, or a proprietary trendline).
The Golden Rule for External Sources: The script interprets a Bullish Signal whenever your External Source line is below the Close price (Ext Source < Close).
Compatibility: As long as your custom indicator behaves like a support line in an uptrend (plotting below the candles), it will work seamlessly with this strategy's logic.
█ The "Long Only" Rationale: Avoiding the Volatility Trap
Why not trade this on the short side (Puts) during crashes?
The Volatility Trap (Vega Risk): In Bull markets, Implied Volatility (IV) usually drops, helping your sold options decay faster. In Bear markets, IV explodes (panic). Selling OTM Puts during a crash is dangerous as their value skyrockets, neutralizing gains.
Velocity Risk: Bear markets crash fast ("Elevator Down"). Prices can blow through adjustment levels faster than the strategy can safely roll down, causing slippage.
Structural Skew: OTM Puts are inherently more expensive. Buying expensive ITM Puts and selling expensive OTM Puts shifts the breakeven further away, making V-shape recoveries painful.
█ How It Works & Stands Out
This strategy actively transforms risk profiles based on market movement:
Phase 1: The "Safe" Start (Entry)
Setup: Initiates a Call Ratio Spread (Buy 2 ITM, Sell 4 OTM) + Protective Puts.
Logic: Profits from sideways drift or slow rallies via Time Decay (Theta). The sold options finance the trade.
Phase 2: The "Shift" (Adjustment Level 1)
Trigger: Market moves above Leg 2 (3 OTM Call).
Action: Rolls Up the position. Exits initial legs, enters new higher legs, and adds a Short Put to finance the roll.
Impact: Aggressive. You bet the trend is strong enough to support the added downside risk of the short put.
Phase 3: The "Uncap" (Adjustment Level 2)
Trigger: Market moves above Leg 3 (4 OTM Call).
Action: Exits all Sold Calls.
Impact: Uncaps profit potential. The trade becomes a Net Long position (Long Calls + Short Puts), allowing you to ride a massive rally without a ceiling.
Phase 4: The "Lock-In" (Optional Trail Adjustment)
Trigger: The market goes parabolic (price rises X levels above Leg 3, configurable in settings).
Action (If Enabled):
Call Adj: Exits the Phase 3 calls and buys fresh 1-OTM calls (Rolling Up to lock profits).
Put Adj: Exits all Put legs (Removing downside risk completely).
Impact: Maximum Safety. This phase is about "banking" the windfall from a massive rally and leaving a smaller, risk-free runner to capture any final extension.
█ How to Start: A Quick Setup Guide
Step 1: Map Expiry Dates
Manually input your trading expiry dates in Settings -> Expiry Management.
Format: YYYY-MM-DD (e.g., 2025-12-25). Strict adherence required for DhanHQ.
Step 2: Configure Symbol & Size
Exchange/Symbol: Enter NSE and NIFTY (or your ticker).
Lot Multiplier: Default is 1. Set to 2 to double all quantities (e.g., Buy 2 becomes Buy 4).
Step 3: Understand Visuals
Entry Window (Light Blue): Strategy is scanning for new trades.
Non-Entry Window (Dark Blue): Trading blocked (Day before Expiry & Expiry Day). Only management allowed.
Green Box: Valid Late Entry Zone.
Red Dashed Line: Invalidation Level (if price touches this, no late entry).
Fuchsia Line: Trigger level for Special Trail Adjustments (Phase 4).
IMPORTANT: Broker & Technology Heads-Up:
The alerts generated by this script ({"secret": "...", "alertType": "multi_leg_order"...}) are specifically formatted for the DhanHQ webhook structure.
Dhan Users: Plug-and-play.
Other Brokers: You need middleware (NextLevelBot, Quantiply) to parse the JSON.
█ Risk Disclaimer & Advice
Trading options involves substantial risk.
The Whipsaw Risk: In Phase 2, you are Long Calls and Short Puts. A sharp reversal causes losses on both sides.
Margin: Selling options requires significant margin. Keep a 15-20% cash buffer to handle adjustments instantly.
Testing: This strategy is optimized for NIFTY Weekly Options. Effectiveness on BankNifty or Stocks is untested and may require parameter tuning.
Advice:
Backtest: Use PulseWire Replay.
Paper Trade: Run for at least one expiry cycle before live deployment.
Consult: Seek professional financial advice before trading.
