- Summary Table
- Break Levels (CHoCH and BOS) (I,S,HTF)
- Swing & Internal Liqudity Grabs
- Order Blocks (OB)
- FVG (Fair Value Gap)
- Swing High & Low
- Multi Timeframe Moving Averages
- Trend Rainbow
- Previous Open/High/Low/Close
- I want to highlight candle colors by
- Volume Profile
- Using Delta
- Value Area
- Fibonacci Levels
- Inducement (Smart Money Trap)
TradeMaster PRO Indicator allows the user to display various technical indicators directly on his chart. These can be used in conjunction with signals/confirmation signals or independently. Each of these functions is described below.
Summary Table #
Displays on the chart the summary chart ( TF, Trend Sentiment, Momentum, Volume, Volatility, Alt Strength, Candle Colors), Multi Timeframe Structure and Market Session Summary.
The Dashboard displays key metrics within the premium features. This feature is extremely useful for easily obtaining relevant market information and can be used in conjunction with confirmation or contrarian signals.
Break Levels (CHoCH and BOS) (I,S,HTF) #
Market structures are the basic concepts of our Smart Money methodology. The TradeMaster Pro Price Smart Money Toolkit automatically detects and highlights real-time market structures on your chart, allowing you to quickly identify and compare opportunities or compare multiple assets in a short period of time.
Read more about the Smart Money structure here: the Smart Money Concept
Swing & Internal Liqudity Grabs #
Liquidity grabs highlight instances where trading activity has taken place in more liquid areas. Our indicator highlights these with coloured swords on your chart. A bullish liqudity grab, can be identified when the activity occurred in a demand area, or as a bearish liqudity grab, when this activity occurred in a supply area.
Bullish Liquidity hunts are highlighted in green, below the area, and indicate a potential bull turn.
Bearish liquidity hunts are highlighted in bold above the area and indicate a potential bear turn.
The many simultaneous occurrences of bull and bear liquidity hunts may highlight market indecision.
Order Blocks (OB) #
Order blocks highlight price areas where more informed market participants have placed orders and which can be used as potential areas of support or resistance. These are automatically highlighted by our order block algorithm and disappear as soon as they are relieved.
Order blocks are divided into two types, bull order blocks and bear order blocks. The initial positions of a bullish order block are near the swing lows and can be used as potential support. On the other hand, the initial locations of bearish order blocks are close to the swing highs and serve as potential resistance.
There are two types of order blocks based on the structure: swing and internal. You can understand this in detail by reviewing Smart Money Concepts.
FVG (Fair Value Gap) #
Fair values gaps (FVG) highlight market imbalances where price movements have moved too fast and not enough support or resistance has been built up. The concept is based on the idea that these imbalances are places where price is attracted to fill them.
Bullish FVGs are shown in green and bearish FVGs are shown in red on the chart.
For more information on order blocks, please see Smart Money Concepts
Swing High & Low #
By turning on “break levels” on the chart, you can see the upper and lower limits of the swing and internal structure.
- It shows a strong low and a weak high if the swing structure is bullish. We expect that the bottom will not be breached and the top will be broken as the bullish structure consists of higher bottoms and tops.
- Weak low and Strong high will be displayed if the swing structure is bearish. We expect that the apex will not be breached and the bottom will be breached since the bearish structure consists of lower bottoms and tops.
The range function identifies three specific price ranges, an upper range (the top of the range), a middle range (the middle of the range, or equilibrium) and a lower range (the bottom of the range).
These areas can be used to find out the extremes between which price movements are currently moving. Furthermore, each area can be used as support or resistance.
To the right of each range zone, a percentage value is displayed to indicate how close the price is to each zone in percentage terms.
In technical analysis of financial markets, divergence occurs when the direction of an asset price and the direction of a technical indicator diverge. Bullish divergence occurs when an asset reaches a new low but the indicator does not confirm with its new low. Conversely, bearish divergence occurs when the asset makes a new top but the indicator does not confirm it with its new top. Divergences can be used as a potential sign of a trend reversal, and traders often watch for divergence as a sign of a potential reversal.
There are two types of divergence: traditional divergence and hidden divergence.
- A traditional divergence is when the indicator and the price move in opposite directions, and this can be bullish or bearish.
- Hidden divergence is similar to traditional divergence, but occurs in the middle of an established trend.
Divergences can occur on any type of indicator, such as an oscillator like the Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD), or on trend following indicators like moving averages.
It is important to note that divergences are not a sure sign of a trend reversal and should be considered in conjunction with other technical analysis tools and appropriate risk management.
Furthermore, divergences alone are not necessarily a reliable or sufficient indicator for making trading decisions, it is necessary to consider several features together and take into account other factors such as fundamental analysis and market sentiment.
