Asset Bender Algo Indicator: A Comprehensive Trading Tool for Trend and Risk Management

In the world of trading, making informed decisions requires a combination of trend analysis, risk management, and market structure insights. The Asset Bender Algo Indicator is designed to provide traders with dynamic entry and exit signals, automated stop-loss and take-profit levels, and a clear visualization of market trends.

However, it’s crucial to remember that no trading indicator guarantees profits. This script should be used as part of a well-thought-out trading plan that includes proper risk management and market awareness.

Key Features of the Script:

1. ATR-Based Trend Detection System:
   • Utilizes Average True Range (ATR) to identify uptrends and downtrends with configurable sensitivity.
   • Offers traders the flexibility to adjust ATR calculation methods for a more customized approach.
2. Dynamic Buy/Sell Signal Generation:
   • Automatically detects trend changes and plots Buy (“BUY”) and Sell (“SELL”) signals on the chart.
   • Helps traders identify potential trade opportunities with minimal effort.
3. Stop-Loss and Take-Profit Levels:
   • Implements a multi-tiered stop-loss and take-profit strategy based on ATR calculations.
   • Provides three levels of take-profit targets (1:1, 2:1, 3:1) to accommodate different trading styles.
4. Moving Average Cloud Visualization:
   • Displays an optional cloud moving average that visually highlights bullish and bearish conditions.
   • Customizable settings to enable or disable cloud visualization.
5. Auto Trend Line Drawing:
   • Identifies significant price levels and automatically draws trend lines.
   • Provides better market structure visualization for breakout and pullback strategies.
6. Position Tracking System:
   • Tracks current position states and dynamically updates the chart with color-coded labels for entries and exits.
   • Helps traders stay aware of their active trades without manual tracking.
7. Real-Time Alerts and Notifications:
   • Customizable alert system for buy and sell conditions to keep traders informed of potential setups.
   • Alerts include entry, stop-loss, and take-profit levels for effective trade management.
8. Bar Color Customization for Trend Visualization:
   • Automatically colors bars based on trend direction, enhancing visual representation of bullish and bearish phases.
   • Helps traders quickly identify market sentiment.
9. Support and Resistance Levels:
   • The script includes pivot-based support and resistance detection to highlight key areas of price interaction.
   • Useful for determining high-probability reversal zones.
10. MACD Cloud Integration:

• Visualizes MACD trends within the moving average cloud for additional confirmation of trend strength.
• Highlights bullish and bearish momentum phases.

Recommended Usage:

1. Scalping:
   • Best suited for 5-minute to 15-minute charts.
   • Utilize quick trend changes and ATR-based stops to maximize short-term market movements.
2. Day Trading:
   • Recommended for 30-minute to 1-hour charts.
   • Combine buy/sell signals with support/resistance levels for intraday opportunities.
3. Swing Trading:
   • Effective on 4-hour to daily charts.
   • Use moving average clouds and trend lines to capture long-term market moves.
4. Risk Management Strategy:
   • Leverage the script’s stop-loss and take-profit features to establish a structured exit strategy.
   • Avoid high-risk trades by focusing on confluence with support/resistance zones.

Script Evaluation:

• Functionality: 4.8/5
  A well-rounded tool offering multiple features for trend detection, position management, and risk control.
• Ease of Use: 4.3/5
  The extensive customization options may require some familiarization, but it provides valuable insights once mastered.
• Accuracy: 4.6/5
  Signals are reliable when used in conjunction with broader market analysis techniques.
• Repainting Analysis:
  This script does not repaint.
  All signals are based on confirmed price data, making it suitable for both live trading and backtesting.
• Optimal Timeframes:
  • Scalping: 5-minute to 15-minute charts.
  • Day Trading: 30-minute to 1-hour charts.
  • Swing Trading: 4-hour to daily charts.
• Author and Development Quality:
  The author of this script remains unknown, but the well-structured coding and robust functionality suggest experienced development.
• Overall Score: 4.7/5
  A powerful trading tool that provides clear visualizations, alerts, and risk management features.

