TradeChartist

TradeChartist Risk Meter

โ„ข๐—ง๐—ฟ๐—ฎ๐—ฑ๐—ฒ๐—–๐—ต๐—ฎ๐—ฟ๐˜๐—ถ๐˜€๐˜ ๐—ฅ๐—ถ๐˜€๐—ธ ๐— ๐—ฒ๐˜๐—ฒ๐—ฟ is a very useful and a well designed indicator, that packs a range of Risk utility tools including Trend Based Stochastic Oscillator, Bollinger Bands %B , Volatility Risk Oscillator, RSI Oscillator and RSI Risk Oscillator, along with further visual risk assessment tools like Divergence Spotter, Trend based Strength detector among other useful extras.

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โ„ข๐—ง๐—ฟ๐—ฎ๐—ฑ๐—ฒ๐—–๐—ต๐—ฎ๐—ฟ๐˜๐—ถ๐˜€๐˜ ๐—ฅ๐—ถ๐˜€๐—ธ ๐— ๐—ฒ๐˜๐—ฒ๐—ฟ ๐—จ๐˜€๐—ฒ๐—ฟ ๐— ๐—ฎ๐—ป๐˜‚๐—ฎ๐—น

The user can choose from one of the following four option from the ๐—ฅ๐—ถ๐˜€๐—ธ ๐— ๐—ฒ๐˜๐—ฒ๐—ฟ ๐—ง๐˜†๐—ฝ๐—ฒ dropdown from the settings.

  • 1. Trend Based Stochastic

  • 2. Bollinger Bands %B

  • 3. Volatility Risk Oscillator

  • 4. RSI + RSI Risk Oscillator


The source price for the Risk Meter can be chosen from Sแดแดœส€แด„แด‡ dropdown. Both Trend Based Stochastic and Volatility Risk Oscillator use High/Low prices as default. Enable Usแด‡ Sแดแดœส€แด„แด‡ Pส€ษชแด„แด‡ under respective section to use a different source price.

Users can choose to plot Risk Meter background fill by enabling or disabling Rษชsแด‹ Mแด‡แด›แด‡ส€ Bแด€แด„แด‹ษขส€แดแดœษดแด…. The background fill is based on the trend intensity and uses 2 different colour schemes based on user preference. When the Dแด‡แด„ษชแด…แด‡ส€ Tสœส€แด‡sสœแดสŸแด… is used, it uses the background fill to mask the zone. If background fill is disabled, orange colour is used to mask the zone.

All of the Risk Meter plots can be plotted as Line, Histogram or Area plots and each of the sections include the PสŸแดแด› Sแด›สสŸแด‡ option, so the user can choose a specific type of plot style for each of the Risk Meter Oscillators, based on user preference.

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โ•โ•โ• ๐Ÿญ. ๐—ง๐—ฟ๐—ฒ๐—ป๐—ฑ ๐—•๐—ฎ๐˜€๐—ฒ๐—ฑ ๐—ฆ๐˜๐—ผ๐—ฐ๐—ต๐—ฎ๐˜€๐˜๐—ถ๐—ฐ โ•โ•โ•

Trend Based Stochastic Oscillator is a modified version of the classic Stochastic Oscillator with the difference being the limits and also the plot itself to an extent.

--> Trend based Stochastic is a single plot oscillates between -100 to +100 and occasionally breaches these limits and can signal extremely overbought or oversold conditions unlike classic Stochastic indicator, which has two plots and strictly oscillates between 0-100.

--> Trend based Stochastic is extremely sensitive to price action, making it possible to detect every single divergence, both regular and hidden, even with the default smoothing factor of 5

--> Risk Meter employs Dแด‡แด„ษชแด…แด‡ส€ Tสœส€แด‡sสœแดสŸแด… to let user choose the threshold limit and only from this point onwards, Risk Meter detects the divergences. This helps filter a lot of noise in addition to Price and Oscillator Pivot detection under ๐——๐—ถ๐˜ƒ๐—ฒ๐—ฟ๐—ด๐—ฒ๐—ป๐—ฐ๐—ฒ๐˜€ section.

