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REVE Cohorts - Range Extension Volume Expansion CohortsREVE Cohorts stands for Range Extensions Volume Expansions Cohorts.
Volume is divided in four cohorts, these are depicted in the middle band with colors and histogram spikes.
0-80 percent i.e. low volumes; these get a green color and a narrow histogram bar
80-120 percent, normal volumes, these get a blue color and a narrow histogram bar
120-200 percent, high volume, these get an orange color and a wide histogram bar
200 and more percent is extreme volume, maroon color and wide bar.
All histogram bars have the same length. They point to the exact candle where the volume occurs.
Range is divided in two cohorts, these are depicted as candles above and below the middle band.
0-120 percent: small and normal range, depicted as single size, square candles
120 percent and more, wide range depicted as double size, rectangular candles.
The range candles are placed and colored according to the Advanced Price Algorithm (published script). If the trend is up, the candles are in the uptrend area, which is above the volume band, , downtrend candles below in the downtrend area. Dark blue candles depict a price movement which confirms the uptrend, these are of course in the uptrend area. In this area are also light red candles with a blue border, these depict a faltering price movement countering the uptrend. In the downtrend area, which is below the volume band, are red candles which depict a price movement confirming the downtrend and light blue candles with a red border depicting price movement countering the downtrend. A trend in the Advanced Price Algorithm is in equal to the direction of a simple moving average with the same lookback. The indicator has the same lagging.as this SMA.
Signals are placed in the vacated spaces, e.g. during an uptrend the downtrend area is vacated.
There are six signals, which arise as follows:
1 Two blue triangles up on top of each other: high or extreme volume in combination with wide range confirming uptrend. This indicates strong and effective up pressure in uptrend
2 Two pink tringles down on top of each other: high or extreme volume in combination with wide range down confirming downtrend. This indicates strong and effective down pressure in downtrend
3 Blue square above pink down triangle down: extreme volume in combination with wide range countering uptrend. This indicates a change of heart, down trend is imminent, e.g. during a reversal pattern. Down Pressure in uptrend
4 Pink square below blue triangle up: extreme volume in combination with wide range countering downtrend. This indicates a change of heart, reversal to uptrend is imminent. Up Pressure in downtrend
5 single blue square: a. extreme volume in combination with small range confirming uptrend, b. extreme volume in combination with small range countering downtrend, c. high volume in combination with wide range countering uptrend. This indicates halting upward price movement, occurs often at tops or during distribution periods. Unresolved pressure in uptrend
6 Single pink square: a extreme volume in combination with small range confirming downtrend, b extreme volume in combination with small range countering uptrend, c high volume in combination with wide range countering downtrend. This indicated halting downward price movement. Occurs often at bottoms or during accumulation periods. Unresolved pressure in downtrend.
The signals 5 and 6 are introduced to prevent flipping of signals into their opposite when the lookback is changed. Now signals may only change from unresolved in directional or vice versa. Signals 3 and 4 were introduced to make sure that all occurrences of extreme volume will result in a signal. Occurrences of wide volume only partly lead to a signal.
Use of REVE Cohorts.
This is the indicator for volume-range analyses that I always wanted to have. Now that I managed to create it, I put it in all my charts, it is often the first part I look at, In my momentum investment system I use it primarily in the layout for following open positions. It helps me a lot to decide whether to close or hold a position. The advantage over my previous attempts to create a REVE indicator (published scripts), is that this version is concise because it reports and classifies all possible volumes and ranges, you see periods of drying out of volume, sequences of falter candles, occurrences of high morning volume, warning and confirming signals.. The assessment by script whether some volume should be considered low, normal, high or extreme gives an edge over using the standard volume bars.
Settings of REVE Cohorts
The default setting for lookback is ‘script sets lookback’ I put this in my indicators because I want them harmonized, the script sets lookback according to timeframe. The tooltip informs which lookback will be set at which timeframe, you can enable a feedback label to show the current lookback. If you switch ‘script sets lookback’ off, you can set your own preferred user lookback. The script self-adapts its settings in such a way that it will show up from the very first bar of historical chart data, it adds volume starting at the fourth bar.
You can switch off volume cohorts, only range candles will show while the middle band disappears. Signals will remain if volume is present in the data. Some Instruments have no volume data, e.g. SPX-S&P 500 Index,, then only range candles will be shown.
Colors can be adapted in the inputs. Because the script calculates matching colors with more transparency it is advised to use 100 percent opacity in these settings.
Take care, Eykpunter
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Planetary Tunings Moving AveragesThe Pine Script "Planetary Tunings Moving Averages" is a unique tool that plots moving averages (MAs) on a chart, representing the wavelengths of different planets as derived from the book Quadrivium. These wavelengths, also referred to as 'planetary tunings', are related to the orbital resonance of each planet.