Practical Tips for Smooth Execution
For a new trader deploying this system, these operational tips are vital:
Capital Buffer: Do not trade at your limit. Always keep 10-15% free cash in your broker account. Adjustments (specifically Phase 2, where you sell an extra Put) require additional margin instantly. If margin is short, the order fails, and your hedge breaks.
Liquidity Awareness : The script trades "Far Deep OTM" options (Leg 4) to reduce margin. On indices like Nifty/BankNifty, this is fine. On individual stocks, these deep strikes might be illiquid. Check the option chain volume before deploying on stocks.
Trust the Process (but Verify) : While the algo drives, you are the pilot.
Check your API connection every morning.
Ensure the "Entry Window" background color on the chart matches your real-world date.
Verify that your broker executed all legs of a multi-leg order (partial fills are rare but possible).
The "Human" Stop: If major news breaks (e.g., unexpected election results, war announcements), volatility can expand faster than any algo can react. It is acceptable—and smart—to pause the strategy during known "Black Swan" events or earnings releases.
█ Timeframe Selection: The 30-Minute Standard
Critical Requirement: This indicator must be applied to a 30-minute chart.
Why?
Noise Filtering: The Supertrend logic is tuned to capture multi-day trends. Lower timeframes (5m, 15m) are full of "noise"—random fluctuations that look like trend changes but aren't.
Execution Logic (The Hybrid Engine): The script has a built-in "Dual Timeframe" architecture.
Decision Layer (30m): Uses the chart timeframe to decide when to be Bullish or Bearish.
Execution Layer (5m): Internally fetches 5-minute data to manage the how (Adjustments, Late Entries, and precise invalidation).
The Risk of Lower Timeframes: If you run the main chart on 5-minutes, you destroy this hierarchy. You will get too many signals, pay too much brokerage, and the internal logic may behave erratically.
Recommendation: Always keep your PulseWire chart interval at 30m. Do not switch to lower timeframes expecting "faster" signals; you will likely just get "false" signals.
█ Testing Scope, Feedback
⚠️ Important Note on Asset Classes:
This strategy logic and the associated strike step calculations have been rigorously tested ONLY on NIFTY Index Options with Weekly Expiry.
BankNifty / Sensex / FinNifty: The volatility characteristics (ATR) and strike intervals of these instruments differ significantly from NIFTY. The effectiveness of this strategy on these other scripts has not been verified and may require different parameter tuning (e.g., strike_step or ATR Length).
Stocks: Individual stock options often lack the liquidity required for the "Deep OTM" legs, leading to potential execution failures.
We encourage traders to backtest this logic on other indices and share their findings! If you find a robust parameter set for BankNifty or observe unique behaviors on other scripts, please let us know in the comments below so we can improve the algorithm for everyone. Your feedback is appriciated. Indicator
Max Pain Options [QuantLabs] v5 (Balanced)Institutional Grade Options Analysis: Max Pain, Gamma & Pin Risk
For years, PulseWire users have been flying blind without access to Options Chain data. QuantLabs: Max Pain & Gamma Exposure changes that. This is not just a support/resistance indicator—it is a sophisticated, algorithmic model that reverse-engineers the incentives of Market Makers using synthetic Black-Scholes logic.
This tool visualizes the "invisible hand" of the market: the hedging requirements of large dealers who are forced to buy or sell to keep their books neutral.
CORE FEATURES:
🔴 Max Pain Gravity Model The bright red line represents the "Max Pain" strike—the price level where the maximum amount of Options Open Interest (Calls + Puts) expires worthless.
Theory: As OpEx (Expiration) approaches, Market Makers maximize profits by pinning the price to this level.
Strategy: Use this as a mean-reversion target. If price is far away, look for a snap-back to the red line.
🟣 Gamma Exposure Profiles (The Purple Lines) These neon histograms show you the estimated "Gamma Walls."
Long Gamma: Dealers trade against the trend (stabilizing price).
Short Gamma: Dealers trade with the trend (accelerating volatility).
Visual: The larger the purple bar, the harder it will be for price to break through that level.
📦 Algorithmic "Pin Risk" Zones The dashed red box highlights the "Kill Zone." When price enters this area near expiration, volatility often dies as dealers pin the asset to kill retail premiums.
Warning: Do not expect breakouts while inside the Pin Zone.
