Bull/Bear Market For ThinkOrSwim

FOTM_8888

Active member
- A simple risk on or risk off indicator based on CBOE's Implied Correlation and VIX to highlight and indicate Bull / Bear Markets. To be used with the S&P500 index as that's the source from where the CBOE calculates and measures implied volatility & implied correlation. Can also be used with the other indices such as: Dow Jones, S&P 500, Nasdaq, & Nasdaq100, & Index ETF's such as DIA, SPY, QQQ, etc.

- Know the active regime, see the larger picture using the Daily or Weekly view, and visualize the current "Risk On (Bull) or Risk Off (Bear)" environment.


Description:

  • Risk On and Risk Off simplified & visualized. Know if we are in a RISK ON or RISK OFF environment (Bull or Bear Market). (Absolute bottoms and tops will occur BEFORE a Risk On (Bull Market) or Risk Off (Bear Market) environment is confirmed!) This indicator is not meant to bottom tick or uptick market price action, but to show the active regime.
  • Green: Bull Market, Risk On, low volatility, and low risk.
  • Red: Bear Market, Risk Off, high volatility, and higher risk.


Buy & Sell Indicators (DAILY time frame)

- Nothing is 100% guaranteed! Can be used for short to medium term trades at the users discretion in BEAR MARKETS!!

- These signals are meant to be used during a RISK OFF / BEAR MARKET environment that tends to be accompanied with high volatility. A Risk on / Bull Market environment tends to have low volatility and endless rallies, so the signals will differ and in most instances not apply for Bull market / Risk on regime.

- The SELL signal will more often than not signal that a pullback is near in a BULL market and that a BMR-Bear Market Rally is almost over in a BEAR market.

- The BUY signal will have far more accuracy in a BEAR market-high volatility environment and can Identify short-term and major bottoms.

Always use proper sizing and risk management!

hello community, i hope someone here can help me with this great indicator. thank you in advance.

https://www.tradingview.com/v/gCBJvhRT/
 
Last edited by a moderator:
hello community, i hope someone here can help me with this great indicator. thank you in advance.

https://www.tradingview.com/v/gCBJvhRT/

// © SheepTrades™
//@version=5
indicator("Bull/Bear Market", overlay=true)
//INPUT PARAMETERS
IC = request.security("COR3M", timeframe.period, close)
vix = request.security("CBOE:VIX", timeframe.period, close)
//RISK ON/OFF INPUTS
RiskOFF = (IC > 37) and (IC[1] > 37) and (IC[2] > 37) and (vix > 22) //BearM = (IC > 40 and IC < 50 and vix < 24)
RiskON = (IC < 40) and (vix < 24) //BullM = (IC > 31 and IC < 39 and vix < 18)
//BUY/SELL INPUTS || **(BUY & SELL TO BE USED IN A RISK OFF ENVIRONMENT ONLY WITH PROPER RISK MGMT)
Buy = (IC > 50) and (vix > 32 and vix < 40)
Sell = (IC > 40 and IC < 43) and (IC[1] > 40 and IC[1] < 43) and (IC[2] > 40 and IC[2] < 43) and (IC[20] > 40) and (vix < 24)
Sell2 = (IC < 30 and vix > 20)
//PLOT BUY/SELL INPUTS
plotshape(Buy, title = "ON", text = '', style = shape.triangleup, location = location.belowbar, color= color.rgb(44, 162, 252), textcolor = color.rgb(44, 162, 252), size = size.tiny)
plotshape(Sell, title = "OFF", text = '', style = shape.triangledown, location = location.abovebar, color= color.rgb(248, 32, 255, 27), textcolor = color.rgb(248, 32, 255), size = size.tiny)
plotshape(Sell2, title = "OFF", text = '', style = shape.triangledown, location = location.abovebar, color= color.rgb(255, 32, 32), textcolor = color.rgb(255, 32, 114), size = size.tiny)
//BULL/BEAR MARKET REGIME BAR COLORS
barcolor(RiskON ? color.rgb(0, 255, 34) : na)
barcolor(RiskOFF ? color.rgb(255, 55, 55) : na)
//ALERTS
alertcondition(Buy, "Bull/Long", "Bull/Long")
alertcondition(Sell, "Bear/Short", "Bear Short")
alertcondition(Sell2, "Bear/Short", "Bear Short")
// © SheepTrades™
check below

CSS:
#// © SheepTrades™
#indicator("Bull/Bear Market", overlay=true)
# Converted by Sam4Cok@Samer800 - 07/2023
#//INPUT PARAMETERS
input colorBars = yes;

def na = Double.NaN;
def IC = close(symbol = "COR3M");
def vix = close(symbol = "vix");

#//RISK ON/OFF INPUTS
def RiskOFF = (IC > 37) and (IC[1] > 37) and (IC[2] > 37) and (vix > 22);
def RiskON = (IC < 40) and (vix < 24);

#/BUY/SELL INPUTS || **(BUY & SELL TO BE USED IN A RISK OFF ENVIRONMENT ONLY WITH PROPER RISK MGMT)
def Buy = (IC > 50) and (vix > 32 and  vix < 40);
def Sell = (IC > 40 and IC < 43) and (IC[1] > 40 and IC[1] < 43) and (IC[2] > 40 and IC[2] < 43) and (IC[20] > 40) and (vix < 24);
def Sell2 = (IC < 30 and vix > 20);

#//PLOT BUY/SELL INPUTS
plot BuyShape = if Buy then low else na;
plot SellShape = if Sell then high else na;
plot Sell2Shape = if Sell2 then high else na;
#//BULL/BEAR MARKET REGIME BAR COLORS
BuyShape.SetLineWeight(2);
SellShape.SetLineWeight(2);
Sell2Shape.SetLineWeight(2);
BuyShape.SetPaintingStrategy(PaintingStrategy.BOOLEAN_WEDGE_DOWN);
SellShape.SetPaintingStrategy(PaintingStrategy.BOOLEAN_WEDGE_UP);
Sell2Shape.SetPaintingStrategy(PaintingStrategy.BOOLEAN_WEDGE_UP);

BuyShape.SetDefaultColor(Color.CYAN);
SellShape.SetDefaultColor(Color.MAGENTA);
Sell2Shape.SetDefaultColor(Color.RED);

AssignPriceColor(
if !colorBars then Color.CURRENT else
if RiskON  then CreateColor(0, 255, 34) else
if RiskOFF then CreateColor(255, 55, 55) else color.current);

#---- END of CODE
 
Last edited by a moderator:
mod note:
If you are having difficulty using this indicator. Make sure to read the instructions in post#1

Still having problems?
Here is a chart link with the indicator being used correctly:
shared link: http://tos.mx/rWgD5rt Click here for --> Easiest way to load shared links
p29dfzd.png



@Stockleed @danB
 
Last edited:
Hi @FOTM_8888 have you trade using this indicator? Does it repaint? THank you

This is a simple daily script that uses CBOE's Implied Correlation and VIX to measure the sentiment of whatever index you run it against.

There is nothing in the code which would indicate any repainting.
If you have questions about any indicator,
a more detailed conversation can be had, when you provide a link to your chart with an annotation of the repainting-type behavior that you believe that it is displaying.

FYI: the repainting indicators on the forum will have a repainting prefix
 

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