Nostradamus 2.0

The Nostradamus 2.0 indicator is a comprehensive trend-following and momentum toolkit that combines multiple technical analysis methods to identify high-probability trade setups. By integrating MACD, RSI, Ichimoku, and several Moving Averages, the script provides a multi-layered approach to market analysis, suitable for identifying trend reversals and exhaustion points.

Usage

This tool is designed to be a versatile strategy and analysis environment. It is particularly effective on the 1-hour timeframe as suggested by the original design.

• Trend Identification: The script uses a combination of a 200 SMA and shorter EMAs (20 and 80) to establish the primary market regime.
• Momentum & Divergence: Built-in MACD and PPO logic help identify momentum shifts and potential price-oscillator divergences.
• Overbought/Oversold: The RSI logic highlights exhaustion levels when the indicator crosses user-defined thresholds (defaulting to 74 and 24).
• Price Action Patterns: The script automatically detects and labels various candlestick patterns including Doji, Harami, and Engulfing bars, which can be used as entry triggers or exit signals.
• Ichimoku Cloud: Components like the Tenkan-Sen and Kijun-Sen are plotted to provide additional support and resistance context.

Details

The script executes a built-in backtesting strategy based on RSI and SMA crossovers. It utilizes a logic where "Compra" (Long) entries are triggered when the RSI(2) is oversold while the price remains above the 200 SMA. Conversely, "Venda" (Short) entries occur when the RSI is overbought and price is below the 200 SMA. The tool also incorporates Bollinger Bands and Ichimoku displacement for a comprehensive view of volatility and future trend expectations.

Settings

General & Strategy

• Fast/Slow MA Source & Period: Configures the primary EMAs used for trend direction.
• Invert Trade Direction: Allows the user to flip the strategy logic.
• Take Profit / Stop Loss: Quantitative inputs for risk management, including trailing stop functionality.

MACD + EMA

• MACD Parameters: Standard fast, slow, and signal lengths for the MACD calculation.
• Very Slow MA: A long-term baseline (default 200) for trend filtering.
• Visual Toggles: Options to enable/disable bar coloring and background highlights based on trend consensus.

Overbought/Oversold

• RSI Period: The lookback for the RSI calculation.
• Thresholds: Customizable levels for identifying overbought and oversold conditions.

Ichimoku & Bands

• Ichimoku Periods: Configurable lengths for Turning (9), Standard (26), and Span 2 (52) lines.
• BB Length/Mult: Standard Bollinger Band parameters for volatility measurement.

Price Action

• Doji/Harami Sensitivity: Controls the wick-to-body ratio and pip size requirements for pattern detection.
• Pattern Visibility: Toggles for showing bar names and highlighting specific candlestick formations.

FAQ

How do I use the price action labels?

Labels like "doji_up" or "bullish_englf" appear on the chart when specific candlestick criteria are met. These are often used as confirmation signals when the price is near a major EMA or Ichimoku level.

Can I change the strategy's risk parameters?

Yes, the "Strategy Risk" section in the settings allows you to set specific point-based Take Profit, Stop Loss, and Trailing Stop values.

How do I access Nostradamus 2.0?

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