Market Cipher

gistfile1.txt

//@version=4
//  CIRCLES:
//    - LITTLE: They appear at all WaveTrend wave crossings
//    - GREEN: The wavetrend waves are at the oversold level and have crossed up (bullish)
//    - RED: The wavetrend waves are at the overbought level and have crossed down (bearish)
//    - PURPLE: Appear when a bullish or bearish divergence is formed and WaveTrend waves crosses at overbought and oversold points
//    - GOLD:  When RSI is below 20, WaveTrend waves are below or equal to -80 and have crossed up (DONT BUY WHEN GOLD CIRCLE APPEAR)
//    - None of these circles are certain signs to trade. It is only information that can help you.
//
//  I am not an expert trader or know how to program pine script as such, in fact it is my first indicator only to study and all the code is copied and modified from other codes that are published in TradingView.
//  I am very grateful to the entire TV community that publishes codes so that other newbies like me can learn and present their results. This is an attempt to imitate Market Cipher B.
 
study(title="Cipher_B", shorttitle="Cipher_B")
 
// FUNCTIONS { 
 
// DIVERGENCES
f_top_fractal(_src) => _src[4] < _src[2] and _src[3] < _src[2] and _src[2] > _src[1] and _src[2] > _src[0]
f_bot_fractal(_src) => _src[4] > _src[2] and _src[3] > _src[2] and _src[2] < _src[1] and _src[2] < _src[0]
f_fractalize(_src) => f_top_fractal(_src) ? 1 : f_bot_fractal(_src) ? -1 : 0
 
// MA Selector
ma(matype, src, length) =>
    if matype == "RMA"
        rma(src, length)
    else
        if matype == "SMA"
            sma(src, length)
        else
            if matype == "EMA"
                ema(src, length)
            else
                if matype == "WMA"
                    wma(src, length)
                else
                    if matype == "VWMA"
                        vwma(src, length)
                    else
                        src
 
// } FUNCTIONS 
 
 
// PARAMETERS {
 
// WaveTrend Channel Length
n1 = input(7, "WT Channel Length")
// WaveTrend Average Length
n2 = input(13, "WT Average Length")
 
// WaveTrend MA Params
wtMA = input(defval="EMA", title="WT MA Type", options=["RMA", "SMA", "EMA", "WMA"])
wtMA1 = input(defval="EMA", title="WT MA Type 1", options=["RMA", "SMA", "EMA", "WMA"])
wtMA2 = input(defval="EMA", title="WT MA Type 2", options=["RMA", "SMA", "EMA", "WMA"])
wtMA3 = input(defval="SMA", title="WT MA Type 3", options=["RMA", "SMA", "EMA", "WMA"])
 
// WaveTrend Overbought & Oversold lines
obLevel = input(53, "WT Overbought Level 1")
obLevel2 = input(60, "WT Overbought Level 2")
osLevel = input(-53, "WT Oversold Level 1")
osLevel2 = input(-60, "WT Oversold Level 2")
osLevel3 = input(-80, "WT Oversold Level 3")
 
// WaveTrend MA Source
ap = input(ohlc4, "WaveTrend MA Source")
 
// WaveTrend MA Length
sp = input(3, "WaveTrend MA Length")
 
// RSI+MFI Period
rsiMFIperiod = input(60, "RSI+MFI Period")
MFRSIMA = input(defval="SMA", title="MFRSIMA", options=["RMA", "SMA", "EMA", "WMA", "VWMA"])
 
//RSI+MFI Area multiplier
rsiMFIMultiplier = input(150, "RSI+MFI Area multiplier")
 
// Colors
colorRed = #ff0000
colorPurple = #da00ff
colorGreen = #03ff00
colorOrange = color.orange
colorWT1 = #8ec7fb
colorWT2 = #1353ac
 
 
// Divergence WT
WTShowDiv = input(true, 'Show WT Divergences')
WTDivOBLevel = input(35, title="WT Bearish Divergence min")
WTDivOSLevel = input(-65, title="WT Bullish Divergence min")
 
// Divergence RSI
RSIShowDiv = input(false, 'Show RSI Divergences')
RSIDivOBLevel = input(60)
RSIDivOSLevel = input(30)
 
// RSI Levels
RSIOversold = input(30, "RSI Oversold", input.integer, minval=50, maxval=100)
RSIOverbought = input(60, "RSI Overbought", input.integer, minval=0, maxval=50)
 
// } PARAMETERS
 
 
// CALCULATE INDICATORS {
 
// RSI + MFI Area
candleValue = (close - open) / (high - low)
MVC = ma(MFRSIMA, candleValue * rsiMFIMultiplier, rsiMFIperiod)
color_area = MVC > 0 ? color.green : color.red
 