📊 Institutional HUD A clean, non-intrusive dashboard provides real-time Greeks and risk analysis:
Pin Risk: High/Medium/Low probability of a pinned close.
Exp Mode: Detects if the market is in "Short Gamma" (Squeeze territory) or "Long Gamma" (Chop territory).
HOW IT WORKS (The Math): Since live options data is not available via Pine Script, this engine uses a proprietary Synthetic OI Distribution Model. It inputs Volume, Volatility (IV), and Time-to-Expiry into a modified Black-Scholes equation to probability-map where the heavy open interest likely sits.
SETTINGS & CUSTOMIZATION:
Responsiveness: Tuned for the "Goldilocks Zone" (Spread: 12, Decay: 22) to catch local liquidity walls without over-fitting.
Visuals: Designed for Dark Mode. High-contrast Neon aesthetics for maximum readability. Indicator
Smart Money Setup 08 [TradingFinder] Binary Options Gold Scalper🔵 Introduction
In the Smart Money methodology, the market is understood as a structure driven by liquidity flow. This structure forms through the movement of large orders, the accumulation of liquidity, and the reactions that occur around key price zones. The logic of Smart Money is based on the idea that price movement is not random and usually evolves with the intention of collecting liquidity and creating price inefficiencies known as imbalances.
Within this framework, several important stages including the liquidity sweep, the formation of a point of interest, the appearance of an imbalance and the transition of market structure play major roles and collectively define the broader direction of price.
In many bullish scenarios, the market begins by sweeping sell side liquidity and targeting important lows in order to collect the liquidity resting below them. This liquidity collection often becomes the starting point for creating a point of interest which usually marks the area where Smart Money begins to enter the market.
After price moves away from this point, it breaks a structural high and forms a change of character. This shift marks a transition in the balance of power between buyers and sellers and is considered the first clear signal that the market structure is changing.
After the change of character, new institutional order flow often creates a strong and rapid movement that leaves behind an imbalance. This imbalance is one of the most important elements in Smart Money analysis because price tends to return to this area in order to complete structure and restore balance.
The return into the imbalance becomes meaningful when it occurs together with the liquidity sweep, the presence of a validated point of interest and a confirmed structural transition. These conditions frequently mark the beginning of powerful movements within the Smart Money cycle.
Understanding the sequence of liquidity, point of interest, imbalance, change of character and market structure builds the foundation of Smart Money analysis and provides a clear view of the true direction of institutional strength.
Bullish Setup :
Bearish Setup :
🔵 How to Use
To use this framework effectively, the trader must analyze the market through the principles of Smart Money and observe how liquidity drives price. A trade becomes valid only when several essential components appear together in a clear and consistent order.
These components include the liquidity sweep, the formation of a point of interest, the confirmation of a change of character, the transition of market structure and the return of price into an imbalance. The method is built on the understanding that the market first collects liquidity, then shifts order flow and finally provides an entry opportunity inside an inefficient area or inside a point of interest.
For this reason, the trader must follow the path of liquidity from the moment the sweep occurs, through the point of interest and the change of character and finally into the return of price toward the imbalance. When applied correctly, this approach creates entries that are more precise, more structural and more aligned with the real behavior of the market rather than with superficial signals.
🟣 Long Position
A bullish setup in Smart Money structure begins with a liquidity sweep on the sell side. The market first targets the areas where sell side liquidity is located and collects the stops and resting liquidity under previous lows. This collection is the condition that Smart Money requires to begin creating a new order flow. After this liquidity has been taken, a point of interest forms which is usually the last bearish candle or the effective demand zone that initiated the upward movement.
Price then moves away from the point of interest and breaks a structural high which creates a change of character. This event confirms that the market structure has moved from a bearish state to a bullish one and that buying pressure has taken control of the order flow. Following this shift, a strong upward movement often occurs and creates an imbalance between candles. This imbalance reflects the entrance of strong Smart Money orders and is seen as an important confirmation of bullish strength.
When price returns to this imbalance after the displacement, the market enters a phase where Smart Money aims to complete the corrective movement and continue the upward direction. The reaction inside the imbalance when combined with the liquidity sweep, the confirmed point of interest and the change of character completes the bullish setup and forms a structure that often leads to a continuation of the bullish trend.
