- Pi Signals version 5.0 is a highly customizable and comprehensive pack of indicators mentioned as below:
- Users can turn on/off any indicator from the Indicator Settings by just checking/unchecking the option they prefer to see on the chart. The lines/text colors selection was done considering high visibility and smooth functioning in different color theme (Light & Dark Mode).
BUY/ SELL Signal
- The buy/ sell signals are generated based on a range of past candle average price.
- The Entry price will show close price by default. Users must avoid entering a trade if a candle is not closed yet, because this candle could look a lot different by the time it closes. Good luck.
- ATR based target and stop loss are based on the average true range. Wider stop and targets indicate more volatility, while narrower stop and targets indicate less volatility. By default, the SL/TP1 is set at 1:1 R/R ratio and TP2 is set to 1:2. User can change the inputs based on risk appetite.
- Trend-lines are a commonly used tool in technical analysis for identifying trends in the stock market.
- They are drawn by connecting two or more points on a stock chart using a straight line. Here are some steps to help you trade trend lines:
- Identify the trend: Look for a clear trend in the stock's price movement.
- A trend line can be used to identify whether the stock is in an uptrend or a downtrend.
- Strength of a Trend line: Once you have identified the trend, draw the trend line by connecting at least two points on the chart. The more points that can be connected, the stronger the trend line.
- Determine support and resistance levels: The trend line can help you identify potential support and resistance levels for the stock. In an uptrend, the trend line can act as a support level, and in a downtrend, it can act as a resistance level.
- Wait for a breakout: Once you have identified the support and resistance levels, wait for the stock to break through the trend line before making a trade. A breakout through the trend line could indicate a continuation of the trend, while a break below the trend line could indicate a reversal.
- Use other indicators: While trend lines can be a useful tool, they should not be used in isolation. Consider using other indicators such as moving averages, momentum indicators, and volume to confirm your analysis. Remember that trading trend lines requires patience and discipline. It's important to wait for the right opportunities and to have a clear strategy in place before making any trades. However, by checking 'Show trend lines History' under Settings > Inputs you can plot historical trend lines .
Support & Resistance Levels
- Support and resistance levels are important concepts in technical analysis that can help traders identify potential entry and exit points in the stock market. Here's a brief overview of how support and resistance levels work:
- Support level: A support level is a price level where the demand for a stock is strong enough to prevent it from falling further. Traders often look for support levels as potential entry points for buying a stock, because they believe that the stock is likely to bounce back up from that level.
- Resistance level: A resistance level is a price level where the supply of a stock is strong enough to prevent it from rising further. Traders often look for resistance levels as potential exit points for selling a stock, because they believe that the stock is unlikely to break through that level.
- Identify key levels: Look for levels where the stock has previously bounced off (support) or struggled to break through (resistance).
- Use multiple time frames: S&R levels can be stronger if they are visible on multiple time frames, such as daily and weekly charts.
- Look for confirmation: Use other indicators, such as moving averages or trend lines, to confirm that a support or resistance level is likely to hold.
- Be patient: Wait for the stock to either bounce off the support level or break through the resistance level before making a trade.
- Manage risk: Always use stop-loss orders to limit your potential losses if the trade doesn't go as planned.
- Remember that support and resistance levels are not always precise and can sometimes be broken.
- That's why it's important to use them as part of a larger trading strategy and to have a clear risk management plan in place.
Higher High and Higher Low
- It’s a real time RSI and MA based Overbought (Higher High) and Oversold (Lower Low) indicator.
- Higher high: A higher high occurs when the stock's price reaches a new high that is higher than the previous high. This is an indication that the stock is in an uptrend.
- Lower low: A lower low occurs when the stock's price reaches a new low that is lower than the previous low.
- This is an indication that the stock is in a downtrend.
- Remember that higher highs and lower lows are just one tool in technical analysis and should be used as part of a larger trading strategy.
- It's important to use other indicators and to have a clear risk management plan in place.
Trend and Consolidation
- A sideways market, also known as a range-bound market or consolidation phase, occurs when a stock or market is trading within a defined range without a clear trend. In other words, the price of the stock is moving sideways rather than up or down.
- Our Indicator shows Green and Red candles that represent the trend/breakout on the chart whereas, the yellow candles are indicative of a sideways movement/consolidation. Best visuals on Heikin Ashi chart.
First Candle High & Low
- Plots High and Low value of the first candle of the day. This strategy is also known as ORB / Opening Range Breakout, is a popular trading strategy in technical analysis that involves identifying the high and low price range of a stock during a set period of time, typically the first 30 minutes to an hour after the market opens, and entering a trade when the price breaks out of that range. Here's how it works:
- Determine the opening range: Look at the high and low prices of a stock during the first 30 minutes to an hour of trading to determine the opening range.
- Set up entry and exit rules: Determine entry and exit rules based on the breakout of the opening range. For example, you may decide to enter a long trade if the price breaks above the high of the opening range, and exit the trade if the price falls below the low of the opening range.
