Indicator
Indicator
Strategy
[blackcat] L3 Composite MACD-KDJ-RSI-WR-DMI Trading SystemLevel: 3
Background
The moving average convergence / divergence (MACD) indicator is a pulse oscillator that is mainly used to trade trends. Although it is an oscillator, it is not typically used to identify overbought or oversold conditions. It appears in the diagram as two lines that oscillate without limits. The crossing of the two lines provides trading signals similar to a system with two moving averages.
The KDJ indicator is a technical indicator used to analyze and predict changes in stock performance and the price patterns of a traded asset. The KDJ indicator is also known as the random index. It is a very useful technical indicator that is most commonly used in short term stock market trend analysis. KDJ is a derived form of the Stochastic Oscillator Indicator with the only difference that an additional line is called the J-line. Values of% K and% D indicate whether the security is overbought (over 80) or oversold (under 20). The moments when% K exceeds% D are the moments to sell or buy. The J line represents the deviation of the% D value from% K. The value of J can exceed for the% K and% D lines on the graph.
The Relative Strength Index (RSI) developed by J. Welles Wilder is a pulse oscillator that measures the speed and change of price movements. The RSI hovers between zero and 100. Traditionally, the RSI is considered overbought when it is above 70 and oversold when below 30. Signals can be generated by looking for divergences and error fluctuations.
Williams% R, also known as the Williams Percent Range, is a type of momentum indicator that moves between 0 and -100 and measures overbought and oversold levels. The Williams% R can be used to find entry and exit points in the market. The indicator is very similar to the stochastic oscillator and is used in the same way.
The Directional Movement Index (DMI) is an indicator developed by J. Welles Wilder in 1978 to determine in which direction asset prices are moving. The indicator does this by comparing previous highs and lows and drawing two lines: a positive movement line (+DI) and a negative movement line (-DI). The optional third line is called "Directional Movement (DX)" and it shows the difference between the two lines. When +DI is higher than -DI, the upward pressure on the price is greater than the downward pressure. If -DI is higher than +DI, the price will have greater downward pressure. This indicator can help traders assess the trend direction. Crosses between lines are sometimes used as buying and selling signals.
Function
L3 Composite MACD-KDJ-RSI-WR-DMI Trading System is a simple trading system composed of MACD-KDJ-RSI-WR-DMI together. It can produce 6 types of long entries and 3 types of short entries. It utilizes divergence effect from MACD, KDJ and RSI to detect trend reversal. 6 types of Bottom and top divergence labels are displayed in the chart together with "BUY" and "SELL".
NOTE:In order to make the actual label of the chart more clear, this script does not add stop loss and take profit functions and according labels.
Signal
b1~b3 ---> MACD, KDJ, RSI bottom divergence signal respectively, which hint bull trend may start soon.
d1~d3 ---> MACD, KDJ, RSI top divergence signal respectively, which hint bear trend may start soon.
longentry1~6 ---> with composite indicators together, 6 types of long entry signal are produced.
shortentry1~3 ---> with composite indicators together, 3 types of short entry signal are produced.
Pros and Cons
Pros:
1. excellent open-close, long-short entry signal generation with multiple powerful indicators
2. indicator resonance can help to promote the confidence level of signal and divergence alerts
Cons:
1. integration of multiple indicators is not deeply optimized. fake signal may be produced without filtering schemes
2. no range filter is added
Remarks
To celebrate number of followers exceeds 100. This is my first L3 script published.
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy. Indicator
L1 Composite RSI-William%R IndicatorLevel: 1
Background
The Relative Strength Index (RSI) developed by J. Welles Wilder is a pulse oscillator that measures the speed and change in price movements. The RSI hovers between zero and 100. Traditionally, the RSI is considered overbought when it is above 70 and oversold when it is below 30. Signals can be generated by looking for divergences and error fluctuations. RSI can also be used to identify the general trend.
Williams% R, also known as the Williams Percent Range, is a type of momentum indicator that moves between 0 and -100 and measures overbought and oversold levels. The Williams% R can be used to find entry and exit points in the market. The indicator is very similar to the stochastic oscillator and is used in the same way.
Function
L1 Composite RSI-William%R Indicator combines both RSI and William%R indicator to indicate long and short entries.
Key Signal
rsi1 --> rsi in white
wr1 --> William%R in yellow
bull --> long entry in lime
Pros and Cons
Pros:
1. resonance of RSI and William%R will provide better long and short entry signal
2. use 'bull' to indicate a long entry zone
Cons:
1. It is sensitive to fluctuations
2. More independent long and short entries should be considered
Remarks
Composite RSI+William%R
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy. Indicator
Indicator
Strategy
Indicator
Indicator
Combo Backtest 123 Reversal & Directional Trend Index (DTI) This is combo strategies for get a cumulative signal.
