Surge
This indicator takes oscillator divergences to the next level. It aims to find the start and end of trends within 1 or 2 bars. With traditional oscillators like stochastics, MACD, RSI, and so on, divergences may only appear at the end of trends, but with this oscillator, they also appear before the end of trends giving you an advanced warning signals. Furthermore it provides "trend continuation" signals which are not available with the other oscillators.
This oscillator introduces the term "back divergence".
To understand this, consider a 5-wave elliot wave on an uptrend. (Please google an Elliot wave images). Standard oscillators like the ones mentioned above may show a price-indicator divergence between the top of waves 3 and 5. This indicator also shows this and includes price-indicator divergences between waves 2 and 4, giving you a heads-up before trends change.
For trend continuation signals, consider the A-B-C wave on a correction. When other oscillators miss the divergences at C, this oscillator will show it.
The math behind this indicator uses physics formulas from Isaac Newton. Specifically the derivation of price "distance", "velocity" and "acceleration". A derivation of price "acceleration" is plotted, which is termed "Jerk" or "Surge". Please see en.wikipedia.org/wiki/Jerk_(physics).
Another way to think about how this oscillator works is this: Imagine yourself in your car at a stoplight. As soon as the light turns green, you press on the accelerator and you feel forward acceleration. Even though you intend to reach a destination sometime in the future, the first thing you actually feel is the acceleration of the car. This oscillator plots that acceleration, and therefore is considered a "leading" indicator.
Consider the start of the trend as sitting at the stoplight, and the end of a trend as the destination. This oscillator defines both points within 1 or 2 bars after the new trend starts. Combined with stochastics to help with signaling, this can be a valuable tool to gain insights into the market.
For more information, please see www.tradingview.com/u/jbrelin/
For best results, use only in high volume markets.
This oscillator introduces the term "back divergence".
To understand this, consider a 5-wave elliot wave on an uptrend. (Please google an Elliot wave images). Standard oscillators like the ones mentioned above may show a price-indicator divergence between the top of waves 3 and 5. This indicator also shows this and includes price-indicator divergences between waves 2 and 4, giving you a heads-up before trends change.
For trend continuation signals, consider the A-B-C wave on a correction. When other oscillators miss the divergences at C, this oscillator will show it.
The math behind this indicator uses physics formulas from Isaac Newton. Specifically the derivation of price "distance", "velocity" and "acceleration". A derivation of price "acceleration" is plotted, which is termed "Jerk" or "Surge". Please see en.wikipedia.org/wiki/Jerk_(physics).
Another way to think about how this oscillator works is this: Imagine yourself in your car at a stoplight. As soon as the light turns green, you press on the accelerator and you feel forward acceleration. Even though you intend to reach a destination sometime in the future, the first thing you actually feel is the acceleration of the car. This oscillator plots that acceleration, and therefore is considered a "leading" indicator.
Consider the start of the trend as sitting at the stoplight, and the end of a trend as the destination. This oscillator defines both points within 1 or 2 bars after the new trend starts. Combined with stochastics to help with signaling, this can be a valuable tool to gain insights into the market.
For more information, please see www.tradingview.com/u/jbrelin/
For best results, use only in high volume markets.
Release Notes:
Update to version 5.
Exclude the 3th derivation of distance, and allow the 2rd as the major use instead. Provides better signals in some cases.
Exclude the 3th derivation of distance, and allow the 2rd as the major use instead. Provides better signals in some cases.
Release Notes:
Simplify script. Extra options not necessary.
