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[Tutorial][PREMIUM] Algorithm Builder - Multiple Trends

Introduction

This indicator is available only to our PREMIUM users. Our PREMIUM indicators offer more trading analysis capabilities and opportunities.
A few words of caution: the Algorithm Builders - Multiple Trends are more as advanced and as such, would require slightly more time to be mastered. They're not that much difficult, but we understand that designing a trading system with 2 trends might be slightly more complicated - however, there is nothing to be scared of :).
The time spent to learn how to use our PREMIUM tools might be rewarded handsomely.
For more information, regarding our packages, please visit our Pricing page

The Algorithm Builder - Multiple Trends is made to detect the convergence of many unrelated indicators and give a BUY or SELL signal whenever all the selected sub-indicators are converging in the same direction.
This is an upgrade of the PRO package giving access to the Algorithm Builder - Single Trend - designed to show 1 unique entry per trend - In contrast, the Multiple Trends offers re-entries in the same direction of the trend if the indicator detects functional convergences to accumulate more positions.
We'll detail everything you need to know in that article a little further down.

Video Tutorial

This video was made for the Algorithm Builder - Multiple Trends+ (Plug&Play).
This is a more advanced edition but, contains all the features from the Multiple Trends anyway.
The video will still be very helpful to understand how this indicator works.

Multiple Trends versus Single Trend

A friend asked us recently Why using the Multiple Trends if we can use the Single Trend in a smaller timeframe, and get more entries that way?
We thought this was an excellent question, but the answer is obvious to us.
Using a Single Trend on a smaller timeframe to solely getting more entries will reduce the security of the given trades. We designed the Algorithm Builders to take a trade-in an identified trend but reducing the timeframe too much will mostly increase your risk - and might lead to capital loss.
By the way, this is a universal rule valid also for a significant majority of indicators.

We're not saying that the Single Trend won't work on small timeframes because actually it really does. But, if you find out an excellent configuration for your Single Trend, and want to get more signals without increasing your risk. - then the Multiple Trends would be a very viable option.

Main signal versus Secondary signals
Main and secondary signals

For the main and secondary trends, the color green symbolizes any identify "BUY" trend. And the color red symbolizes any identified "SELL" trend.

The MAIN trend symbol is unique and symbolized by a triangle.

The SECONDARY (could also be called re-entries) trends are multiple, and symbolized by a diamond.
In the Algorithm Builder, they're identified with the Additional keyword.

Extremely important: The diamonds (or re-entries) are displayed, as long as a triangle (or main/primary signal) is displayed.
For a trend change (buy to sell or sell to buy), the system waits for ALL selected re-entries sub-indicators, to give a convergence/confluence in the opposite direction.
For example, let's assume a BUY/green convergence based on 3 indicators. One or Two of them going turning red, won't be enough for a trend change.
Nevertheless, if all of them turn red, then we'll see a red triangle - signaling the beginning of a new downtrend.

The user input fields

Access KEY

Expired Access Key

Here you'll need to insert the access key you received by email (within 2 business days after the date of order) This key has been generated for you according to your subscription package, and have a specific expiration date included in it.

If the key inserted is incorrect or expired, the indicator displays an orange label inviting you to subscribe again

Utilities

Display primary or secondary signals
Display primary and secondary sub indicators

It could be messy to display at the same time the primary, and secondary sub-signals. That's why we let you the option to select those you'd like to keep on your chart.
You can chose to display none of them by unchecking both checkboxes.

Algorithmic Supports and Resistances

We're giving below a few general rules that are valid for most of the trades.
- It usually reacts on them in the short-term when they're hit the first, and next few times
- The more a S/R is hit, the weaker it gets.
- They're all important, and should be considered as strong S/R telling the trader to be more "cautious" before getting into a trade...
Especially if a signal is given near one of them.

They're called Algorithmic Supports and Resistances because they're universal, and work with all assets classes (FOREX, INDEX, CRYPTO, STOCKS, ...).
That's why we offer them in all of our Algorithm Builders because they're levels used to :
- Gives a warning to the trader if he/she gets a signal too close from one of those S/R - This is the scenario where waiting for a pullback could be recommended to limit the risk.
- Defines Take Profit zones.