Multi Timeframe Moving Averages #
Moving averages are widely used technical indicators in trading, used to smooth price data and identify trends. A moving average is calculated by taking the average of the price of an asset over a certain number of time periods, such as days, weeks or months.
Moving averages are often used by traders to identify trends, generate buy and sell signals and set stop-loss levels.
One popular use of moving averages is to identify support and resistance levels. For example, if an asset price consistently finds support at its moving average of 200, traders may consider using this average as a key level at which to enter or exit a position.
It is important to keep in mind that moving averages are lagging indicators, meaning that they are based on past prices. Therefore, they can be used as a confirmation tool rather than as a primary indicator.
The chart shows the level of moving averages above price resistance in red and the level of moving averages below price support in green. It also shows the price distance in % from the different moving average levels.
Furthermore, like all other indicators, moving averages are not a sure sign of market direction and should be used in conjunction with other technical and fundamental analysis tools and appropriate risk management.
Trend Rainbow #
The Trend Rainbow indicator is a technical analysis tool that uses a proprietary moving average to identify trends and potential buy and sell signals (TMPMA = TradeMaster Pro Moving Average).The indicator consists of several TMPMAs of different time periods arranged in a “bar” formation on the chart. Of course, you can select any moving average in the settings other than the proprietary default TMPMA to use as the basis for its calculation.
Here is an example of how you can use the Trend Rainbow indicator to make trading decisions:
Identifying the trend: by looking at the slope of the rainbow, you can identify the general trend of the asset. If the rainbow is generally pointing up, the asset is in an uptrend, if it is pointing down, the asset is in a downtrend.
The Rainbow indicator has 3 main trends to help you assess the short, medium and long term trend.
- Short-term trend: light blue for bull trend, purple for bear trend.
- Medium-term trend: light green for bull trend, orange for bear trend.
- Long-term trend: dark green for bull trend, dark red for bear trend.
In short, you will be able to assess the strength of a trend and its potential resistance and support levels with a single function. The image clearly shows that the short-term trend turned bullish several times during the decline, but only to test the medium-term trend of the declining trend. To test the long-term trend, the price on the left side of the picture did not have enough strength yet, so it gives a good idea of the positioning. The right side of the picture is where the strength first starts to show, as the short-term trend has turned bullish, and then the medium-term trend has started to turn bullish. This strength did not weaken and eventually, by maintaining the strength of the short and medium term trend, the long term trend was able to turn bullish again and a strong uptrend is now unfolding. The trend rainbow also helps in risk management. It can be clearly seen that on the right side the price is making a very steep move and outside the short term trend the medium and long term trend is very far away from the current price, so this shows us potential risk and the possibility of a deeper pullback, which we as traders need to be aware of. I hope this brief description will help put into perspective the use of the trend rainbow both for trend identification, for use as a support and resistance level, and for assessing potential risk.
Confirming signals with other indicators: as with all technical indicators, it is important to confirm potential signals with other analytical tools, such as support and resistance levels, as well as indicators such as RSI, MACD and volume, to increase the probability of a successful trade.
Use proper risk management: when using this indicator or any other indicator, it is important to have proper risk management in place, such as stop loss levels and consider position sizing.
The TrendRainbow indicator can also be used in conjunction with other technical indicators to create a strategy and further confirm it. In addition, the user can choose different lengths of moving averages to create a rainbow, some use short term moving averages, others long term, the choice depends on the individual trader’s preferences and market conditions.
Please keep in mind that this is just an example of how to use the Rainbow indicator and like all indicators, it is not a sure indicator of the market direction. It is essential to do proper research and backtesting before making any trading decisions and to have a good understanding of the indicator and its behaviour. Also, fundamental analysis and market sentiment should be taken into account.
Previous Open/High/Low/Close #
In trading, the “Previous Open/High/Low/Close” (or OHLC) refers to the opening, high, low and closing price of the instrument in the previous period. These prices are typically used in technical analysis to identify trends and patterns and to make trading decisions.
Some traders may also use the differences between the opening, high, low and closing prices to make trading decisions. For example, the difference between the closing and opening price (the so-called “true body”) and the high and low price (the so-called “upper shadow” and “lower shadow”) can indicate the strength of a trend, whether the bulls or bears are controlling the market, and can also give an idea of market volatility, and are also used as support and resistance levels.
It is important to keep in mind that, like any other technical indicator, OHLC does not give a definitive indication of future market direction and should be used in conjunction with other analytical tools, as well as fundamental analysis and market sentiment. It is also important to have appropriate risk management in place.
I want to highlight candle colors by #
The candle coloring feature allows the user to change the body color of candles/bars when using candles or bar graphics. There are six coloring modes available, most of which are based on the signal methodologies described earlier.
