Dow Factor Relative Strength Index
This script was written to create a new, rapid relative strength index inspired by the Dow Theory.
More info about Dow Theory : www.investopedia.com...erms/d/dowtheory.asp
According to the Dow Theory, volume should confirm market trends.
The correlation coefficient between prices and volume is negative in weakening trends and negative trends , positive in strengthening or positive trends.a factor was formed based on the correlation coefficient between volume and prices.
This factor was added to the relative strength index.
Period 5 is selected because the volume is very volatile and can be slow.
You can use the period you want, but I recommend the period as a minimum of 5.
It is suitable for all instruments and timeframes and thanks to its design, it provides control over gradual buying and selling points.
I haven't fully tested it, it's open to updates. For now, just use it to create ideas.
If I find it necessary,
I'll update after the tests.
If you have suggestions on these issues,
Leave your comments in the comment window.
This code is open source under the MIT license. If you have any improvements or corrections to suggest, please send me a pull request via the github repository github.com/user-Noldo
Stay tuned , best regards.
More info about Dow Theory : www.investopedia.com...erms/d/dowtheory.asp
According to the Dow Theory, volume should confirm market trends.
The correlation coefficient between prices and volume is negative in weakening trends and negative trends , positive in strengthening or positive trends.a factor was formed based on the correlation coefficient between volume and prices.
This factor was added to the relative strength index.
Period 5 is selected because the volume is very volatile and can be slow.
You can use the period you want, but I recommend the period as a minimum of 5.
It is suitable for all instruments and timeframes and thanks to its design, it provides control over gradual buying and selling points.
I haven't fully tested it, it's open to updates. For now, just use it to create ideas.
If I find it necessary,
I'll update after the tests.
If you have suggestions on these issues,
Leave your comments in the comment window.
This code is open source under the MIT license. If you have any improvements or corrections to suggest, please send me a pull request via the github repository github.com/user-Noldo
Stay tuned , best regards.
Release Notes:
UPDATE :
- Probability Cluster Odds sharing error solved with Dependent Variable Odd Generator codes.
- Alerts added.
- Switchable barcolor option added .
- Period codes updated. (14 , you can use with all periods minval = 2 )
Note : Dow_Factor_RSI and Dow_Factor_MFI strategy version coming soon !
Best regards.
- Probability Cluster Odds sharing error solved with Dependent Variable Odd Generator codes.
- Alerts added.
- Switchable barcolor option added .
- Period codes updated. (14 , you can use with all periods minval = 2 )
Note : Dow_Factor_RSI and Dow_Factor_MFI strategy version coming soon !
Best regards.
Release Notes:
Update : Dow Factor RSI v2.0
The index factor in the Dow theory was taken into account .
It now takes into account the effect of volume and index - independent variable, the price(source-close) - dependent variable.
Before starting the analysis, select the relevant market from the menu, the system will set the appropriate index itself.
Factor loads were adjusted.Design changed.
The index factor in the Dow theory was taken into account .
It now takes into account the effect of volume and index - independent variable, the price(source-close) - dependent variable.
Before starting the analysis, select the relevant market from the menu, the system will set the appropriate index itself.
Factor loads were adjusted.Design changed.