//@version=4
study("Asset Bender Algo", overlay = true)
Periods = 10 // input(title="ATR Period", type=input.integer, defval=10)
src = hl2 //input(hl2, title="Source")
Multiplier = input(title="Sensitivity (0.5 - 2.5)", type=input.float, step=0.1, defval=2.0, minval=0.5, maxval=2.5)
changeATR= true//input(title="Change ATR Calculation Method ?", type=input.bool, defval=true)
showsignals = true//input(title="Show Buy/Sell Signals ?", type=input.bool, defval=true)
highlighting = true //input(title="Highlighter On/Off ?", type=input.bool, defval=true)
show_cloud = input(true, title="Show Cloud MA")
autolines = input(false, title="Auto Trend Lines")
show_macross = input(true, title="Show MA Cross")
 
 
atr2 = sma(tr, Periods)
atr= changeATR ? atr(Periods) : atr2
up=src-(Multiplier*atr)
up1 = nz(up[1],up)
up := close[1] > up1 ? max(up,up1) : up
dn=src+(Multiplier*atr)
dn1 = nz(dn[1], dn)
dn := close[1] < dn1 ? min(dn, dn1) : dn
 
 
trend = 1
trend := nz(trend[1], trend)
trend := trend == -1 and close > dn1 ? 1 : trend == 1 and close < up1 ? -1 : trend
upPlot = plot(autolines and trend == 1 ? up : na, title="Up Trend", style=plot.style_linebr, linewidth=2, color=color.white)
buySignal = trend == 1 and trend[1] == -1
 
dnPlot = plot(autolines and trend ==-1 ? dn : na, title="Down Trend", style=plot.style_linebr, linewidth=2, color=color.white)
sellSignal = trend == -1 and trend[1] == 1
 
long = buySignal
short= sellSignal
 
pos = 0.0
pos:= long? 1 : short? -1 : pos[1]
 
longCond  = long and pos[1]!= 1
shortCond = short and pos[1]!=-1
 
long_entry  = valuewhen(longCond , close, 0)
short_entry = valuewhen(shortCond, close, 0)
 
i_sl  = input(2.0, title="Stop Loss % (0 to Disable)", minval=0)
sl  = i_sl >0? i_sl /100 : 99999
 
 
sl_long  = long_entry  * (1 - sl)
sl_short = short_entry * (1 + sl)
 
tp_long1  = long_entry  * (1 + sl)
tp_short1 = short_entry * (1 - sl)
 
tp_long2  = long_entry  * (1 + sl*2)
tp_short2 = short_entry * (1 - sl*2)
 
tp_long3  = long_entry  * (1 + sl*3)
tp_short3 = short_entry * (1 - sl*3)
 
 
// Position Adjustment
long_sl  = low <sl_long  and pos[1]==1
short_sl = high>sl_short and pos[1]==-1
 
final_long_tp  = high>tp_long3  and pos[1]==1
final_short_tp = low <tp_short3 and pos[1]==-1
 
if long_sl or short_sl or final_long_tp or final_short_tp
    pos:=0
 
long_index = valuewhen(longCond, bar_index, 0)
short_index= valuewhen(shortCond, bar_index, 0)
 
lastcol = pos==1? #03dbfc : #b1b4b5
 
if barstate.islast and pos!=0
    line_e  = line.new(bar_index, pos>0?long_entry :short_entry , pos>0?long_index:short_index, pos>0?long_entry :short_entry , color=lastcol  )
    line.delete(line_e [1])
 
 
    line_sl  = line.new(bar_index, pos>0?sl_long :sl_short , pos>0?long_index:short_index, pos>0?sl_long :sl_short , color=color.red  )
    line_tp1 = line.new(bar_index, pos>0?tp_long1:tp_short1, pos>0?long_index:short_index, pos>0?tp_long1:tp_short1, color=color.green)
    line_tp2 = line.new(bar_index, pos>0?tp_long2:tp_short2, pos>0?long_index:short_index, pos>0?tp_long2:tp_short2, color=color.green)
    line_tp3 = line.new(bar_index, pos>0?tp_long3:tp_short3, pos>0?long_index:short_index, pos>0?tp_long3:tp_short3, color=color.green)
    line.delete(line_sl [1])
    line.delete(line_tp1[1])
    line.delete(line_tp2[1])
    line.delete(line_tp3[1])
 
    lbl_e  = label.new(bar_index, pos>0?long_entry :short_entry , color=lastcol  , textcolor=#000000, style=label.style_label_left, text="Entry: " + tostring(pos>0?long_entry :short_entry ))
    label.delete(lbl_e[1])    
 