Candle coloring works on graphs using Heikin-Ashi, Renko, Kagi, line break, point and figure, and range candles.
Each of these modes can be enabled from the drop-down menu options of the candlestick tinting mode.
Volume Profile #
The Volume Profile is an advanced TradeMaster feature that displays the total traded volume at each price level during the user-defined period or the period shown on the chart (setting dependent). It can be used to identify key support and resistance levels, determine logical take profit and stop loss levels, identify balanced and unbalanced markets and determine trend strength. The basic components of the Volume Profile are: apex, trough, point of control (POC), value area (VA), High Volume Node (HVN) and Low Volume Node (LVN). To use Volume Profiles in trading, you need to look for pullbacks to high volume nodes or value areas, look for initial equilibrium pullbacks, find buy or sell opportunities for price reversals, and identify institutional order flow.
HVN stands for High Volume Node (here the volume is higher than average) Here you can have stronger support and resistance levels)
LVN Meaning Low Volume Node (Here the volume is lower than average) (There may be weaker support and resistance levels, and most of the time there are no support levels)
The largest peak is called the control point (this is the POC) . It is a good point to find the real market price of a coin. Many people say that above this point the mood is bullish, below it is bearish. It is a strong support if the price is above it and a strong resistance if the price is below it.
What is important to understand is that it is at the edges of the HVN (High Volume Node) ranges that we will find most of the support and resistance levels!
In addition to the indication of support and resistance zones, the volume profile can also be used to infer the speed of price movements. This gives you the utility of the other. The correlation is that at price levels where there is little trading volume (LVN), faster and more volatile price movements are expected. There is little support or resistance and the price may fall or rise faster to the next (HVN) zone.
It can also be used to define possible translation zones. Take the example of the break down of our current uptrend line. We expect a further decline. Where do the bulls reverse from? Strong support…. Fibonacci levels… Also from the “HVN” ranges. Strong buying forces are clustered here. We need to combine this idea with support levels and the Fibonacci retracement tool, then we will achieve the best success. Never use one indicator alone. Always look at the signals and monitor them.
Using Delta #
In the first section on water, we discuss colours. In the section framed in red, the colour green indicates that market purchases dominated at that price point. Red indicates that market sales dominated at that price point.
The second visual part is the width of the block. This shows the relative dominance of market buying or selling. A block with a large width indicates a strong dominance. If the block is very small, it indicates that the dominance was weak. In essence, it shows the size of the difference between buying and selling in addition to dominance (in the case of green, buyers dominated and the size of the block shows by how much)
In short: A volume profile is a histogram that shows the trading volume at certain price levels, how much was sold and how much was bought. The longer the histogram, the greater the trading volume at that price level and we can use this for the things we have just described. (left side)
And the delta shows which side was dominant at that price point and by how much. (right side)
A delta pedig azt, hogy melyik oldal volt a domináns az adott árponton és mennyivel. (Jobb oldal)
Value Area #
In the TradeMaster Ultimate Dashboard, a Value Area is a price range within which 70% of the total trading volume for a given period took place. The Value Area is made up of 3 components: the top of the Value Area (VAH), the bottom of the Value Area (VAL) and the Point of Control (POC). The POC is the single price level at which the highest volume of trading has taken place. The VAL represents the lowest price level within the range and the VAH represents the highest price level. To use the Value Area, traders look for price movements within the Value Area that indicate support and resistance levels. By identifying these levels, traders can identify buying and selling opportunities. In addition, traders can also look for price movements outside the Value Area (breakouts/breakdowns) as potential entry points.
The “Market Sessions” feature is a tool to help you keep track of the opening hours of different global financial markets. This is particularly useful for forex, stock and commodity exchanges where markets are open in different time zones around the world.
This feature allows traders to easily see which markets are open, closed or about to open, as well as understand when volume and volatility are at their highest. Higher volatility periods often offer more trading opportunities, but also higher risk.
The “Market Sessions” feature uses colour bars to represent different market periods on the chart, allowing traders to see market periods in a simple and intuitive way.
It is important to note that the opening hours of different markets can vary significantly and can affect the price of financial instruments.
Fibonacci Levels #
Fibonacci levels are technical analysis tools that help identify potential support and resistance levels. The automatic Fibonacci function automatically displays the levels 0.236; 0.382; 0.618; and 0.76 on the chart. These levels help traders to anticipate possible trend changes. Tips:
- Use these levels to identify potential entry and exit points..
- Watch for higher volume and candle formations at these levels as they often signal a trend change.
- Remember that these levels are not absolute, but potential resistance/support levels.
Inducement (Smart Money Trap) #
The “IDM” is the last bottom/peak within the internal structure where many retail SMC traders enter the market. These traders often enter at the nearest OB because that is where they find the shortest entry. Retail SMC traders are used as liquidity by market makers.