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EzAlgo V10 (formerly V2.0)
These settings act as final confirmations for entering or exiting trades, activated at the close of a trading candle. You're advised not to buy during a sell signal and vice versa.
Missed trades aren't cause for concern; patience is key in trading. Your objective is to identify the best opportunities, keeping in mind that profitable trading often involves waiting for the right moment rather than forcing new trades.
Identify key support & resistance levels on your chart from the timeframes of your choosing.
This automatically identifies and plots the Golden Pocket levels (between the 0.618 and 0.65 Fibonacci retracements) on multiple timeframes.
For example, if you're looking at a 1h chart, the indicator might plot the Golden Pocket (GP) levels for the most recent price swing on the 1h timeframe. At the same time, you can also have it plot the GP levels for the most recent price swings on the 4h and 8h timeframes. This can help you see potential areas of support or resistance across multiple timeframes at a glance.
Trend Lines are graphical representations on a price chart that connect a series of high or low points. They help traders identify the prevailing trend direction (upwards, downwards, or sideways) and potentially forecast future price movements.
Using trend lines in confluence with other indicators can increase the reliability of your trading signals, below are a few examples:
- 1.Moving Averages: Use a moving average along with a trend line. If both point in the same direction, it’s a stronger signal.
- 2.Support/Resistance Levels: If a trend line coincides with known support or resistance levels, the signal is considered more reliable.
- 3.Fibonacci Levels: When a trend line intersects with a significant Fibonacci retracement level, it could indicate a strong area of support or resistance.
- 4.Candlestick Patterns: Patterns like Doji, Hammer, or Engulfing can add extra confirmation when they appear near trend lines.
- 5.Volume: High trading volumes during a breakout or breakdown can provide additional confirmation.
- 6.Oscillators: Indicators like the RSI or Stochastic can help confirm if an asset is overbought or oversold relative to the trend line.
Employ the 3 EMAs to determine when to take long and short positions. You can customize the EMA lengths in the Inputs tab, but using the default 3 lengths is suggested. Keep an eye on the crossovers of these EMAs and any retests of the 144 EMA.
The x-shaped reversal signals indicate a potential trend shift and local tops/bottoms. While these signals are powerful, they should not be used on their own, and instead should be used as extra confluence at key levels, or as take profits.
Reversal Bands function similarly to Bollinger Bands, but they are based on Fibonacci values. When the price reaches these outer bands, look for additional reversal or buy/sell signals on your chart. These bands are particularly effective when used in conjunction with Support and Resistance (S/R) levels.
A volume profile is a type of charting study that displays trading activity over a specified lookback period at specified price levels. The study calculates and displays the distribution of volume or contracts over price for a specified time period. This can give traders an idea of the price levels at which a lot of trading activity is likely to occur.
Now, let's break down each of the components:
- 1.Point of Control (POC): The POC is the price level with the highest traded volume for a specific time period. It is the level at which the most trading activity occurred. This is a significant level because it shows the price where the majority of market participants see value and are willing to transact. In other words, it's the price level where the market spent the most time. It often acts as a magnet for price and a pivot point for future price action.
- 2.Value Area High (VAH): The VAH is the highest price level within the "Value Area," which represents a certain percentage of total volume (often 70%) traded during the period under analysis. Prices above the VAH are considered relatively expensive compared to where most trading activity occurred.
- 3.Value Area Low (VAL): Similarly, the VAL is the lowest price level within the Value Area. Prices below the VAL are considered relatively cheap compared to where most trading activity occurred.
Traders use these levels to identify potential trading opportunities and to manage risk. For instance, a trader might use the POC as a potential target for a mean-reversion trade or as a level to place a stop-loss order. Similarly, a breakout trader might look to initiate a long position as price moves above the VAH or a short position as price drops below the VAL, anticipating that price will continue moving away from the area of most trading activity.
The trend dashboard uses Heiken Ashi candles with a flat back to identify trends, favoring confluence with higher timeframe indicators for trend confirmation. For instance, if the daily, 12-hour, and 4-hour indicators are bullish, it's acceptable to scalp long positions. Alternatively, the Smart Money Trader method suggests that when the trend dashboard shows green across multiple timeframes, consider long positions on a lower timeframe below the Point of Control (POC), or employ some reversal strategies.