blackcat1402

[blackcat] L1 Trend Follower with Whale Pump Detection

Level: 1

Background

One of the biggest differences between cryptocurrency and traditional financial markets is that cryptocurrency is based on blockchain technology. Individual investors can discover the direction of the flow of large funds through on-chain transfers. These large funds are often referred to as Whale. Whale can have a significant impact on the price movements of cryptocurrencies, especially Bitcoin . Therefore, how to monitor Whale trends is of great significance both in terms of fundamentals and technical aspects.

A trend reversal occurs when the direction of a stock (or a financial trading instrument) changes and moves back in the opposite direction. Uptrends that reverse into downtrends and downtrends that reverse into uptrends are examples of trend reversals.

Function

L1 Trend Follower with Whale Pump Detection utilizes fast line and slow line to describe the trend change. To confirm the trend reversal, whale pump detector is introduced.

Key Signal

trendfollower --> trend follower fast line
trendfollower reference 2 --> trend follower slow line
var8 --> whale pump detector


Pros and Cons

Pros:

1. stable and less noise for trend reversal due to alma ()
2. use whale pump detector to confirm trend reversal


Cons:

1. cross zero long and short entry signal is not so stable
2. need adjust parameters for various markets and trading pairs


Remarks

NA

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.
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Comments

If I may give input, is that when two indicators are combined such as this one, if the amplitude of the first one is much bigger than the second one, it made the second one to be hard to be seen or appears just as a flat line in the middle. I've tried this indicator on stocks and the middle (whale pump part?) appeared as just one line most of the time. Thanks and regards.
+1 Reply
@MasBart, could you share the trading pair and time frame you use that have the problem? I will look into it.
Reply
MasBart blackcat1402
@blackcat1402, I focus on stocks so for example: AAPL and GOOG, with daily timeframe. Thanks
+1 Reply
@MasBart, no abnormal was found, they both work well...
Reply
MasBart blackcat1402
@blackcat1402, sorry perhaps I should be more clear, yes it appeared but if we use more than 1 pane indicator (not only 1 as per your example), and we put the height of pane at minimum, since the amplitude of the histogram is mostly much smaller than the ribbon, it will appear as part of the middle line, not to mention the middle line (with red and green box) is small as well. I hope it can be taken into consideration, the visual inside pane indicators at minimum pane heights. Thanks and regards.
+1 Reply
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