Swing Arm ATR X Signal Table (intermediate)

Swing Arm ATR X Signal Table

Notes:

These indicators and concepts are specifically designed for TradingView.com

All indicator breakdowns will be found in the indicators tab on the home page of: STRATEGY

Indicators:

Go into INDICATORS and type in Black Flag

Go into the SETTINGS of the blackflag and turn off the extremum, LS1-LS3, SS1-SS3. Change the ATR factor to 6 for the blackflag

Go to indicators and type in Signal Table

‍

Go into the SETTINGS of the Signal Table and turn off the Tables

‍

How to Execute Long:

The following paramaters must all happen not necessarily in any order

1. The price must have a green hazing below the stock
2. The MA must have a cross over of green over red and price breaking above the MA. (The two solid red and green lines must have green cross over red).
3. Set a stop loss below the MA crossover
4. Exit trade when MA crosses back under with red over green

In Lehmans Terms: If there is a green haze below the stock, and the green line has crossed above red, and while all this is happening the stock is above ALL of the lines, price is likely to rise.

How to Execute Short:

The following paramaters must all happen but not in any order

1. The price must have a red hazing above the stock
2. The MA must have a cross over of red over green and price breaking below the MA
3. Set a stop loss below the MA crossover
4. Exit trade when MA crosses back under with green over red

In Lehmans Terms: If there is a red haze above the stock, and the green line has crossed below the red, and while all this is happening the stock is above below of the lines, price is likely to fall.  

This next part is an advanced breakdown so don't feel overwhelmed, this doesn't need to be memorized.

How does Swing Arm ATR work?

Swing Arm ATR (Average True Range) is a technical indicator that is designed to help traders identify potential trends, support and resistance levels, and volatility in the market. It is a modified version of the ATR indicator that uses a moving average to smooth out the ATR data and provide a more accurate representation of the underlying trend.

The Swing Arm ATR indicator is calculated in the following steps:

1. Calculate the ATR over a specified period of time, typically 14 periods.
2. Calculate a moving average of the ATR data over a specified period of time, typically 7 periods.
3. Calculate the upper and lower bounds of the Swing Arm ATR by adding or subtracting the moving average from the current price.

A trader would typically plot the average true range over a certain period of time (e.g., 14 days) and then multiply that value by a certain factor (e.g., 3). The resulting value is then added to or subtracted from the current price of the asset to determine potential buy or sell levels.

For example, if the swing arm ATR value is 3 times the average true range and the current price of the asset is $100, a trader might consider buying the asset if its price falls to $97 (i.e., $100 - (3 x ATR value)) or selling it if its price rises to $103 (i.e., $100 + (3 x ATR value)).

The Swing Arm ATR pulls data from the market in real-time to perform its calculations. It uses the high, low, and close prices of each period to calculate the ATR, which is a measure of the average price range of each period. The ATR is then smoothed out using a moving average to provide a more accurate representation of the underlying trend. Traders use the Swing Arm ATR to identify potential support and resistance levels, as well as to gauge the level of volatility in the market. When the Swing Arm ATR is trending upward, it indicates that volatility is increasing, and traders may expect larger price movements. Conversely, when the Swing Arm ATR is trending downward, it suggests that volatility is decreasing, and traders may expect smaller price movements.

How does the Signal Table work?

These tables are typically created by traders or analysts who have developed specific trading strategies and want to automate the process of identifying potential trading opportunities. Signal tables work by using predefined rules and parameters to analyze market data and generate signals. These rules and parameters can be based on technical indicators, such as moving averages, relative strength index (RSI), or Bollinger bands, as well as fundamental factors, such as economic data, earnings reports, or news events. To calculate signals, the signal table first pulls data from the market, which can include price data, volume data, and other market indicators. The data is then analyzed according to the predefined rules and parameters to identify potential trading opportunities.

For example, a signal table based on moving averages may generate a buy signal when the short-term moving average crosses above the long-term moving average, while a sell signal may be generated when the short-term moving average crosses below the long-term moving average.

Similarly, a signal table based on economic data may generate a buy signal when a specific economic indicator, such as the unemployment rate or GDP growth, exceeds a predefined threshold, while a sell signal may be generated when the same indicator falls below the threshold. Once signals are generated, traders can use them to inform their trading decisions. For example, a trader may choose to enter a long position when a buy signal is generated and exit the position when a sell signal is generated. Signal tables can be used in a variety of trading strategies, including swing trading, trend following, and mean reversion. However, it is important to note that no trading strategy or signal table is foolproof and traders should always conduct their own analysis and risk management to mitigate potential losses.