The user has to choose the length for the Trend based Stochastic plot by entering number of bars in Lแดแดแด‹ส™แด€แด„แด‹ Lแด‡ษดษขแด›สœ input box (Default value is 55). The user can also change the smoothing factor from default value of 5 by entering the value in Sแดแดแดแด›สœษชษดษข input box. Smoothing is particularly useful to detect the strength, based on the trend if ๐‚๐จ๐ฅ๐จ๐ซ ๐™๐จ๐ง๐ž๐ฌ ๐›๐š๐ฌ๐ž๐ ๐จ๐ง ๐’๐ญ๐ซ๐ž๐ง๐ ๐ญ๐ก is enabled and the required trend length is entered in Tส€แด‡ษดแด… Sแด›ส€แด‡ษดษขแด›สœ Dแด‡แด›แด‡แด„แด›ษชแดษด Lแด‡ษดษขแด›สœ. This feature splits the Risk Meter Plot into Bull and Bear zones based on the trend strength. HIgher Smoothing with default trend strength detection of 5 (upto 10) works well for sensitive price hugging scalps/swings. For longer trends, higher detection lengths can be used.

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โ•โ•โ•โ• ๐Ÿฎ. ๐—•๐—ผ๐—น๐—น๐—ถ๐—ป๐—ด๐—ฒ๐—ฟ ๐—•๐—ฎ๐—ป๐—ฑ๐˜€ %๐—• โ•โ•โ•โ•โ•

Bollinger Bands %B in Risk Meter oscillates between -100 to +100 rather than 0 - 1 in the classic version, with oversold/overbought levels breaching the limits and the plot is exactly the same otherwise.

Risk Meter employs Dแด‡แด„ษชแด…แด‡ส€ Tสœส€แด‡sสœแดสŸแด… for Bollinger Bands %B to let the user choose the threshold limit and only from this point onwards, Risk Meter detects the divergences. This helps filter a lot of noise in addition to Price and Oscillator Pivot detection under ๐——๐—ถ๐˜ƒ๐—ฒ๐—ฟ๐—ด๐—ฒ๐—ป๐—ฐ๐—ฒ๐˜€ section.

The user has to choose the Simple Moving Average (SMA) length for the plot by entering number of bars in BB SMA Lแด‡ษดษขแด›สœ input box (Default value is 20). There is no need for Standard Deviation as the fundamental plot is exactly the same, given that the plot oscillates between -100 to +100. The user can also change the smoothing factor from default value of 5 by entering the value in Sแดแดแดแด›สœษชษดษข input box. Smoothing is particularly useful to detect the strength, based on the trend if ๐‚๐จ๐ฅ๐จ๐ซ ๐™๐จ๐ง๐ž๐ฌ ๐›๐š๐ฌ๐ž๐ ๐จ๐ง ๐’๐ญ๐ซ๐ž๐ง๐ ๐ญ๐ก is enabled and the required trend length is entered in Tส€แด‡ษดแด… Sแด›ส€แด‡ษดษขแด›สœ Dแด‡แด›แด‡แด„แด›ษชแดษด Lแด‡ษดษขแด›สœ. This feature splits the Risk Meter Plot into Bull and Bear zones based on the trend strength. HIgher Smoothing with default trend strength detection of 5 (upto 10) works well for sensitive price hugging scalps/swings. For longer trends, higher detection lengths can be used.

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โ•โ•โ•โ•โ•โ• ๐Ÿฏ. ๐—ฉ๐—ผ๐—น๐—ฎ๐˜๐—ถ๐—น๐—ถ๐˜๐˜† ๐—ฅ๐—ถ๐˜€๐—ธ โ•โ•โ•โ•โ•โ•โ•

Volatility Risk Oscillator is an original โ„ขTradeChartist model designed to visually see the Volatility risk for the security on any time frame.