First strategy
This System was created from the Book "How I Tripled My Money In The
Futures Market" by Ulf Jensen, Page 183. This is reverse type of strategies.
The strategy buys at market, if close price is higher than the previous close
during 2 days and the meaning of 9-days Stochastic Slow Oscillator is lower than 50.
The strategy sells at market, if close price is lower than the previous close price
during 2 days and the meaning of 9-days Stochastic Fast Oscillator is higher than 50.
Second strategy
This technique was described by William Blau in his book "Momentum,
Direction and Divergence" (1995). His book focuses on three key aspects
of trading: momentum, direction and divergence. Blau, who was an electrical
engineer before becoming a trader, thoroughly examines the relationship between
price and momentum in step-by-step examples. From this grounding, he then looks
at the deficiencies in other oscillators and introduces some innovative techniques,
including a fresh twist on Stochastics. On directional issues, he analyzes the
intricacies of ADX and offers a unique approach to help define trending and
non-trending periods.
Directional Trend Index is an indicator similar to DM+ developed by Welles Wilder.
The DM+ (a part of Directional Movement System which includes both DM+ and
DM- indicators) indicator helps determine if a security is "trending." William
Blau added to it a zeroline, relative to which the indicator is deemed positive or
negative. A stable uptrend is a period when the DTI value is positive and rising, a
downtrend when it is negative and falling.
WARNING:
- For purpose educate only
- This script to change bars colors. Strategy
Combo Strategy 123 Reversal & Directional Trend Index (DTI) This is combo strategies for get a cumulative signal.
First strategy
This System was created from the Book "How I Tripled My Money In The
Futures Market" by Ulf Jensen, Page 183. This is reverse type of strategies.
The strategy buys at market, if close price is higher than the previous close
during 2 days and the meaning of 9-days Stochastic Slow Oscillator is lower than 50.
The strategy sells at market, if close price is lower than the previous close price
during 2 days and the meaning of 9-days Stochastic Fast Oscillator is higher than 50.
Second strategy
This technique was described by William Blau in his book "Momentum,
Direction and Divergence" (1995). His book focuses on three key aspects
of trading: momentum, direction and divergence. Blau, who was an electrical
engineer before becoming a trader, thoroughly examines the relationship between
price and momentum in step-by-step examples. From this grounding, he then looks
at the deficiencies in other oscillators and introduces some innovative techniques,
including a fresh twist on Stochastics. On directional issues, he analyzes the
intricacies of ADX and offers a unique approach to help define trending and
non-trending periods.
Directional Trend Index is an indicator similar to DM+ developed by Welles Wilder.
The DM+ (a part of Directional Movement System which includes both DM+ and
DM- indicators) indicator helps determine if a security is "trending." William
Blau added to it a zeroline, relative to which the indicator is deemed positive or
negative. A stable uptrend is a period when the DTI value is positive and rising, a
downtrend when it is negative and falling.
WARNING:
- For purpose educate only
- This script to change bars colors. Indicator
9.x IndexENGLISH
The 9-period exponential moving average setups are simple and efficient for upward or downward trends. Its creation is attributed to trader Larry Williams . In Brazil it is widely publicized by trader Alexandre Fernandes (Palex).
This indicator was created to show the setup that appeared in each candle and an arrow shows the direction that the operation must be made (up arrow, long, and down arrow, short).
Below are the rules that describe each setup.
9.1 Long
1) MME9 is descending;
2) The candle that changes the direction of the average upwards, after its closing, activates the setup, if its maximum is broken, the purchase is activated;
3) The stop loss is positioned below the candle low in step 2.
9.1 Short
1) MME9 is rising;
2) The candle that changes the direction of the average downwards, after its closing, activates the setup, if its minimum is lost the sale is activated;
3) The stop loss is positioned above the candle maximum in step 2.
9.2 Long
1) MME9 is rising;
2) The current candle must close below the minimum of the previous candle, if its maximum is broken, the purchase is activated;
4) If the maximum of the candle in step 2 is not broken, the purchase will occur when the maximum of the next candle is broken;
5) The stop loss is positioned below the minimum of the candle in step 2 or step 3.
