Signals & Overlays™ is an all-in-one toolkit made up of more than 20+ features primarily focused on generating useful signals & overlays to fulfill any trader's technical analysis needs with relevant data.

Created directly with TradingView Pine Script Wizard, alexgrover - this is a first of its kind comprehensive script made fully from the ground-up to provide an all-in-one solution for traders.

Signals & Overlays™ can be used alongside other forms of technical analysis, however, it was also designed to be used as a stand-alone toolkit that can fit any trading style. Every feature included considers how not all technical indicators fit every market condition.

The ideal way to utilize this indicator is to explore through all of the features over time, pick & choose 2-3 features best suit your style of trading, and stick with those to create your own unique LuxAlgo trading strategy.

Providing Endless Possibilities Catering To All Trading Styles

Signals & Overlays™ works in any market for discretionary analysis & includes many features:

• Beginner-friendly Presets to enable multiple features at once within one-click (locks other settings when enabled).
• Confirmation Signals: Normal & Strong signals to help traders confirm trends (not to be followed blindly).
• Contrarian Signals: Normal & Strong to help traders spot reversals (also not to be followed blindly).
• Exit Signals: "x" marks that apply for both Confirmation Signals & Contrarian Signals to suggest potential take-profit areas during signals.
• Signal Optimization Methods: Sensitivity / Agility, optimal sensitvity parameter displayed on dashboard, and Autopilot (dynamic setting).
• Candle Coloring: Purple/Green/Red to visualize trends developing between 'normal' & 'strong'.
• 6+ Indicator Overlays that helps traders visualize trends, find reversal points, and get dynamic areas of support & resistance.
• Filters within "Presets / Filters" to allow users to filter Confirmation Signals with Indicator Overlays & other metrics within LuxAlgo Premium.
• A complete dashboard with highly actionable metrics such as Trend Strength, current volatility, volume analysis, etc.
• Advanced Settings to display customizable TP/SL points, further enhance signal optimizations, & customize dashboard size/location.
• Full Any Alert() Function Call Conditions included
• Highly useful Filtered Alert Creator section to generate custom filtered signal alerts with Indicator Overlays & other metrics.

• more. (Check the changelog below for current features)

USAGE

Basic Signals & Candle Coloring Demonstration

In the image below we can see a basic example of how these 2 core components function within Signals & Overlays™.

As explained earlier, the Confirmation Signals can generate normal labels as well as strong labels marked by the "+" symbol. These signals are directly correlated to the candle coloring in order to see the development of trends & navigate through different market conditions as best as possible.

The candle coloring comes especially in handy when using signals, whereas a positive sign for an uptrend to occur rather than a fake-out is to see candles consistently hold as green. This indicates the market is strong & is likely to continue an uptrend. Vice versa for sell signals & the candles holding as red.

Normal Confirmation Signals often occur with smaller trends, retracements within larger trends, or just as signals a user may not want to trust as much directly. In order to enhance your ability to trust signals more & find more actionable use cases out of LuxAlgo Premium, we recommend going to the settings menu of the indicator & activating some indicator overlays. These are covered in the next section.

INDICATOR OVERLAYS W/ SIGNALS

In the image below we have enabled the "Smart Trail" & "Reversal Zones" indicator overlays from within the settings of Signals & Overlays™. By using these overlays alongside the signals & candle coloring, users can find more confluence to create trading strategies or plans.

The Smart Trail provides an excellent area of dynamic support/resistance for traders, as well as an additional confluence for general trend following purposes alongside the Confirmation Signals.

The Reversal Zones are particularly useful for areas to immediately take profit on trades, however, during strong trends price may continue rising or falling through the Reversal Zones which makes a good use case of waiting for price to first exit the Reversal Zones before considering the next move in the market.

In the next image below we can see the market is generally ranging, making it more complicated for the standard Confirmation signals to perform greatly as they are meant to excel for finding developing trends. This image displays the Contrarian Signal Mode, Contrarian Gradient candle coloring, as well as the Trend Catcher Indicator Overlay to help us trade these market conditions specifically.

Paired with the Contrarian based candle coloring, these signals can be helpful to a trader looking to find confluent reversals. You can also see the Trend Catcher indicator overlay gives a hybrid approach to analyzing the underlying trend within this price action.

Some traders naturally are Contrarian in nature, so this signal mode may be of primary interest to them, however, most of the use cases will come from the standard Confirmation sigals paired with other overlays or regular technical analysis.

SIGNALS WITH AI CLASSIFICATION

Our toolkit is able to classify generated signals using a simple machine learning algorithm into four levels. These levels indicate if a signal will most likely indicate a trend continuation (level 3/4) or a reversal/retracement (1/2).

Users are able to filter out certain signals depending on their classification, only keeping signals of interest and potential filtering out false signals.

FILTERS

In the next image below we can see after resetting the Signals & Overlays™ indicator to it's defaults, we have simply enabled the "Smart Trail Filter" from within the Presets / Filters section at the top of the settings.

By doing this, we can filter out signals that are not aligned with the Smart Trail indicator overlay, which gives direct confluence in every signal that generates on the chart.

Applying filters to signals do not necessarily make them instantly "better" than using the indicator without them. Between every technical indicator, there are trade-offs. So while we can now use Confirmation signals & retests of the Smart Trail as great optimal entry points, at times the indicator may miss signals or retests of the Smart Trail.

The same is seen below with another one of the Filters within Signals & Overlays™; Trend Strength Filter.

We can see the indicator is using the Trend Strength metric to only generate Confirmation Signals that align with a trending market which can clean up a lot of noise during retracements as well as ranging markets.

However, the trade-off present now with this filter enabled is that at times the indicator will miss trends, in which we'd still need to be aware of the price action, candle coloring, or other forms of analysis to give us indications the market may start a new trend opposed to just relying on signals directly.

CONCLUSION

We believe that success lies in the association of the user with the indicator, opposed to many traders who have the perspective that the indicator itself can make them become profitable. The reality is much more complicated than that.

The aim is to provide an indicator comprehensive, customizable, and intuitive enough that any trader can be led to understand this truth and develop an actionable perspective of technical indicators as support tools for decision making.

You can see the Author's instructions below to get instant access to this indicator & our LuxAlgo Premium indicator suite.

RISK DISCLAIMER

Trading is risky & most day traders lose money. All content, tools, scripts, articles, & education provided by LuxAlgo are purely for informational & educational purposes only. Past performance does not guarantee future results.