To plot Volatility Risk for the security, the user has to enter the number of bars to detect volatility risk in Lแดแดแด‹ส™แด€แด„แด‹ Lแด‡ษดษขแด›สœ input box (Default Value is 55). The user can also change the smoothing factor from default value of 5 by entering the value in Sแดแดแดแด›สœษชษดษข input box. Smoothing is particularly useful to detect the strength based on trend if ๐‚๐จ๐ฅ๐จ๐ซ ๐™๐จ๐ง๐ž๐ฌ ๐›๐š๐ฌ๐ž๐ ๐จ๐ง ๐’๐ญ๐ซ๐ž๐ง๐ ๐ญ๐ก is enabled and required trend length is entered in Tส€แด‡ษดแด… Sแด›ส€แด‡ษดษขแด›สœ Dแด‡แด›แด‡แด„แด›ษชแดษด Lแด‡ษดษขแด›สœ. This feature splits the Risk Meter Plot into Bull and Bear zones based on the trend strength. HIgher Smoothing with default trend strength detection of 5 (upto 10) works well for sensitive price hugging scalps/swings. For longer trends, higher detection lengths can be used.

Even though Divergences work on Volatility Risk Oscillator, it is not employed as it produces far too many and there is no set Threshold limit that can be set to filter the divergences.

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โ•โ•โ•โ•โ•โ• ๐Ÿฐ. ๐—ฅ๐—ฆ๐—œ ๐—ข๐˜€๐—ฐ๐—ถ๐—น๐—น๐—ฎ๐˜๐—ผ๐—ฟ โ•โ•โ•โ•โ•โ•โ•


There are two different types of RSI Oscillators in this section that can be plotted.

RSI Oscillator - Classic RSI modified to fit -100 to +100 scale rather than 0 - 100 scale. Risk Meter employs Dแด‡แด„ษชแด…แด‡ส€ Tสœส€แด‡sสœแดสŸแด… for RSI Oscillator also, to let the user choose the threshold limit and only from this point onwards, Risk Meter detects the divergences. This helps filter a lot of noise in addition to Price and Oscillator Pivot detection under ๐——๐—ถ๐˜ƒ๐—ฒ๐—ฟ๐—ด๐—ฒ๐—ป๐—ฐ๐—ฒ๐˜€ section.


RSI Risk Oscillator - This oscillator plots the potential RSI risk based on RSI length (which can be changed in RSI Lแด‡ษดษขแด›สœ input box and main source price (Sแดแดœส€แด„แด‡). The user can also change the smoothing factor from default value of 5 by entering the value in Sแดแดแดแด›สœษชษดษข input box. Smoothing is particularly useful to detect the strength, based on the trend if ๐‚๐จ๐ฅ๐จ๐ซ ๐™๐จ๐ง๐ž๐ฌ ๐›๐š๐ฌ๐ž๐ ๐จ๐ง ๐’๐ญ๐ซ๐ž๐ง๐ ๐ญ๐ก is enabled and the required trend length is entered in Tส€แด‡ษดแด… Sแด›ส€แด‡ษดษขแด›สœ Dแด‡แด›แด‡แด„แด›ษชแดษด Lแด‡ษดษขแด›สœ. This feature splits the Risk Meter Plot into Bull and Bear zones based on the trend strength. Higher Smoothing with default trend strength detection of 5 (upto 10) works well for sensitive price hugging scalps/swings. For longer trends, higher detection lengths can be used.

To plot RSI Risk Oscillator, ๐’๐ก๐จ๐ฐ ๐‘๐’๐ˆ ๐‘๐ข๐ฌ๐ค ๐Ž๐ฌ๐œ๐ข๐ฅ๐ฅ๐š๐ญ๐จ๐ซ must be enabled. Disabling this option plots normal RSI Oscillator.

