EP Change Index is an oscillator-type indicator, which provides a simplified view of the price, clearly showing its trend.
The indicator shows a main line (Change Index) and a mean, which oscillate above and below a horizontal line (line 0).
Values above line 0 indicate an upward trend in the medium or long term, below line 0, a downward trend.
The space between the main line and line 0 is colored green or red, depending on whether the Change Index value rises or falls.
We also see how the space between the main line and the middle line is painted blue or brown, also depending on the value of Change Index.
When should I buy? I have marked the zones on the graph: when Change Index rises approaching line 0 or simply when it cuts it.
We can also consider the crosses of the Change Index with its average, especially when they occur below the 0 line. This is a less safe buy after a strong fall, in this case it is better to wait for the second or third rebound in the Change Index .
This indicator can be used to reinforce other techniques.
I personally like to complete the chart with a series of moving averages, in addition to taking into account trend lines, supports and resistances.
Look for more ideas related to this indicator to learn more.
Release Notes
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EP Change Index is made up of two averages, which oscillate above and below a central line, the 0 line. The main ascending line above the average indicates rising prices. The main descending line below the average reflects price decline or lateralization.
-Green color: Change Index main line growing and above 0. Changes to green are usually good entry points, especially in a bullish situation and when they occur when crossing the 0 line.
-Yellow color: Change Index main line growing below 0. In a bullish situation a large yellow spike can indicate a rapid price recovery. In the small incursions of the indicator below the 0 line, the yellow color shows us the return to the trend, so it may be a good time to join it. However, in a bearish situation we should always wait to take positions when the main line is very close to 0. We will avoid entering when the averages are still very far from 0, and we will always be attentive to bearish turns of the indicator. In a fall, we will find safer areas after observing increasingly higher Change Index peaks. Orange color: Change Index main line falling above 0. It does not always indicate a significant price drop, but we will be attentive to the next movement.
-Red color: Change Index main line falling below the average or 0 line. It usually indicates a drop in prices, but this is not always the case. In a large upward trend we will observe with some frequency that the price continues to rise or sideways, without actually falling.
Release Notes
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EP Change Index is made up of two averages, which oscillate above and below a central line, the 0 line. The main ascending line above the average indicates rising prices. The main descending line below the average reflects price decline or lateralization.
Meaning of colors:
-Green color: Change Index main line growing and above 0. Changes to green are usually good entry points, especially in a bullish situation and when they occur when crossing the 0 line.
-Yellow color: Change Index main line growing below 0. In a bullish situation a large yellow spike can indicate a rapid price recovery. In the small incursions of the indicator below the 0 line, the yellow color shows us the return to the trend, so it may be a good time to join it. However, in a bearish situation we should always wait to take positions when the main line is very close to 0. We will avoid entering when the averages are still very far from 0, and we will always be attentive to bearish turns of the indicator. In a fall, we will find safer areas after observing increasingly higher Change Index peaks. Orange color: Change Index main line falling above 0. It does not always indicate a significant price drop, but we will be attentive to the next movement.
-Red color: Change Index main line falling below the average or 0 line. It usually indicates a drop in prices, but this is not always the case. In a large upward trend we will observe with some frequency that the price continues to rise or sideways, without actually falling.
If you like this indicator, send me a request for a free 30-day trial.
changomalizia
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@EP-Trading, Hi, I would really like to try out this indicator. Thank You!
EP-Trading
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@changomalizia, Of course, I'm going to give you access to your 30-day trial now. I also include the rest of the indicators in the test. Check my profile posts to understand how they work. You can tell me any questions. Thanks for your interest !
Changes from version 3.1. - Updated to Pine Script 5. - Modified the lengths of the socks. - Changed the color scheme. - Various presets have been introduced for quick switching between them.
JFail
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Hola, realmente me gustaría probar este indicador. ¡Gracias!
EP-Trading
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@JFail, Hola, le he dado acceso a EP Change Index, y también a otros indicadores que también creo son interesantes: EP Zenith y EP Elephant. Para operar yo uso los tres conjuntamente. Mire en mi perfil, he publicado ideas relacionadas con ellos. Consúlteme cualquier duda, Gracias por su interés!
cgomezh
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Hi, I would like to try this indicator. Thank you.
EP-Trading
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@cgomezh, Hello, of course, you can try all our indicators for 30 days. Ask any questions about how it works. You can follow our profile, and also our YouTube channel to see ideas and videos about them. Thank you for your interest in our indicators!
david17xs
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Hello, I would like to use this indicator, could you please give me access? Thank you