🟣 Short Position
A bearish setup follows the same Smart Money logic but in the opposite direction. The market begins by collecting buy side liquidity and targets the highs where buy side liquidity and resting stops are located. This liquidity sweep on the buy side becomes the starting phase for Smart Money to initiate a downward order flow. After the liquidity is collected, a bearish point of interest forms which is usually the last bullish candle or the supply zone that created the initial drop.
Price then moves away from this point and breaks the first structural low. This creates a change of character to the downside which confirms that the market structure has transitioned from bullish to bearish and that selling pressure has gained control. After this shift, a strong downward displacement appears and leaves behind a bearish imbalance that clearly shows the dominance of sellers.
As price returns to this imbalance and corrects the inefficient movement, the bearish setup becomes complete as long as the market structure remains bearish. The combination of the buy side liquidity sweep, the bearish point of interest, the change of character, the imbalance and the corrective return creates the ideal structure that Smart Money uses to continue the downward movement and develop a reliable selling opportunity.
🔵 Settings
🟣 Logic Settings
Pivot Period : Defines how many bars are analyzed to identify swing highs and lows. Higher values detect larger, slower structures, while lower values respond to faster patterns. The default value of 5 offers a balanced sensitivity.
🟣 Alert Settings
Alert : Enables alerts for SMS08.
Message Frequency : Determines the frequency of alerts. Options include 'All' (every function call), 'Once Per Bar' (first call within the bar), and 'Once Per Bar Close' (final script execution of the real-time bar). Default is 'Once per Bar'.
Show Alert Time by Time Zone : Configures the time zone for alert messages. Default is 'UTC'.
🔵 Conclusion
The Smart Money approach demonstrates that price movement is not random or based on surface level patterns. Instead, it develops through a clear cycle of liquidity collection, structural transition and corrective movement toward key price zones. By recognizing events such as the liquidity sweep, the formation of the point of interest, the change of character and the return into the imbalance, the trader gains the ability to understand order flow more accurately and identify the true direction of market structure.
Both bullish and bearish setups show that the alignment of these elements creates a transparent view of institutional behavior and reveals the source of strong movements in the market. When the trader correctly identifies this sequence, entry points become more reliable and more aligned with liquidity flow. The combination of liquidity, structure and imbalance provides a consistent framework that removes guesswork and guides decisions through the real logic of the market. Indicator
Indicator
Strategy:Reversal-CatcherWhat
This is a plain and vanilla reversal based strategy for intraday (15m) timeframe on Futures prices of the assets.
Now what all it comprises of?
It finds out the dynamic support & resistance from Bollinger Band (20 period, 1.5 std dev).
It finds out the potential divergence of price deviation from 5 period exponential moving average (EMA).
If the previous candle (N-1) shows a divergence it confirms the reversal by checking the present candle (N) to be closed inside the Bollinger Band.
It confirms the momentum by checking RSI shows a crossover/crossunder to oversold (30) / overbought (70) region.
It also confirms whether the trend is up (then only reversal trade to short) or down (then only reversal trade to long). The trend is checked with EMA-21 and EMA-50.
Re-affirmation Condition : It re-affirms the position of two successive candles called as `hhLLong` and `hhLLShort` in the script.
Why
In Indian context, retail participants are pre-dominantly (yes- 80% of Indian daily volume) Options buyers mainly in weekly indices (Nifty, BankNifty, FinNifty, CNXMidcap, Sensex, Bankx .. well everyday is expiry now in India, except -- Thank God -- Saturday & Sunday).
And in Index Options the momentum plays a big role.
If one can catch a good reversal point the potential of high Risk-to-Reward trade (hence earn handsomely) is very likely (please note: there is no holy grail in trading. Nothing works 100%).
So this is the attempt to catch a reversal.
Re-affirmation of Reversal
hhLLong : It's a reversal point after an uptrend. It checks the relative positioning of current candle compared to that of previous candle. [The details are in the script. Check for variable hhLLong in script.
hhLLShort : It's a reversal point after a downtrend. It checks the relative positioning of current candle compared to that of previous candle. [The details are in the script. Check for variable hhLLShort in script.
Unique-ness
What's unique in it? Why we decided to publicly share this:
Already given the context of The Great Indian Options Buyers community. It should be helpful to them, we believe.
It takes Very Less Number of Trades with High Accuracy . Please check the result in NSE:NIFTY1! in 15m timeframe. 71% accuracy with roughly a trade in a month.
