Lucky Strike Indicator

Indicator Components

Chaikin Money Flow (CMF):

• The CMF is a volume-weighted average based accumulation and distribution over a specified period.
• It helps to find out the market of buying pressure and selling pressure.
• A positive CMF value indicates buying pressure or that the security is under accumulation in the market, while a negative CMF value implies selling pressure or that the security is under distribution.

Relative Strength Index (RSI):

• The RSI is a momentum oscillator, which measures both the speed and change of price movements.
• It oscillates between 0 to 100 and is often used to identify overbought or oversold conditions.
• Levels above 70 are considered as overbought while levels below 30 are considered oversold.

Martingale Signal:

• This component was based on the Martingale strategy which is increasing bet size after lost bets.
• This indicator creates a “super buy” or “super sell” signal after two false signals in a row.
  

How the Indicator Works, Parameters

Buy Signal

• Triggered when the CMF is positive (buy pressure) and RSI is less than 30 (oversold condition).
• May indicate possible reversal or strengthening of an upwards trend.

Sell Signal:

• When CMF is in negative (indicating selling pressure) and RSI is above 70 (in overbought condition).
• May indicate possible reversal or strengthening of a downwards trend.

Martingale Signal Emphasis, Super Buy/Super Sell signal:

• If two consecutive signals either bullish or bearish fail (the price moves in contrary direction), then more emphasis is placed on the following signal.
• This is based on the fact that once more trial and error movements have occurred, the market may be ripe for a stronger move in the indicated direction consistent with a martingale betting strategy.

//@version=5

indicator("CMF, RSI, and Martingale Success/Failure Indicator", shorttitle="Lucky Strike", overlay=true)



// Inputs

cmfLength = input.int(20, title="CMF Length")

rsiLength = input.int(14, title="RSI Length")

rsiOverbought = input.int(70, title="RSI Overbought Level")

rsiOversold = input.int(30, title="RSI Oversold Level")

cooldownPeriod = input.int(5, title="Cooldown Period")



// CMF calculation

cmfValue() =>

    prRange = high - low

    moneyFlowMultiplier = prRange != 0 ? ((close - low) - (high - close)) / prRange : 0

    moneyFlowVolume = moneyFlowMultiplier * volume

    na(moneyFlowMultiplier) ? na : moneyFlowVolume



sumVol = ta.sma(volume, cmfLength)

sumMfv = ta.sma(cmfValue(), cmfLength)

cmf = sumMfv / sumVol



// RSI calculation

rsi = ta.rsi(close, rsiLength)



// Signal logic with cooldown

var int lastBullishSignalBar = na

var int lastBearishSignalBar = na

var int failureBullishCount = 0

var int failureBearishCount = 0



bullishSignal = cmf > 0 and rsi < rsiOversold and (na(lastBullishSignalBar) or bar_index - lastBullishSignalBar > cooldownPeriod)

bearishSignal = cmf < 0 and rsi > rsiOverbought and (na(lastBearishSignalBar) or bar_index - lastBearishSignalBar > cooldownPeriod)



if bullishSignal

    lastBullishSignalBar := bar_index

if bearishSignal

    lastBearishSignalBar := bar_index



// Success/Failure logic

isSuccess(lastSignalBar, isBullish) =>

    if bar_index - lastSignalBar == 3

        if isBullish

            close > close[3]

        else

            close < close[3]

    else

        na



successOrFailureBullish = isSuccess(lastBullishSignalBar, true)

failureBullish = not successOrFailureBullish and bar_index - lastBullishSignalBar == 3

failureBearish = not isSuccess(lastBearishSignalBar, false) and bar_index - lastBearishSignalBar == 3



if failureBullish

    failureBullishCount := failureBullishCount + 1

if successOrFailureBullish

    failureBullishCount := 0 // Reset count on successful bullish signal

if failureBearish

    failureBearishCount := failureBearishCount + 1

if isSuccess(lastBearishSignalBar, false)

    failureBearishCount := 0 // Reset count on successful bearish signal



// Super Signal Logic

superBullishSignal = failureBullishCount >= 2 and bullishSignal

superBearishSignal = failureBearishCount >= 2 and bearishSignal



// Plotting

plotshape(series=bullishSignal and not superBullishSignal, title="Bullish Signal", location=location.belowbar, color=color.rgb(93, 243, 33), style=shape.triangleup, text="B", textcolor=color.green)

plotshape(series=bearishSignal and not superBearishSignal, title="Bearish Signal", location=location.abovebar, color=color.rgb(226, 4, 4), style=shape.triangledown, text="S", textcolor=color.rgb(220, 5, 1))

plotshape(series=superBullishSignal, title="Super Bullish Signal", location=location.belowbar, color=color.rgb(78, 172, 81), style=shape.labelup, text="SB")

plotshape(series=superBearishSignal, title="Super Bearish Signal", location=location.abovebar, color=color.rgb(250, 26, 26), style=shape.labeldown, text="SS")

plotshape(series=successOrFailureBullish, title="Success Bullish", location=location.abovebar, color=color.blue, style=shape.circle)

plotshape(series=failureBullish, title="Failure Bullish", location=location.belowbar, color=color.red, style=shape.xcross)

plotshape(series=isSuccess(lastBearishSignalBar, false), title="Success Bearish", location=location.belowbar, color=color.green, style=shape.circle)

plotshape(series=failureBearish, title="Failure Bearish", location=location.abovebar, color=color.orange, style=shape.xcross)