Algorithmic Support & Resistances

If you want to select/unselect specific supports/resistances, you'll need to :
1 - Go to the Style tab
2 - Select/Unselect the ones that make sense to YOU according to asset/timeframe on the chart
3 - The Algo S/R buffer (value in units/lots) is used for the Risk/Reward Panel
You might not want your TP zones to be defined exactly on those S/R, but to let yourself a little bit of margin.

We thought about this margin buffer because those S/R aren't always accurate levels - mostly because they're multi-timeframes zones (and otherwise trading would be too easy ^^).
It's up to you to decide how relevant this margin buffer is, and if it could add some benefits to your overall trading strategy.

Labels Lines

This option has been specially designed for mobile users. The TradingView native labels are very long, and take "too much place on the screen".
The number input moves the labels on your chart, the higher the number, the more to the right they'll be located.
You'll have now shorter labels so that your chart looks nicer on mobile devices.

Deactivate TradingView native labels
Label Lines

Indicators

Primary/Main Trend

Overlay

The Overlay gives a bullish signal if the price closes above the selected Moving Average. Otherwise, the returned signal is bearish

Supertrend
Supertrend

The Supertrend gives a bullish signal if the price closes above the red supertrend for the first time. Otherwise, the returned signal is bearish

MACD or MACD ZERO LAG
MACD or MACD ZERO LAG

You have the option to choose between a standard MACD or its alternative called MACD Zero Lag (known to be more creative/less lagging that the standard version). There is no right or wrong choice here, it all depends on your trading strategy. The MACD or MACD Zero Lag gives a bullish signal if the oscillator goes positive for the first time. Otherwise, the returned signal is bearish

Triple Moving Averages Cross

This is a nice addition compared to the Single Trends editions. They include a classical 2 moving averages cross.
We feel a 3 moving averages cross gives more security for the generated signal - reducing then your risk.
We're not recommending explicitly to use it - as always, there isn't a best or worst configuration by default.
Everything depends on the Algorithm Builder setup as a whole, and if it makes sense to you

Three moving averages cross

The Three Moving Averages cross bullish signal whenever the 3 selected moving averages cross for the first time. Otherwise, the returned signal is bearish

The crossing rules are the same as the ones published on our Three MM Cross TradingView script. We engineered those rules after years of analyzing the charts, and traded them enough to know it's a powerful indicator to have in your trading toolkit

If you want to use a classical TWO moving averages cross instead, you can set 2 moving averages (out of the three available) to be identicals. We give an example below.

Double moving averages cross mode
Price versus Ichimoku Cloud
Price vs Ichimoku

The Price versus Ichimoku gives a bullish signal whenever the candle close above the Ichimoku cloud. Otherwise, the returned signal is bearish

Trend Code

The Trend Code is part of our internal formula, and we cannot disclose what it is exactly. However, we'll surely share with you how to use it. As a rule of thumbs, the lower the input value is the lesser the number of trend codes is - the higher the input value, then the trend code will be more smoothed, and gives fewer sub-signals. (This is the classical behavior of any indicator anyway)

Pullback Value and Pullback Percentage
The Pullback will wait for all the other selected sub-indicators to converge, and only then will wait for a pullback on a moving average before giving the real entry signal

If you want a pullback without any buffer, then you'll have to apply buffer = 0. Sometimes, the broker might not take our orders if they're based on highs, and lows (due to network issue, liquidity, ...) and that's why we added this field allowing our users to get some margin of "error", and more flexibility

Pullback in value and in percentage

Pullback Value : the indicator expects a distance from the selected moving average in lots/units (i.e. Pullback Value SMA 20, and buffer 3 accepts the pullback whenever all the signals are converging, and the current price is 3 units/lots away from your SMA 20

Pullback Percentage : the indicator expects a distance from the selected moving average in percentage (i.e. Pullback Percentage SMA 20, and buffer 3 accepts the pullback whenever all the signals are converging, and the current price is 3 percent away from your SMA 20

Secondary/Additional Trend(s)

Reminder: The additional trend(s) always is in the same direction of the same MAIN trend.
We'll explain more in-depth below, and with a video showing how to use this fantastic feature - we made it as many of our clients wanted to find a way to get multiple entries in an identified trend.
We could see the Main trend as the beginning of a trend, and the Secondary trend(s) to be signal(s) confirming the strength of that trend.

Is it really needed?