There is no point giving brokers' the brokerages taking 10 trades a day and ending not-so-good EoD. Better lets take less trades with better result possibility. .
Mention
There are many people uses this variation of Bolling Band, 5EMA
Many people use RSI, trends and relative positioning of candles.
--> We are grateful to all of them. It's really difficult to mention everyone's name. But all people somehow influence the thought process. Thanks for all of them.
Statutory Disclaimer
There is no silver bullet / holy grail in trading. Nothing works 100% time. One has to be careful about the loss (s)he can bear in case of the trade goes against.
We, as the author of this script, is not responsible for any trading or position decision one is taken based on the outcome of this.
It is our sole discretion to change, add, delete the portion or withdraw the whole script without any prior notice or intimation.
In Indian Context : We are not SEBI registered, will never be SEBI registered. Strategy
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Top 40 High Low Strategy for SPY, 5minThis strategy is developed based on my High Low Index SPY Top 40 indicator
Notes:
- this strategy is only developed for SPY on the 5 min chart . It seems to work with QQQ as well, but it isn't optimized for it
- P/L shown is based on 10 SPY option contracts, call or put, with strike price closest to the entry SPY price and expiry of 0 to 1 day. This includes commissions (can be changed). This is only an estimate calculated using an arbitrary multiplier factor, this can be changed in the setting
- P/L is based on $5000 initial capital
- Works with both regular / extended trading session turned on/off. However, max drawdown is 1/2 with extended trading session ON
- there is still a bug that doesn't allow alert to be created due to calculation error, will update once fixed
This strategy combines signals from the following indicators to determine entry signals:
- High Low Index SPY Top 40
- MACD
- Linear Regression Slope
Entry signal is triggered when:
- High Low Index line crosses the EMA line
- MACD trending in the same direction
- Linear Regression slope is accelerating above a threshold in the same direction, indicating a strong trend
Profit target(PT) and stop loss(SL) are determined using ATR value, with 2:1 Reward to Risk ratio as default.
Exit signal may be triggered prior to PT or SL trigger when:
- High Low Index SPY Top 40 shows a reversal after overbought or oversold conditions (optional)
- Opposite entry signal is triggered
There are a number of optional settings:
- Turn on/off "option trading", P/L will be calculated using share price only without multiplication factor for trading option contracts
- # of options per trade, default to 10
- Reinvest with profit made
- Trade with trailing SL after PT hit
- Take profit early based on Top 40 overbought/oversold
- Trade 0/1 day expiry. This will signal exit by the end of the day on Mon/Wed/Fri, and only exits 1/2 of positions (if in profit) on Tues/Thurs
- Can reduce the SL level without impacting PT
- No entry between 10:05 - 10:20 (don't ask me why, but statistically it performs better)
Consider donating me some of your profit if you make $$$ hahaha~ ;)
Enjoy~~
Strategy
CPR Option Selling StrategyGood afternoon traders,
This is a script I built for option selling, in attempt to have a high success rate.
The gist of how it works:
It uses the opening or close of the current chart's timeframe opening bar when referenced against a designated (higher) timeframe's central pivot range (CPR).
Using that comparison, this script calculates an option to sell: put, call, or iron condor. It will calculate a call value using an average of the CPR central pivot and the max value of the prior higher timeframe's high or R1 (whichever is higher.)
It does the same for the put side, but uses the higher timeframe's low or S1 (whichever is lower.)
It will use the option on the other side of the source (open or close) of the CPR as the "option in play."
Settings:
There are many settings, most are simply "viewable" settings, and probably self explanatory, others, not so much:
"Source for Trigger" - this is the value used on the "opening bar," such as the close. This value is the one compared to the Central Pivot Range in determining whether to sell a call (if the source is lower,) sell a put (if the source is higher,) or an iron condor if it's in the CPR.
"Show Historical Win/Loss Percentages" - this shows a table in the bottom right of the W/L percentages for the current ticker and settings. Used for a quick glance at historical success rates.
"Extend Developing Levels Into the Future" - This will extend the developing values for CPR values, call and put values into the future (good for trying to trade early or setting up pre-market trades, assuming there will not be huge gap in one direction or another.)
"Select Higher Timeframe" - "Auto" will choose the higher timeframe for you. "Manual" will use the next field...
"If Manual, Timeframe for Pivots" - allows you to choose a different higher timeframe.