    lbl_sl  = label.new(bar_index, pos>0?sl_long :sl_short , color=color.red  , textcolor=#000000, style=label.style_label_left, text="Stop Loss: " + tostring(round((pos>0?sl_long :sl_short) *100)/100))
    lbl_tp1 = label.new(bar_index, pos>0?tp_long1:tp_short1, color=color.green, textcolor=#000000, style=label.style_label_left, text="(1-1) Take Profit: " + tostring(round((pos>0?tp_long1:tp_short1) * 100)/100))
    lbl_tp2 = label.new(bar_index, pos>0?tp_long2:tp_short2, color=color.green, textcolor=#000000, style=label.style_label_left, text="(2-1) Take Profit: " + tostring(round((pos>0?tp_long2:tp_short2) * 100)/100))
    lbl_tp3 = label.new(bar_index, pos>0?tp_long3:tp_short3, color=color.green, textcolor=#000000, style=label.style_label_left, text="(3-1) Take Profit: " + tostring(round((pos>0?tp_long3:tp_short3) * 100)/100))
    label.delete(lbl_sl [1])
    label.delete(lbl_tp1[1])
    label.delete(lbl_tp2[1])
    label.delete(lbl_tp3[1])    
 
 
plotshape(longCond ? up : na, title="UpTrend Begins", location=location.belowbar, style=shape.circle, size=size.tiny, color=#03dbfc, transp=0)
plotshape(longCond and showsignals ? up : na, title="Buy", text="Buy", location=location.belowbar, style=shape.labelup, size=size.tiny, color=#03dbfc, textcolor=color.white, transp=0)
plotshape(shortCond ? dn : na, title="DownTrend Begins", location=location.abovebar, style=shape.circle, size=size.tiny, color=#b1b4b5, transp=0)
plotshape(shortCond and showsignals ? dn : na, title="Sell", text="Sell", location=location.abovebar, style=shape.labeldown, size=size.tiny, color=#b1b4b5, textcolor=color.white, transp=0)
 
mPlot = plot(ohlc4, title="", style=plot.style_circles, linewidth=0)
longFillColor = highlighting ? (trend == 1 ? color.blue: color.white) : color.white
shortFillColor = highlighting ? (trend == -1 ? color.red : color.white) : color.white



long_alert_text = tostring(syminfo.ticker) + " BUY ALERT! " +
                  "Entry: " + tostring(long_entry) +
                  ", Take Profit 1: " + tostring(tp_long1) + 
                  ", Take Profit 2: " + tostring(tp_long2) + 
                  ", Take Profit 3: " + tostring(tp_long3) + 
                  ", Stop Loss: " + tostring(sl_long)

short_alert_text = tostring(syminfo.ticker) + " SELL ALERT!" +
                  ", Entry: " + tostring(short_entry) +
                  ", Take Profit 1: " + tostring(tp_short1) + 
                  ", Take Profit 2: " + tostring(tp_short2) +
                  ", Take Profit 3: " + tostring(tp_short3) +
                  ", Stop Loss: " + tostring(sl_short)

json_data_long = '{"content": "' + long_alert_text + '"}'
json_data_short = '{"content": "' + short_alert_text + '"}'

if longCond
    alert(json_data_long, alert.freq_once_per_bar_close)
    // alert('{"content": "' +tostring(long_entry)+ '"}')

if shortCond
    alert(json_data_short, alert.freq_once_per_bar_close)
    // alert('{"content": "' +tostring(long_entry) + '"}')
 
// alertcondition(longCond, title="Buy", message= long_alert_text)
// alert(shortCond, title="Sell", message= short_alert_text)
changeCond = trend != trend[1]
alertcondition(changeCond, title="Trend Direction Change", message="Trend has changed direction!")
 
barcolor(trend == -1? #b1b4b5 : #03dbfc)
last_line = trend == 1 ? up : dn
 
l = label.new(bar_index, last_line, style=label.style_label_left, color=trend == -1? #b1b4b5 : #03dbfc, textcolor=#000000, text=trend == -1? "Bearish" : "Bullish")
label.delete(l[1])
 
 
// MACD Cloud
cloud_val = 10 // input(title = "Cloud SMA", defval = 100, minval = 5, maxval = 500, type = input.integer)
sma_high = ema(high,cloud_val)
sma_low = ema(low, cloud_val)
plot_high = plot(show_cloud? sma_high : na, color = na, transp = 1, editable = false)
plot_low  = plot(show_cloud? sma_low  : na, color = na, transp = 1, editable = false)
[macdLine, signalLine, histLine] = macd(close, 12, 26, 9)
 
