docs: Add Money Line v8 indicator explanation to README

Added comprehensive section explaining:
- How the indicator works (simple terms)
- What creates the line (ATR, multiplier, HalfTrend)
- v8 improvements (flip threshold, entry buffer, stickier bands)
- Simple analogy (traffic light for trading)
- Version comparison (v6/v7/v8)

Makes it easy to explain the system to others
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mindesbunister
2025-11-18 11:44:48 +01:00
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@@ -75,6 +75,70 @@ Impact: +10% total P&L expected (better hit rates in all conditions)
**Why?** If Drift orders don't fill (low liquidity, network issues), Position Manager acts as backup. Both write to the same PostgreSQL database for complete trade history.
## 📈 The Money Line v8 Indicator
### How It Works (Simple Explanation)
The **Money Line** is a dynamic support/resistance indicator that adapts to market volatility. Think of it as a "safety zone" - price above = bullish, price below = bearish.
**The Core Concept:**
- **Green line** = Bulls in control, momentum up → Go LONG
- **Red line** = Bears in control, momentum down → Go SHORT
- **Line flip** = Power shift detected → Enter trade
### What Creates the Line
**1. ATR (Average True Range)**
- Measures how much the market moves on average
- Volatile markets → wider bands, calm markets → tighter bands
- Think: "How much wiggle room does price need?"
**2. The Multiplier**
- ATR × Multiplier = Distance from price to line
- v8 uses 3.8x for 5min charts (stickier than previous versions)
- Higher multiplier = line changes color less often
**3. HalfTrend Algorithm**
- Calculates upper band (resistance) and lower band (support)
- Price crosses above upper band → line turns GREEN (bullish)
- Price crosses below lower band → line turns RED (bearish)
- Line "sticks" to its color until price STRONGLY breaks the opposite band
### v8 Improvements (Anti-Whipsaw Protection)
**Flip Threshold (0.8%)**
- Price must move 0.8% beyond the line before it changes color
- Filters tiny bounces that don't mean anything
- Example: Line at $100 → price must hit $100.80 to flip bullish
**Entry Buffer (0.2 ATR)**
- Confirms the breakout is real, not just a wick
- Waits for price to close beyond line + buffer zone
- Prevents fake signals from sudden spikes
**Stickier Bands**
- Increased multipliers make the line "lazier" to flip
- Follows major trends, ignores minor corrections
### In Simple Terms
*"It's like a traffic light for trading:*
- *Green = Go long (buy)*
- *Red = Go short (sell)*
- *The line doesn't change until there's a REAL trend shift, filtering out fake moves.*
*It adapts to volatility automatically - in crazy markets it needs bigger moves to flip, in calm markets it's more sensitive. This keeps you trading WITH the flow, not against it."*
**Technical Name:** Modified HalfTrend Supertrend with ATR-based adaptive bands and flip threshold confirmation
**Street Name:** The Money Line 💰
### Indicator Versions
- **v6:** Filtered mode with ADX/volume/RSI confirmations (conservative)
- **v7:** Pure line flips (too noisy, deprecated)
- **v8:** Sticky trend with flip threshold + momentum confirmation (current)
All versions available in `workflows/trading/` directory.
## Quick Start (Docker)
### 1. Prerequisites