High/low crypto strategy with MACD/PSAR/ATR/EWave

The Crypto strategy high/low indicator is a multi-component trend-following system designed specifically for cryptocurrency markets to identify high-probability entries using momentum and volatility filters.

Usage

The indicator is optimized for higher timeframes, such as the 1H, 4H, and 1D charts, with the 1H timeframe being the preferred interval for crypto pairs like BTCUSD or BTCUSDT. It combines multiple technical layers to confirm a trend before executing a trade.

A Long position is triggered when:

• There is a succession of higher highs.
• The MACD histogram is positive.
• PSAR indicates an uptrend.
• The ATR-based trend direction is bullish (Green).
• The Elliot Wave Oscillator confirms the move.

A Short position is triggered when:

• There is a succession of lower lows.
• The MACD histogram is negative.
• PSAR indicates a downtrend.
• The ATR-based trend direction is bearish (Red).
• The Elliot Wave Oscillator confirms the move.

The strategy is built around a high Risk/Reward ratio (typically 1:30), allowing for profitability even with a lower win rate (between 10-20%).

Details

The script integrates several classic and modified technical concepts to filter market noise:

• Price Action: Uses local high/low points to detect immediate structural shifts.
• Momentum: Employs MACD and the Elliot Wave Oscillator to measure price velocity.
• Trend Following: Uses Parabolic SAR and a modified Moving Average/ATR combination (CCI-based) to define the primary market direction.
• Risk Management: Includes built-in percentage-based stop loss and take profit levels. By default, it targets a 15% move with a 0.5% stop loss.

Settings

MACD

• Fast Length: The period for the shorter moving average.
• Slow Length: The period for the longer moving average.
• Source: The price data used for calculations.
• Signal Smoothing: The smoothing period for the MACD signal line.
• Simple MA (Oscillator/Signal): Toggles between SMA and EMA for the MACD components.

PSAR

• SAR Start: The initial acceleration factor.
• SAR Increment: The increment step for the acceleration factor.
• SAR Maximum: The cap for the acceleration factor.

ATR/Trend

• CCI Length: The period for the Commodity Channel Index used in trend detection.
• ATR Length: The period for Average True Range volatility measurement.
• Multiplier: The multiplier applied to the ATR.
• Original Coloring: Toggles the visual coloring logic for the trend.

Elliot Wave (EWave)

• EWave SMA1/SMA2 Length: The periods for the two SMAs used in the oscillator calculation.
• Show Dif as percent: Calculates the oscillator as a percentage of price rather than absolute value.

Strategy

• Take Profit %: The target profit percentage.
• Stop Loss %: The maximum allowed loss percentage.

FAQ

How do I use this strategy for different crypto pairs?

While optimized for BTC, you can adjust the ATR multiplier and EMA lengths in the settings to better fit the volatility of altcoins.

What is the recommended timeframe?

The script performs best on the 1H timeframe, as it captures significant moves while filtering out the noise common in lower timeframes.

How do I access the Crypto strategy high/low?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.