Each planetary tuning value is first transformed into a whole number by multiplying it by 1000 and removing the decimal. This whole number is then used as the length parameter for a Simple Moving Average (SMA) function. This function calculates the average of the closing prices over the defined number of periods, thereby creating a moving average line on the chart.
The moving average lines are color-coded according to the planet they represent, allowing for quick and easy interpretation. For example, Mercury's moving average line is blue, Venus's line is orange, and so forth. These colors can be adjusted directly in the Pine Script code if desired.
Additionally, the script computes the mean of all these moving averages and plots it on the chart. This line provides an overall trend line, summarizing the collective behavior of all the planetary tuning moving averages.
The drawings in the chart are fib channels and fib circles that I use to capture liquidity in time.
Please note that this script is written for Pine Script Version 4. It's crucial to ensure your PulseWire platform is compatible with this version. For any issues or further clarification, consider referring to PulseWire's Pine Script documentation or its community forums.
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Crypto Trend IndicatorThe Crypto Trend Indicator is a trend-following indicator specifically designed to identify bullish and bearish trends in the price of Bitcoin, and other cryptocurrencies. This indicator doesn't provide explicit instructions on when to buy or sell, but rather offers an understanding of whether the trend is bullish or bearish. It's important to note that this indicator is only useful for trend trading.
The band is a visual representation of the 30-day and 60-day Exponential Moving Average (EMA). When the 30-day EMA is above the 60-day EMA, the trend is bullish and the band is green. When the 30-day EMA is below the 60-day EMA, the trend is bearish and the band is red. When the 30-day EMA starts to converge with the 60-day EMA, the trend is neutral and the band is grey.
The line is a visual representation of the 20-week Simple Moving Average (SMA) in the daily timeframe. "Bull" and "Bear" signals are generated when the 20-day EMA is either above or below the 20-week SMA, in conjunction with a bullish or bearish trend. When the band is green and the 20-day EMA is above the 20-week SMA, a “Bull” signal emerges. When the band is red and the 20-day EMA is below the 20-week SMA, a “Bear” signal emerges. The 20-week SMA can potentially also function as a leading indicator, as substantial price deviations from the SMA typically indicate an overextended market.
While this indicator has traditionally identified bullish and bearish trends in various cryptocurrency assets, past performance does not guarantee future results. Therefore, it is advisable to supplement this indicator with other technical tools. For instance, range-bound indicators can greatly improve the decision-making process when planning for entries and exits points. Indicator
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BUY/SELL + ADVANCE DECLINEThis script is a custom trading view indicator that helps to identify potential buy and sell signals based on the RSI (Relative Strength Index) and SMA (Simple Moving Average) indicators. The script also identifies potential reversals using a combination of RSI and price action. It plots buy, sell, and reversal signals on the chart along with an SMA line. Additionally, it provides alerts based on the buy, sell, and reversal conditions.
Changes made to the original script:
Fixed the undeclared identifier 'c' error by calculating the difference between the current closing price and the previous closing price: c = close - close .
Added an "ADD Value Floating Label" to the chart. The label shows the difference between the current and previous closing prices (ADD value) along with a "Bullish" or "Bearish" indicator based on the value of 'c'. The label is positioned at the top right of the visible chart area and remains static.
Here's a summary of the major components of the script:
Input settings: Define the input parameters for RSI and SMA.
Calculation of RSI and SMA: Compute the RSI and SMA values based on the input parameters.
Color definitions: Define colors for different conditions and levels.
Condition definitions: Define various conditions for buy, sell, reversal, and other criteria.
Buy and sell conditions: Determine buy and sell signals based on RSI, SMA, and price action.
Reversal conditions: Identify potential reversals using RSI and price action.
Plot signals: Display buy, sell, and reversal signals on the chart.
Bar colors: Color the bars based on the identified signals.
Plot SMA: Display the SMA line on the chart.
Alert conditions: Set up alerts for buy, sell, and reversal conditions.
ADD Value Floating Label: Add a label to the chart showing the ADD value and a "Bullish" or "Bearish" indicator. Indicator
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Conceptive Price Moving Average [CSM]The Conceptive Price Moving Average (CPMA) is a technical indicator designed to provide a more accurate moving average of the price by using the average of various price types, such as open, close, high, low, etc. The CPMA can help to smooth out the noise and provide a clearer picture of the overall trend by taking the average of the last 3 candles for each price type and then calculating the average of those averages.
To use the CPMA for generating buy/sell signals, you can look for crossovers of the CPMA and other commonly used moving averages, such as the 9-period EMA, 20-period EMA, 50-period EMA, 100-period EMA, and 200-period EMA, which are also plotted on the chart. When the CPMA crosses above a shorter-term moving average, such as the 9-period EMA or 20-period EMA, it can indicate a potential buy opportunity, while when the CPMA crosses below a shorter-term moving average, it can indicate a potential sell opportunity.