The next two sections are simply whether to show the plots for different levels of traditional and/or camarilla pivot points.
The last section will allow you to just filter on certain days. Really only useful for "backtesting" certain 0DTE trades on some daily options during the hourly chart.
Example use:
An example use (which I completed last week) on the chart referenced in this share: I sold a put-spread for $0.90, selling a 590 and buying a 570 strike in the middle of the week. I was looking at an hourly timeframe chart with a weekly pivot timeframe for the strategy.
Obviously, making only $0.90 on a $20 spread, there is a lot more to lose than to make, but I did some other analysis to go with it, so I felt safe, and I had a stop set for $1.50. So it worked, along with 3 other plays I did, very similar, and if that "Historical Win/Loss Percentage" is accurate, which I am fairly certain it is, I felt good about it.
The key all comes down to what you sell it for, right? That piece only you can determine. :)
Happy trading and enjoy,
Deuce
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OptionsMillionaire SPY Moving Averages and Signalsby ColeJustice
OptionsMillionaire's SPY Options trading system is based mainly on these indicators:
- 8 EMA*
- 21 EMA*
- 100 SMA*
- 200 SMA*
- MACD
- RSI
- Squeeze Momentum
(*provided by this indicator)
and follows these rules:
|
| 1) I never fight the trend. If its green, i buy calls. If its red, i buy puts. I will only buy puts on a green day if there is a overall change in market trend. Inversely, calls on a red day
| 2) Price action is my #1 indicator. I wait for it to confirm my thesis before i enter a trade
| 3) I only trade SPY Options
| 4) My baseline is to choose a call/put that has a DTE (Date To Expiration) 6-7 days out, with a strike $2-$3 away. I adjust that to fit my current appetite for volatility. i virtually never play same day DTE's.
| 5) I set a 10% stop, but usually exit at 8% before my stop triggers depending on current situation
| 6) I utilize about 10-20% of my Portfolio for one trade. Sometimes more. Rarely less.
| 7) I never hold overnight in these market conditions.
| 8) I shoot for 10-20% for gains. Depending on market conditions.
| 9) Always look for confirmations in your indicators.
| 10) I never force a trade. No trade is a good trade too if the entry just isn't there.
| 11) Patience always pays off. A great set-up can form in minutes or seconds. I never regret being patient to enter. I nearly always regret rushing into a trade.
|
This indicator combines the moving averages into a single unit to simplify one part of the indicator usage rules: the 8 EMA / 21 EMA Cross. . The 8 crossing over the 21 is a Bullish signal, while the 8 crossing under the 21 is a Bearish signal. This indicator places flags at these crossover/under points, as well as shading the area between the 8 and 21 EMAs to help visualize the strength of the trend; green during a Bullish cross, and red during a Bearish cross.
A new addition to this strategy is the Hull Moving Average, or HMA. This script defaults to an HMA of 20 and shows alerts when candles close above or below the plot in the form of green and red candle backgrounds. This alert is best used in conjunction with the main crossovers and should be considered an addition level of confidence rather than providing trade entry/exits directly. This indicator is more flexible and you should feel free to adjust the period if you find a different value works better within your own personal trading style.
Each individual element of this indicator can be modified or toggled, providing maximum customization. While you should strive to become comfortable with the default settings, these options are provided in case you feel the need to adjust for your own style (or if testing on tickers other than SPY, for example).
Goodluch, and happy trading!
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Geometric Brownian Motion BandIf you are an option trader, who are constantly searching opportunities to set up inverse iron condor position or other strategies, you must be familiar in estimating the range induced by Geometric Brownian Motion (GBM), or Lognormal distribution someone may call.
The theory behind is adopted in the Black Scholes Option Pricing model, this assumes the asset price follows the GBM, shown below, and estimates the range where the price will fall into on the specific date and probability.
dS = a dt + v dW
Assuming the drift term is zero, this GBM Band applies the same model and helps you to quickly assess the suitable range to set up your option strategies with simple setting:
Length – number of bars covered
Vol Multiple - the z-score of the probability
Default values of the Length and Vol Multiple are set to 20 bars and 2.0 z-score respectively.
You can find an example how the GMB Band work.
You can also applies this GMB Band like how Bollinger's Band does for swing trade or breakaway trade.
If you find this indicator is useful to you, Star it, Follow, Donate, Like and Share.
Your support is a highly motivation for me.
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