The is a superior derivative of moving average crossovers and was developed by Gerald Appel in 1979 as a market timing tool. uses two exponential moving averages with different bar periods, which are then subtracted to form what Mr. Appel calls the Fast Line. A 9-period moving average of the fast line creates the slow line.
L1 Improved Indicator mainly improves histogram by customized an algorithm and add three levels of long entry alerts derived from ().
buy1 --> the 1st level of buy alert in green
buy2 --> the 2nd level of buy alert in lime
buy3 --> the 3rd level of buy alert in yellow
diff --> classic diff fast line in white
dea --> classic dea slow line in yellow
--> classic difference histogram,but I did not use it directly in the plot.
Pros and Cons
1. more clear sub level trend change with new histograms
2. three levels of buy alerts
1. need sophisticated knowledge of to use this well
2. this still requires a lot of experience to obtain reliable trading signals
I am a fan of . Even the most classic can have in-depth usage. I think is the king of indicators.
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.