// RSI
up = rma(max(change(close), 0), 14)
down = rma(-min(change(close), 0), 14)
rsi = down == 0 ? 100 : up == 0 ? 0 : 100 - 100 / (1 + up / down)
rsiColor = rsi <= RSIOversold ? color.green : rsi >= RSIOverbought ? color.red : color.purple
 
// Calculates WaveTrend
esa = ma(wtMA, ap, n1)
de = ma(wtMA1, abs(ap - esa), n1)
ci = (ap - esa) / (0.015 * de)
tci = ma(wtMA2, ci, n2)
wt1 = tci
wt2 = ma(wtMA3, wt1, sp)
 
// VWAP
vwap_area = wt1 - wt2
 
// WaveTrend Conditions
WTCross = cross(wt1, wt2)
WTCrossUp = wt2 - wt1 <= 0
 
WTCross_last = cross(wt1[2], wt2[2])
WTCrossUp_last = wt2[2] - wt1[2] <= 0
WTCrossDown_last = wt2[2] - wt1[2] >= 0
 
WTCrossDown = wt2 - wt1 >= 0
WTOverSold = wt2 <= osLevel
WTOverBought = wt2 >= obLevel
 
// WT Divergence
WTFractal_top = f_fractalize(wt2) > 0 and wt2[2] >= WTDivOBLevel ? wt2[2] : na
WTFractal_bot = f_fractalize(wt2) < 0 and wt2[2] <= WTDivOSLevel ? wt2[2] : na
 
WTHigh_prev  = valuewhen(WTFractal_top, wt2[2], 0)[2]
WTHigh_price = valuewhen(WTFractal_top, high[2], 0)[2]
WTLow_prev  = valuewhen(WTFractal_bot, wt2[2], 0)[2]
WTLow_price  = valuewhen(WTFractal_bot, low[2], 0)[2]
WTRSI_prev = valuewhen(WTFractal_bot, rsi[2], 0)[2]
 
bearWTSignal = WTFractal_top and high[2] > WTHigh_price and wt2[2] < WTHigh_prev
bullWTSignal = WTFractal_bot and low[2] < WTLow_price and wt2[2] > WTLow_prev
           
 
WTCol1 = bearWTSignal ? colorRed : na
WTCol2 = bullWTSignal ? #00FF00EB : na
 
WTGoldBuy = WTLow_prev <= osLevel3 and WTRSI_prev < 20 and bullWTSignal
 
// RSI Divergence
RSIFractal_top = f_fractalize(rsi) > 0 and rsi >= RSIDivOBLevel ? rsi[2] : na
RSIFractal_bot = f_fractalize(rsi) < 0 and rsi <= RSIDivOSLevel ? rsi[2] : na
 
RSIHigh_prev  = valuewhen(RSIFractal_top, rsi[2], 0)[2]
RSIHigh_price = valuewhen(RSIFractal_top, high[2], 0)[2]
RSILow_prev  = valuewhen(RSIFractal_bot, rsi[2], 0)[2]
RSILow_price  = valuewhen(RSIFractal_bot, low[2], 0)[2]
 
bearRSISignal = RSIFractal_top and high[2] > RSIHigh_price and rsi[2] < RSIHigh_prev
bullRSISignal = RSIFractal_bot and low[2] < RSILow_price and rsi[2] > RSILow_prev
 
RSICol1 = bearRSISignal ? #ff0000: na
RSICol2 = bullRSISignal ? #00FF00EB : na
 
// Small Circles WT Cross
signalColor = wt2 - wt1 > 0 ? color.red : color.lime
 
// Buy signal.
buySignal = WTCross and WTCrossUp and WTOverSold
divBuySignal = WTCross_last and WTCrossUp_last and ((WTShowDiv ? bullWTSignal : false) or (RSIShowDiv ? bullRSISignal : false))
buySignalColor = buySignal ? color.new(colorGreen, 65) :  na
 
// Sell signal
sellSignal = WTCross and WTCrossDown and WTOverBought
divSellSignal = WTCross_last and WTCrossDown_last and (bearWTSignal)
sellSignalColor = sellSignal ? color.new(colorRed, 65) : na
 
// Gold Buy
plotWTGoldBuy = WTCrossUp_last and WTGoldBuy
 
// } CALCULATE INDICATORS
 
 
// DRAW {
 
// 0 Line
plot(0, title="0 Line", color=color.gray)
 