9.2 Short
1) MME9 is descending;
2) The current candle must close above the maximum of the previous candle, if its minimum is lost the sale is activated;
4) If the minimum of the candle in step 2 is not lost, the sale will occur when the minimum of the next candle breaks;
5) The stop loss is positioned above the maximum of the candle in step 2 or step 3.
9.3 Long
1) MME9 is rising;
2) A reference candle must be followed by two closings in a row below its closing, the purchase occurs when the maximum of the last candle breaks;
3) If the last high is not broken, the purchase occurs when the maximum of the next candle breaks;
4) The stop loss is positioned below the minimum of the candle in step 2 or step 3;
9.3 Short
1) MME9 is descending;
2) A reference candle must be followed by two closings in a row above its closing, the sale occurs when the minimum of the last candle breaks;
3) If the last low is not broken, the sale occurs when the minimum of the next candle breaks;
4) The stop loss is positioned above the candle maximum of step 2 or step 3;
9.4 Long
1) A candle generates a 9.1 short;
2) The next candle should generate a 9.1 long without losing the minimum of the previous candle, the purchase occurs when the maximum is broken;
3) The stop loss is positioned at the low of the candle in step 2.
Setup 9.4 for sale
1) A candle generates a 9.1 long;
2) The next candle should generate a 9.1 short without losing the maximum of the previous candle, the sale occurs at the loss of its minimum;
3) The stop loss is positioned at the maximum of the candle in step 2.
PORTUGUÊS
Os setups da média móvel exponencial de 9 períodos são simples e eficientes em ativos em tendência de alta ou de baixa. Sua criação é atribuída ao trader Larry Williams . No Brasil é amplamente divulgado pelo trader Alexandre Fernandes (Palex).
Esse indicador foi criado para mostrar o setup que surgiu em cada candle e uma seta mostra a direção que deve ser feita operação (seta para cima, compra, e seta para baixo, venda).
Abaixo temos as regras que descreve cada setup.
Setup 9.1 de compra
1) A MME9 está descendente;
2) O candle que mudar a direção da média para cima, após o seu fechamento, ativa o setup, se sua máxima for rompida é ativada a compra;
3) O stop loss é posicionado abaixo da mínima do candle do passo 2.
Setup 9.1 de venda
1) A MME9 está ascendente;
2) O candle que mudar a direção da média para baixo, após o seu fechamento, ativa o setup, se sua mínima for perdida é ativada a venda;
3) O stop loss é posicionado acima da máxima do candle do passo 2.
Setup 9.2 de compra
1) A MME9 está ascendente;
2) O candle atual deve fechar abaixo da mínima do candle anterior, se sua máxima for rompida é ativada a compra;
4) Caso a máxima do candle do passo 2 não seja rompida, a compra o ocorrerá no rompimento da máxima do candle seguinte;
5) O stop loss é posicionado abaixo da mínima do candle do passo 2 ou do passo 3.
Setup 9.2 de venda
1) A MME9 está descendente;
2) O candle atual deve fechar acima da máxima do candle anterior, se sua mínima for perdida é ativada a venda;
4) Caso a mínima do candle do passo 2 não seja perdida, a venda ocorrerá no rompimento da mínima do candle seguinte;
5) O stop loss é posicionado na acima da máxima do candle do passo 2 ou do passo 3.
Setup 9.3 de compra
1) A MME9 está ascendente;
2) Um candle de referência deve seguido por dois fechamentos seguidos abaixo do seu fechamento, a compra ocorre no rompimento da máxima do último candle;
3) Se a última máxima não for rompida, a compra ocorre no rompimento da máxima do candle seguinte;
4) O stop loss é posicionado abaixo da mínima do candle do passo 2 ou do passo 3;
Setup 9.3 de venda
1) A MME9 está descendente;
2) Um candle de referência deve seguido por dois fechamentos seguidos acima do seu fechamento, a venda ocorre no rompimento da mínima do último candle;
3) Se a última mínima não for rompida, a venda ocorre no rompimento da mínima do candle seguinte;
4) O stop loss é posicionado acima da máxima do candle do passo 2 ou do passo 3;
Setup 9.4 de compra
1) Um candle gera um 9.1 de venda;
2) O candle seguinte deve gerar um 9.1 de compra sem perder a mínima do candle anterior, a compra ocorre no rompimento da sua máxima;
3) O stop loss é posicionado na mínima do candle do passo 2.
Setup 9.4 de venda
1) Um candle gerar um 9.1 de compra;
2) O candle seguinte deve gerar um 9.1 de venda sem perder a máxima do candle anterior, a venda ocorre na perda da sua mínima;
3) O stop loss é posicionado a máxima do candle do passo 2. Indicator
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