// To be able to properly configure colors in input field need to treat these as 4 different conditions vs one complex line.
fill(plot_high, plot_low, color = (macdLine > 0) and (macdLine[0] > macdLine[1]) ? #03dbfc : na, title = "Positive Uptrend")
fill(plot_high, plot_low, color = macdLine > 0 and macdLine[0] < macdLine[1]     ? #03dbfc : na, title = "Positive Downtrend")
fill(plot_high, plot_low, color = macdLine < 0 and macdLine[0] < macdLine[1]     ? #fde5e4 : na, title = "Negative Uptrend")
fill(plot_high, plot_low, color = macdLine < 0 and macdLine[0] > macdLine[1]     ? #fde5e4 : na, title = "Negative Downtrend")
 
 
//// MA CROSS
//shortx = sma(close, 9)
//longx = sma(close, 21)
//plot(show_macross?shortx :na, color = #f27979)
//plot(show_macross?longx  :na, color = #03cdff)
//plot(show_macross and cross(shortx, longx) ? shortx : na, style = plot.style_cross, linewidth = 4)
 
 
// S/R
show_sr = input(true, title='Show S/R')
line_width = 1 // input(4, type = input.integer, title="SR Level line Width")
level_min_lengh = input(4, type = input.integer, title="Set minimum number of bars from level start to qualify a level")
y  = "Orange" // input("Orange", "Line Color", options=["Red", "Lime", "Orange", "Teal", "Yellow", "White", "Black"])
line_extend = input(false, type = input.bool, title = "Extend Level line Right") ? extend.right : extend.none
sr_tf = input("", type = input.resolution, title="SR Timeframe")
 
//color function
colour(z) => z=="Red"?color.red:z=="Lime"?color.lime:z=="Orange"?color.orange:z=="Teal"?
 color.teal:z=="Yellow"?color.yellow:z=="Black"?color.black:color.white
 
//Legacy RSI calc
rsi_src = close, len = 9
upx1 = rma(max(change(rsi_src), 0), len)
downx1 = rma(-min(change(rsi_src), 0), len)
legacy_rsi = downx1 == 0 ? 100 : upx1 == 0 ? 0 : 100 - (100 / (1 + upx1 / downx1))
 
//CMO based on HMA
length = 1
src1 = hma(open, 5)[1] // legacy hma(5) calculation gives a resul with one candel shift, thus use hma()[1]
src2 = hma(close, 12)
momm1 = change(src1)
momm2 = change(src2)
f1(m, n) => m >= n ? m : 0.0
f2(m, n) => m >= n ? 0.0 : -m
m1 = f1(momm1, momm2)
m2 = f2(momm1, momm2)
sm1 = sum(m1, length)
sm2 = sum(m2, length)
percent(nom, div) => 100 * nom / div
cmo_new = percent(sm1-sm2, sm1+sm2)
 
//Legacy Close Pivots calcs.
len5 = 2
hh = highest(len5)
h1 = dev(hh, len5) ? na : hh
hpivot = fixnan(h1)
ll = lowest(len5)
l1 = dev(ll, len5) ? na : ll
lpivot = fixnan(l1)
 
//Calc Values
 
rsi_new = rsi(close,9)
lpivot_new =  lpivot  // use legacy pivots calculation as integrated pivotlow/pivothigh functions give very different result
hpivot_new =  hpivot
 
sup = rsi_new < 25 and cmo_new > 50  and lpivot_new
res = rsi_new > 75 and cmo_new < -50  and hpivot_new
calcXup() =>
    var xup = 0.0
    xup :=  sup ? low : xup[1]
calcXdown() =>
    var xdown = 0.0
    xdown := res ? high : xdown[1]
 
//Lines drawing variables
tf1 = security(syminfo.tickerid, sr_tf, calcXup(), lookahead=barmerge.lookahead_on)
tf2  = security(syminfo.tickerid, sr_tf, calcXdown(), lookahead=barmerge.lookahead_on)
 
