Golden buy for cryptofutures (alerts for 3 commas/finandy)

The Golden buy indicator is a comprehensive technical analysis tool designed for cryptocurrency futures trading, combining elements of the Market Cipher B and the Hammers & Stars strategy. It aims to identify high-probability entry points by analyzing divergences and wave trends to capture trend reversals or continuations.

Usage

The indicator is primarily used to identify long and short entry signals based on momentum and price action divergences. For long positions, it looks for bullish divergences where price makes a lower low but the oscillator makes a higher low. For short positions (which can be toggled in settings), it identifies bearish divergences.

The script integrates an automated risk management system using the Average True Range (ATR) to set stop-loss levels and a fixed Risk:Reward (R:R) ratio for take-profit targets. Additionally, it features built-in alert templates compatible with automation platforms like 3Commas and Finandy, allowing for seamless execution of trades based on the indicator's logic.

Details

The script's architecture is a fusion of two well-known trading methodologies:

• Oscillator Logic: It utilizes a WaveTrend oscillator (inspired by VuManChu's Cipher B) to track market momentum and money flow.
• Divergence Detection: It implements fractal-based divergence logic to spot discrepancies between price and momentum.
• Money Flow Index (MFI): A modified RSI-MFI component visualizes capital movement within the asset.
• Schaff Trend Cycle (STC): Included to provide a secondary trend confirmation and filter out market noise.

Settings

Strategy Settings

• Stop Loss ATR: Multiplier for the ATR-based stop loss (e.g., 2x ATR).
• R:R: The desired Risk-to-Reward ratio for calculating take-profit levels.
• Short ON?: Enables or disables the generation of short-selling signals.
• Divergences ON?: Toggles the divergence detection logic for entry signals.

Oscillator Settings

• WT Channel/Average Length: Controls the smoothing and period of the WaveTrend oscillator.
• OB/OS Levels: Customizable overbought and oversold thresholds for the WaveTrend and RSI components.
• MFI Period/Multiplier: Adjusts the sensitivity and visual scaling of the Money Flow Index area.
• Schaff TC Settings: Parameters for the Schaff Trend Cycle, including fast and slow lengths.

FAQ

How do I use the alerts for automation?

The script includes specific alert templates in the code comments for 3Commas and Finandy. You can set up a TradingView alert using the "Any alert() function call" condition to trigger your bots.

Can I use this for assets other than Crypto?

While optimized for cryptocurrency futures, the momentum and divergence logic can be applied to other volatile markets like Forex or Equities, provided you adjust the ATR and R:R settings accordingly.

How do I access Golden buy?

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