The 4hr chart of BTC-USDT below shows use of RSI Risk Oscillator (Top) with RSI Oscillator (bottom).


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โ•”โ•โ•โ•โ•โ•โ•โ• ๐——๐—ถ๐˜ƒ๐—ฒ๐—ฟ๐—ด๐—ฒ๐—ป๐—ฐ๐—ฒ๐˜€ โ•โ•โ•โ•โ•โ•โ•โ•—

Risk Meter detects both Regular and Hidden Bullish and Bearish Divergences at every occurence. This can be filtered by the use of Dแด‡แด„ษชแด…แด‡ส€ Tสœส€แด‡sสœแดสŸแด… in above sections. To plot divergences, enable
๐——๐—ถ๐˜ƒ๐—ฒ๐—ฟ๐—ด๐—ฒ๐—ป๐—ฐ๐—ฒ๐˜€, Sสœแดแดก Rแด‡ษขแดœสŸแด€ส€ Dษชแด แด‡ส€ษขแด‡ษดแด„แด‡s and Sสœแดแดก Hษชแด…แด…แด‡ษด Dษชแด แด‡ส€ษขแด‡ษดแด„แด‡s. All divergences are enabled as default.

Users can further filter Divergences by entering the number of bars to the right in Rษชษขสœแด› ส™แด€ส€s า“แดส€ Pษชแด แดแด› Cแดษดา“ษชส€แดแด€แด›ษชแดษด input box to confirm the Price Pivot (for Regular divergences) and Oscillator Pivot (for Hidden Divergences).

The example chart of 4hr BTC-USDT chart shows the Divergences filtered by use of RSI Threshold. It is important to note that the trend intensity colour on the plot and bars (if bar colour option is enabled) will help detect if the Divergence would hold.


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โ•”โ•โ•โ•โ•โ•โ•โ• ๐—จ๐˜€๐—ฒ๐—ณ๐˜‚๐—น ๐—˜๐˜…๐˜๐—ฟ๐—ฎ๐˜€ โ•โ•โ•โ•โ•โ•โ•โ•—

Risk Meter offer two vibrant Colour Themes, namely Chilli and Flame, which can be opted from Rษชsแด‹ Mแด‡แด›แด‡ส€ Tสœแด‡แดแด‡ dropdown. These themes also offer the option to plot the trend intensity on the price bars as bar colours by enabling Rษชsแด‹ Mแด‡แด›แด‡ส€ CแดสŸแดแดœส€ Bแด€ส€s. Bar colors can also be inverted using Iษดแด แด‡ส€แด› Bแด€ส€ CแดสŸแดแดœส€ option.

Users can also choose to use the Simple theme and choose preferred colours from Sษชแดแด˜สŸแด‡ Tสœแด‡แดแด‡ ส™แดœสŸสŸ CแดสŸแดแดœส€ and Sษชแดแด˜สŸแด‡ Tสœแด‡แดแด‡ ส™แด‡แด€ส€ CแดสŸแดแดœส€ colour input.


Note: The indicator does not repaint and can be confidently used for alerts and trade entries without worrying about plots disappearing after bar close.

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Example Charts


1. 89 period Trend Based Stochastic Oscillator as Histogram plot on LINK-USDT 1hr chart with Chilli Theme.



2. 89 period Volatility Risk Oscillator as Histogram plot on SPX 1hr chart with Chilli Theme.



3. 14 period RSI Risk Oscillator as Area plot on AAPL Daily Chart with Flame Theme.



4. 100 period Volatility Risk Oscillator using Trend Strength plotted as Zones on 1hr EUR-USD chart with Chilli Theme.



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Best Practice: Test with different settings first using Paper Trades before trading with real money

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This is not a free to use indicator. Get in touch with me (PM me directly if you would like trial access to test the indicator)

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Release Notes:
Code updated
Release Notes:
Code optimised

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