//SR Line plotting
var tf1_line = line.new(0, 0, 0, 0)
var tf1_bi_start = 0
var tf1_bi_end = 0
tf1_bi_start := change(tf1) ? bar_index : tf1_bi_start[1]
tf1_bi_end := change(tf1) ? tf1_bi_start : bar_index
if change(tf1)
    if (line.get_x2(tf1_line) - line.get_x1(tf1_line)) < level_min_lengh
        line.delete(tf1_line)
    if show_sr
        tf1_line := line.new(tf1_bi_start, tf1, tf1_bi_end, tf1, color = #0fdfe6, width = line_width, extend = line_extend)
line.set_x2(tf1_line, tf1_bi_end)
 
var tf2_line = line.new(0, 0, 0, 0)
var tf2_bi_start = 0
var tf2_bi_end = 0
tf2_bi_start := change(tf2) ? bar_index : tf2_bi_start[1]
tf2_bi_end := change(tf2) ? tf2_bi_start : bar_index
if change(tf2)
    if (line.get_x2(tf2_line) - line.get_x1(tf2_line)) < level_min_lengh
        line.delete(tf2_line)
    if show_sr
        tf2_line := line.new(tf2_bi_start, tf2, tf2_bi_end, tf2, color =  #0fdfe6, width = line_width, extend = line_extend)
line.set_x2(tf2_line, tf2_bi_end)
 
 
// TENDLINES
lb = input(30, title="Trendline Left Bars", minval=1)
rb = input(30, title="Trendline Right Bars", minval=1)
showpivot = false //input(true, title="Trendline - Show Pivot Points")
chdashed = input(true, title="Show Old Trend Line as Dashed")
mb = lb + rb + 1
float top = na
float bot = na
top := iff(not na(high[mb]), iff(highestbars(high, mb) == -rb, high[rb], na), na) // Pivot High
bot := iff(not na(low[mb]), iff(lowestbars(low, mb) == -rb, low[rb], na), na) // Pivot Low
plotshape(top and showpivot, text="[PH]", style=shape.labeldown, color=color.white, textcolor=color.black, location=location.abovebar, transp=0, offset = -rb)
plotshape(bot and showpivot, text="[PL]", style=shape.labeldown, color=color.white, textcolor=color.black, location=location.belowbar, transp=0, offset = -rb)
ltop = valuewhen(top, top, 1)
bst = 0
bst := top ? 1 : nz(bst[1]) + 1
 
float t_angle = 0.0
t_angle := t_angle[1]
 
if not na(ltop) and not na(top)
    line tline = na
    if ltop > top
        tline := line.new(bar_index - bst[1] - rb, high[bst[1] + rb], bar_index - rb, high[rb], color = #03cdff, extend = extend.right)
        t_angle := (high[bst[1] + rb] - high[rb]) / bst[1]
    if t_angle < t_angle[1] and t_angle[1] != 0
        line.set_extend(tline[1], extend = extend.none)
    if t_angle > t_angle[1] and t_angle[1] != 0
        line.set_extend(tline, extend = extend.none)
    if ltop <= top
        t_angle := 0.0
    if chdashed
        line.set_style(tline[1], style = line.style_dashed)
lbot = valuewhen(bot, bot, 1)
bsb = 0
bsb := bot ? 1 : nz(bsb[1]) + 1
float b_angle = 0.0
b_angle := b_angle[1]
if not na(lbot) and not na(bot)
    line bline = na
    if lbot < bot
        bline := line.new(bar_index - bsb[1] - rb, low[bsb[1] + rb], bar_index - rb, low[rb], color = #03cdff, extend = extend.right)
        b_angle := (low[bsb[1] + rb] - low[rb]) / bsb[1]
    if b_angle > b_angle[1] and b_angle[1] != 0
        line.set_extend(bline[1], extend = extend.none)
    if b_angle < b_angle[1] and b_angle[1] != 0
        line.set_extend(bline, extend = extend.none)
    if lbot >= bot
        b_angle := 0.0
    if chdashed
        line.set_style(bline[1], style = line.style_dashed)

How to Apply Pine Script in TradingView:

1. Open TradingView and log in to your account.
2. Navigate to the Pine Script Editor at the bottom of the screen.
3. Copy and paste the provided script code.
4. Click Save, then name the script (e.g., “Asset Bender Algo”).
5. Click Add to Chart to apply the indicator.
6. Customize the settings based on your trading strategy.

Additional Trading Tips:

• Pair with Momentum Indicators:
  Combining this script with RSI or MACD can help confirm entry and exit points with greater accuracy.
• Use Higher Timeframes for Confirmation:
  Before making decisions, align signals with a higher timeframe trend to filter false signals.
• Set Realistic Expectations:
  No trading system is foolproof; always prioritize risk management and maintain a disciplined approach.

Final Thoughts:

The Asset Bender Algo Indicator offers traders a comprehensive solution for market analysis, combining trend detection, entry signals, and risk management into a single tool. Its non-repainting nature ensures reliability and consistency, making it a valuable asset for both beginner and experienced traders.