- Manage risk: Always use stop-loss orders to limit potential losses if the trade doesn't go as planned.
Fill TP/SL Background
- This option is simply used to fill the TP/SL background with green and red color.
- When a stock price gap is observed, by a chance of 90% it will get filled in the future. It is not true that it will come back or go up to fill the gap within few trading sessions, sometimes it can and sometimes it may take long.
- Identify the type of gap: There are three types of gaps: breakaway gaps, runaway gaps, and exhaustion gaps. Breakaway gaps occur at the beginning of a trend, runaway gaps occur in the middle of a trend, and exhaustion gaps occur near the end of a trend. Each type of gap requires a different trading strategy.
- Determine the significance of the gap: The size and volume of the gap can provide clues to the significance of the gap. A larger gap with high volume indicates a stronger price movement and a higher probability of a sustained trend.
- Identify the direction of the gap: The direction of the gap can provide clues to the direction of the trend. A gap that opens higher than the previous close is a bullish gap, indicating a potential uptrend, while a gap that opens lower than the previous close is a bearish gap, indicating a potential downtrend.
Fibonacci Levels, Fibonacci Table - Top/ Bottom
- Fibonacci levels are used in technical analysis to identify potential support and resistance levels in financial markets. The levels are based on mathematical ratios derived from the Fibonacci sequence.
- Identify the trend: Determine whether the market is trending upward or downward. You can use various technical indicators to confirm the trend, such as moving averages, trend-lines, or price action analysis.
- Identify the swing points: Swing points are the high and low points of the trend. In an uptrend, swing points are the peaks of the price chart, while in a downtrend, swing points are the troughs. Identify the two most recent swing points to draw a Fibonacci retracement.
- Draw the Fibonacci retracement levels: Our Indicator automatically draws the retracement levels between the two swing points. The most commonly used retracement levels are 38.2%, 50%, and 61.8%.
- Top and Bottom labels are based on Swing High and Low respectively. NOTE: This indicator repaints so it is not advisable for trading on smaller time frames because nobody can guess where is the exact Top and Bottom. It works better on 30 mins or higher time-frames.
- Watch for price action at the Fibonacci levels: The Fibonacci levels can act as support or resistance levels, depending on the direction of the trend. If the price approaches a Fibonacci level, watch for signs of price reversal or continuation. Look for candlestick patterns, trendline breaks, or other technical signals to confirm the trade.
- Set your stop-loss and take-profit levels: Once you have entered the trade, set your stop-loss and take-profit levels based on your risk tolerance and trading strategy. You can use Fibonacci extensions to identify potential profit targets.
- Manage your trade: Monitor your trade and adjust your stop-loss and take-profit levels as the market moves. Be prepared to exit the trade if the price action goes against you.
- The Fibonacci table display the 0%, 23.6%, 38.2%,50% 61.8%, 78.6% and 100% percentage based on the top and bottom.
Heikin Ashi Setup
- If you prefer to use Heikin Ashi candle stick over normal candles then you are the right place.
- Our indicator detects Doji candles on plot them in Orange color. Generally, continuous Doji candle indicates exhaustion and potential trend reversals.
- We have got two additional indicators called "Downtrend" and "Uptrend"
- Wherein, you need to follow the small "Down" or "Up" arrow plotted above or below the candle.
- This gives a trader a confidence to HOLD as long as the arrows keep plotting.
- Do not panic or exit immediately even if one or two candle missed the arrow as long as the candle color is red or green.
- Plan the exit from the trade once Yellow or Orange (Doji) candle is plotted .
- Do not forget to enable 'Trend and Consolidation' option for candle color .
EMA Cloud and EMA lines
- EMA Cloud is based on any two defined EMA values. The EMA crossover/ cross-under will switch the color (green: red) and plots an arrow at every cross. Also, plot EMA/SMA lines based on any values and color defined in the inputs.
- Moving averages are a commonly used technical analysis tool that helps traders identify trends and potential entry or exit points in financial markets. A moving average is simply the average price of an asset over a specified period of time, and it is calculated by taking the sum of the closing prices over that period and dividing it by the number of periods.
- There are two main types of moving averages: simple moving averages (SMA) and exponential moving averages (EMA). The SMA gives equal weight to all data points over the specified period, while the EMA gives more weight to recent data points.
- By default, our Indicator has 50, 100 and 200 EMA pre-defined.However, you can change the number, line thickness and color as per your choice from Indicator Settings.
- Pi_DC indicator is an oscillator based on RSI.
- The crossover and cross-under between the two levels switches the color from green to red and vice versa.
- Its gives an early indication of a change in trend.
- Its a best tool to take scalping trades on smaller time frames and it also help on overall trend detection on higher time frames.
- We have added alerts to this indicator so that you can setup the alert to get a notification every time a crossover happens.
- Monitor your trade and adjust your stop-loss and take-profit levels as the market moves.
- Be prepared to exit the trade if the price action goes against you.
~~~ Wish you a profitable journey with Pi Signals ~~~