// Draw Overbought & Oversold lines
plot(obLevel, title="Over Bought Level 1", color=color.gray, linewidth=2, style=plot.style_stepline, transp=15)
plot(obLevel2, title="Over Bought Level 2", color=color.gray, style=plot.style_cross, transp=60)
plot(osLevel, title="Over Sold Level 1", color=color.gray, linewidth=2, style=plot.style_stepline, transp=15)
plot(osLevel2, title="Over Sold Level 2", color=color.gray, style=plot.style_cross, transp=60)
 
// Divergences
plot(series = WTFractal_top and WTShowDiv ? wt2[2] : na, title='WT Bearish Divergence', color=WTCol1, linewidth=2, transp=65, offset=-2)
plot(series = WTFractal_bot and WTShowDiv ? wt2[2] : na, title='WT Bullish Divergence', color=WTCol2, linewidth=2, transp=65, offset=-2)
plot(series = RSIFractal_top and RSIShowDiv ? rsi[2] : na, title='RSI Bearish Divergence', color=RSICol1, linewidth=1, transp=65, offset=-2)
plot(series = RSIFractal_bot and RSIShowDiv? rsi[2] : na, title='RSI Bullish Divergence', color=RSICol2, linewidth=1, transp=65, offset=-2)
 
// RSI
plot(rsi, title="RSI", color=rsiColor, linewidth=1, transp=35)
 
// RSI + MFI AREA
RSIMFIplot = plot(MVC, title="RSI+MFI Area", color=color_area, transp=35)
fill(RSIMFIplot, plot(0), color_area, transp=45)
 
// RSI + MFI BAR
rsimfiBarTopLine = plot(-95, title="RSI+MFI Bar TOP Line", color=color.black, transp=100)
rsimfiBarBottomLine = plot(-105, title="RSI+MFI Bar BOTTOM Line", color=color.black, transp=100)
fill(rsimfiBarTopLine, rsimfiBarBottomLine, color=color_area, transp=65)
 
// WT Area 1
plot(wt1, style=plot.style_area, title="WT Wave 1", color=colorWT1, transp=0)
// WT Area 2
plot(wt2, style=plot.style_area, title="WT Wave 2", color=colorWT2, transp=10)
 
// VWAP
plot(vwap_area, title="VWAP", color=color.yellow, style=plot.style_area, transp=35)
 
// Circles
plot(WTCross ? wt2 : na, title="Buy and sell signals", color=signalColor, style=plot.style_circles, linewidth=3, transp=35) // Small circles
 
plotshape(buySignal ? -100 : na, title="Big buy signal", color=buySignalColor, style=shape.circle, location=location.absolute, size=size.tiny) // Big green circle, oversold
 
plotshape(divBuySignal ? -120 : na, title="Big buy signal", color=colorPurple, style=shape.triangleup, offset=-2, location=location.absolute, size=size.tiny) // Big purple triangle, bullish divergence
plotshape(divBuySignal ? -100 : na, title="Divergence buy signal", color=color.new(colorGreen, 0), style=shape.circle, offset=-2, location=location.absolute, size=size.tiny) // Big green circle divergence, bullish divergence
 
plotshape(plotWTGoldBuy ? -100 : na, title="Big short signal", color=color.orange, style=shape.circle, transp=25, offset=-2, location=location.absolute, size=size.tiny)
 
plotshape(sellSignal ? 100 : na, title="Big short signal", color=sellSignalColor, style=shape.circle, location=location.absolute, size=size.tiny) // Big green circle, overbought
plotshape(divSellSignal ? 120 : na, title="Big short signal", color=colorPurple, style=shape.triangledown, offset=-2, location=location.absolute, size=size.tiny) // Big purple circle, bearish divergence
plotshape(divSellSignal ? 100 : na, title="Divergence short signal", color=color.new(colorRed, 0), style=shape.circle, offset=-2, location=location.absolute, size=size.tiny) // Big purple circle, bearish divergence
 
// } DRAW
 
// ALERTS {
 
// BUY
alertcondition(buySignal != 0, "Buy Signal (Big green circle)", "Green circle WaveTrend Oversold")
alertcondition(divBuySignal != 0, "Buy Signal (Big green circle + Div)", "Buy signal & WT Bullish Divergence & WT Overbought ")
alertcondition(plotWTGoldBuy != 0, "GOLD Buy Signal (Big GOLDEN circle)", "Green & GOLD circle WaveTrend Overbought")
 
// SELL
alertcondition(sellSignal != 0, "Sell Signal (Big red circle)", "Red Circle WaveTrend Overbought")
alertcondition(divSellSignal != 0, "Sell Signal (Big red circle + Div)", "Buy signal & WT Bearish Divergence & WT Overbought ")
// } ALERTS