Based on my analysis of BankNifty and Nifty, I have found that the CPMA works best at a length of 21, showing good resistance and support for stocks. Therefore, I recommend using a length of 21 when using the CPMA for generating buy/sell signals. Indicator
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Display Trade Volume with MA Angle and Price VelocityThis Pine Script indicator is designed to provide traders with a visual representation of trade volume, moving average (MA) angle, and price velocity on a chart. The primary components of this indicator are:
Trade Volume: The indicator compares the current bar's trade volume with the average volume over a user-defined lookback period. The volume is displayed as either "Low" or "Trade" in a table, with red or green background color, respectively, to indicate whether it's below or above the average volume.
MA Angle: The indicator calculates the angle of the moving average (either Simple, Exponential, or Hull) over a user-defined length. A positive angle is shown in green, while a negative angle is shown in red. The angle is displayed in degrees in the table.
Price Velocity: This component calculates the velocity of price movement by comparing the difference between high and low prices over a user-defined lookback period. It then displays the velocity as either "Slow" or "Fast" in the table, with red or green background color, respectively, depending on whether it's below or above the average difference.
The indicator also includes alert conditions for high and low volume situations, notifying the trader when the current bar's volume is significantly higher or lower than the average volume. Indicator
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Mean Reversion and TrendfollowingTitle: Mean Reversion and Trendfollowing
Introduction:
This script presents a hybrid trading strategy that combines mean reversion and trend following techniques. The strategy aims to capitalize on short-term price corrections during a downtrend (mean reversion) as well as ride the momentum of a trending market (trend following). It uses a 200-period Simple Moving Average (SMA) and a 2-period Relative Strength Index (RSI) to generate buy and sell signals.
Key Features:
Combines mean reversion and trend following techniques
Utilizes 200-period SMA and 2-period RSI
Customizable starting date
Allows for enabling/disabling mean reversion or trend following modes
Adjustable position sizing for trend following and mean reversion
Script Description:
The script implements a trading strategy that combines mean reversion and trend following techniques. Users can enable or disable either of these techniques through the input options. The strategy uses a 200-period Simple Moving Average (SMA) and a 2-period Relative Strength Index (RSI) to generate buy and sell signals.
The mean reversion mode is active when the price is below the SMA200, while the trend following mode is active when the price is above the SMA200. The script generates buy signals when the RSI is below 20 (oversold) in mean reversion mode or when the price is above the SMA200 in trend following mode. The script generates sell signals when the RSI is above 80 (overbought) in mean reversion mode or when the price falls below 95% of the SMA200 in trend following mode.
Users can adjust the position sizing for both trend following and mean reversion modes using the input options.
To use this script on PulseWire, follow these steps:
Open PulseWire and load your preferred chart.
Click on the 'Pine Editor' tab located at the bottom of the screen.
Paste the provided script into the Pine Editor.
Click 'Add to Chart' to apply the strategy to your chart.
Please note that the past performance of any trading system or methodology is not necessarily indicative of future results. Always use proper risk management and consult a financial advisor before making any investment decisions.
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The following is a summary of the underlying whitepaper (onlinelibrary.wiley.com) for this strategy:
This paper proposes a theory of securities market under- and overreactions based on two psychological biases: investor overconfidence about the precision of private information and biased self-attribution, which causes asymmetric shifts in investors' confidence as a function of their investment outcomes. The authors show that overconfidence implies negative long-lag autocorrelations, excess volatility, and public-event-based return predictability. Biased self-attribution adds positive short-lag autocorrelations (momentum), short-run earnings "drift," and negative correlation between future returns and long-term past stock market and accounting performance.
The paper explains that there is empirical evidence challenging the traditional view that securities are rationally priced to reflect all publicly available information. Some of these anomalies include event-based return predictability, short-term momentum, long-term reversal, high volatility of asset prices relative to fundamentals, and short-run post-earnings announcement stock price "drift."
The authors argue that investor overconfidence can lead to stock prices overreacting to private information signals and underreacting to public signals. This overreaction-correction pattern is consistent with long-run negative autocorrelation in stock returns, excess volatility, and further implications for volatility conditional on the type of signal. The market's tendency to over- or underreact to different types of information allows the authors to address the pattern that average announcement date returns in virtually all event studies are of the same sign as the average post-event abnormal returns.
Biased self-attribution implies short-run momentum and long-term reversals in security prices. The dynamic analysis based on biased self-attribution can also lead to a lag-dependent response to corporate events. Cash flow or earnings surprises at first tend to reinforce confidence, causing a same-direction average stock price trend. Later reversal of overreaction can lead to an opposing stock price trend.
The paper concludes by summarizing the findings, relating the analysis to the literature on exogenous noise trading, and discussing issues related to the survival of overconfident traders in financial markets.
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