blackcat1402

L1 Buy after Dump Detector

Level: 1

Background

The so-called "Buy after Dump" refers to the phenomenon in which the stock price sometimes rebounds temporarily due to the rapid decline in the falling market. The rebound was smaller than the decline, and the downtrend resumed after the rebound.

Function

L1 Buy after Dump Detector is one of my research to see win rate of a "Buy after Dump" chance. The principle is that I use ema () and OHLC to model a whale dump behavior. After the dump wave, I use KDJ to indicate several long entry points.

Key Signal

dump --> whale dump signal
fundready --> it indicate the end of a dump and make fund ready to long entry
longentry --> long entry signal generated from KDJ resonating with dump and fundready signal

Pros and Cons

Pros:

1. it can detect obvious dump and depict the decay of dump wave
2. use resonance to generate long entry


Cons:

1. it may be risky to "buy after dump" which may require take profit method here because the opportunity may be very short
2. KDJ is too sensitive in large time frame and have many long entry signals (the closer to dump wave, the better based on experience)


Remarks

Very interesing stuff, but rare of people trade with such crazy method. I suggest this is ONLY for backtest study of market behavior.

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.
Release Notes: In order to obey the House Rule, remove the irrelevant MA Cross display.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Want to use this script on a chart?
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LINK: 0xfd4d0eb131e81f44530849

Kommentarer

Hello,
You mention the following:
dump --> whale dump signal
fundready --> it indicate the end of a dump and make fund ready to long entry
longentry --> long entry signal generated from KDJ resonating with dump and fundready signal

However you never provide an explanation as how to spot these nor does the indicator point that out either.
+2 Svara
blackcat1402 DEAD_HUNTER
@DEAD_HUNTER, thanks for your advice! I just pointed out the critical path. I think the ability needed should read pine syntax, because there are corresponding comments in that area. Moreover, this pine script does not use complex functions but only ema and ohlc processing.
Svara
DEAD_HUNTER blackcat1402
@blackcat1402, I get that the script is rather "simple", however I was just wondering what the different prerequisites needed for the signals were.
+1 Svara
Interesting
+1 Svara
Why system show ? something went wrong , please try again later ?
Svara
winsontieu winsontieu
@winsontieu, TV already fixed
Svara
Can you write a formula within the overbought zone?
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