There isn't a universal answer here. As always in trading, the answer is : "it depends".
Here are a few use cases :

1. The main use case why we made those Multiple Trends indicators : A trader got invalidated or stopped out on a trade, but wants a system to let hin/her jump back in with a minimum of security. (security depending on the configuration of the Algorithm Builder as a whole).
This is very frustrating to get in a trade, being stopped out, and finally see the trade going in the expected direction.
Even more frustrating to jump back in at the end of a trend, and get stopped out again - we all agree on this.

2. You want to add more positions on your main trade as your Algo Builder identified a solid trend - this is an excellent way to maximize your gains.
Once again, we don't/won't guarantee any performance result (not because we don't believe in our tools, but for legal reason), all depends on the time spent reading our documentation, and practice as explained on that Tutorial also.

Maximum number of re-entries in a secondary trend
Number of additional entires

The example on the screenshot should be self-explanatory enough hopefully. We might sound like a broken record again, but better to overcommunicate on that : there isn't a recommended number - all depends on your trading strategy as a whole.

The secondary sub-indicators identifier
Algorithm Builder - Additional Entries

They're identified with the keyword Additional, but they're the same indicators used for the primary trend.
Those are used to display the diamond symbols.
You might have noticed we removed a few for the secondary trend like the (MACD ZERO LAG, and ICHIMOKU) - we did so to simplify the tool.

Hard Exit (based on MACD)

The Algo Builder Multiple Trends only includes the hard exit signals based on MACD.
It gives the signal for any primary or secondary signal.
For more information about why we think the hard exits (also called "invalidation") are essentials, and most of the times could prevent disasters, please have a look at our opinion on this topic here : The Best Trading Indicator trading method

We're not licensed financial advisors. That's why we're only here sharing trading scripts based on our own trading method. Even if using a hard exit signal could be advisable depending on your own trading method, we will never give explicit recommendations. For some trading strategies, it might not make sense using one - it's a case by case decision

Trading hard exit/invalidation

Let's assume the simple configuration with a SMA 20/50 cross, and a Supertrend (5,5). The signal is bullish signal whenever the 2 selected indicators are converging. Otherwise, the returned signal is bearish

This vertical brown line appears because (in that specific scenario) we're in a BUY but we get a hard exit/invalidation signal based on that MACD. This allows to exit a losing trade sooner, and before it might hit your stop-loss

Alerts

We enabled the alerts on those convergence signals but we cannot activate them for you. You'll need to create for each asset, and each timeframe the alerts to capture the signals given by the Algorithm Builder.
To capture both MAIN buy/sell, and SECONDARY buy/sell alerts, you'll need to create then 4 alerts (more details just below).

The number of alerts you can set for your TradingView account depends on your TradingView subscription type. You can figure out how many alerts you can have activated simultaneously from that documentation : https://www.tradingview.com/gopro.

Main trend alerts
Tradingview Alerts Settings

The screenshot should be self-explanatory enough

You mandatory need to create 1 alert for the BUY event, and 1 alert for the SELL event

The Algorithm Builder allows to capture the alerts on those BUY green triangles, and SELL red triangles.

You'll have to create 1 alert per event (buy or sell) per asset (BTC, DOW, APPL, ...) per timeframe (m5, m15, ...).

For instance, if you add your Algorithm Builder to your chart. You have to create 2 alerts. A first one to capture the MAIN BUY event, a second one to capture the MAIN SELL event.

According to your TradingView subscription type, you might receive the alerts by email, and by SMS

More information to create, and manage custom alerts here

Secondary trend alerts

It's precisely the same principle here.
On the top of the MAIN alerts - you'll have to create 2 alerts to capture the additional BUY green diamonds, and the additional SELL red diamonds.

Secondary Alerts

Same here - the alerts on the diamonds have been enabled by our tool but you should activate, and set them up yourself.
Don't worry it's super easy to do :)

You'll have to create 1 alert per event (buy or sell) per asset (BTC, DOW, APPL, ...) per timeframe (m5, m15, ...).

For instance, if you add your Algorithm Builder to your chart. You have to create 2 alerts. A first one to capture the ADDITIONAL BUY event, a second one to capture the ADDITIONAL SELL event.
According to your TradingView subscription type, you might receive the alerts by email, and by SMS