This System was created from the Book "How I Tripled My Money In The
Market" by Ulf Jensen, Page 183. This is reverse type of strategies.
The strategy buys at market, if close price is higher than the previous close
during 2 days and the meaning of 9-days Slow Oscillator is lower than 50.
The strategy sells at market, if close price is lower than the previous close price
during 2 days and the meaning of 9-days Fast Oscillator is higher than 50.
Stock market moves in a highly chaotic way, but at a larger scale, the movements
follow a certain pattern that can be applied to shorter or longer periods of time
and we can use Chaos Bands Indicator to identify those patterns. Basically,
the Chaos Bands Indicator helps us to identify whether the stock market is
trending or not. When a market is trending, the bands will have a slope and if market
is not trending the bands will flatten out. As the slope of the bands decreases, it
signifies that the market is choppy, insecure and variable. As the graph becomes more
and more abrupt, be it going up or down, the significance is that the market becomes
trendy, or stable. Chaos Bands Indicator is used similarly to other bands-indicator
( for instance), offering trading opportunities when price moves above or
under the lines.
The FCB indicator looks back in time depending on the number of time periods trader selected
to plot the indicator. The upper line is made by plotting stock price highs and the
lower line is made by plotting stock price lows. Essentially, the Chaos Bands
show an overall panorama of the price movement, as they filter out the insignificant fluctuations
of the stock price.
- For purpose educate only
- This script to change bars colors.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.