EMA/RMA clouds by AlpachinoRE-UPLOAD
The indicator is designed for faster trend determination and also provides hints about whether the trend is strong, weaker, or if a range is expected.
It consists of an exponential moving average (EMA) and a slower smoothed moving average (RMA). I chose these because EMA is the fastest and is respected by the market, while I discovered through practice that the market often respects RMA, and in some cases, even more than EMA. Their combination is necessary because I want to take advantage of the best qualities of both averages. Displaying averages based solely on the close values creates a simple line that the market might respect. However, this is often not the case. Market makers know that many traders still believe in the theory that closing above/below an EMA signals a valid new trend. They commonly apply this belief to EMA200. Traders think that if the market closes below EMA, it signals a downtrend. That’s not necessarily true. This misconception often traps inexperienced traders.
For this reason, my indicator does not include a separate line.
I use what are called envelopes. In other words, for both EMA and RMA, the calculation uses the high and low of the selected period, which can be chosen as an input in the indicator.
Why did I choose high and low?
To stabilize price fluctuations as much as possible, especially to allow enough space for the price to react to the moving average. This reaction occurs precisely between the high and low.
Modes:
EMA Cloud – This is the most common envelope in terms of averages. It shows the best reactions with a period of 50.
What should you observe: the alignment of the envelope or its slope.
Usage:
Breakouts through the entire envelope tend to be strong, which signals that the trend may change. However, what interests you most is that the first test of the envelope after a breakout is the most successful entry point for trades in the breakout direction.
In an uptrend, the first support will be the high of the envelope, and the second (let’s call it the "ultimate support") will be the low of the envelope.
If, during an uptrend, the market closes below the low, be cautious, as the trend may reverse.
If the envelope is broken, trade the retest of the envelope.
In general, if the price is above the envelope, focus on long trades; if it’s below the envelope, focus on short trades.
Double Cloud – Since we already know that highs and lows are more relevant for price respect, I utilized this in the double cloud. Here, I use calculations for EMA and RMA highs and EMA and RMA lows.
The core idea is that since the price often reacts more to RMA than EMA, I wanted to eliminate attempts by market makers to lure you into incorrect directions. By creating more space for the price to react to the highs or lows, I made the cloud fill the area between EMA and RMA highs. This serves as the last zone where the price can hold. If the price breaks above this high cloud during a return, this doesn’t happen randomly—you should pay attention, as it’s likely signaling a range or a trend change.
The same applies to the low cloud for EMA and RMA.
The advantage of the double cloud is that you can see two clouds that may move sideways. This can resemble two walls—and they really act as such.
Usage:
Let’s say we have a downtrend. The market seems to be experiencing a downtrend exhaustion. Here's the behavior you might observe:
The price returns to the EMA/RMA low; the first reaction may still have some strength, but each subsequent return will move higher and higher into the cloud with increasingly smaller rejections downward. This indicates the absorption of selling pressure by bullish pressure. Eventually, the price may close above the cloud, significantly disrupting the downtrend and potentially signaling a reversal.
A confirmation of the reversal is usually seen with a retest of the cloud and a bounce upward into an uptrend.
The second scenario, which you’ll often see, involves sharp and significant moves through both envelopes. This kind of move is the strongest signal of a trend change. However, do not jump into trades immediately—wait for the first retest, which is usually successful. Additional tests may not work, as the breakout might not signify a trend change but rather a range.
When the clouds are far apart, it signals a weak trend or that the market is in a range. You will see that this is generally true. When the clouds cross or overlap, their initial point of contact signals the start of a stronger trend. The steeper the slope, the stronger the trend.
Envelopes
Optimal Length BackTester [YinYangAlgorithms]This Indicator allows for a ‘Optimal Length’ to be inputted within the Settings as a Source. Unlike most Indicators and/or Strategies that rely on either Static Lengths or Internal calculations for the length, this Indicator relies on the Length being derived from an external Indicator in the form of a Source Input.
This may not sound like much, but this application may allows limitless implementations of such an idea. By allowing the input of a Length within a Source Setting you may have an ‘Optimal Length’ that adjusts automatically without the need for manual intervention. This may allow for Traditional and Non-Traditional Indicators and/or Strategies to allow modifications within their settings as well to accommodate the idea of this ‘Optimal Length’ model to create an Indicator and/or Strategy that adjusts its length based on the top performing Length within the current Market Conditions.
This specific Indicator aims to allow backtesting with an ‘Optimal Length’ inputted as a ‘Source’ within the Settings.
This ‘Optimal Length’ may be used to display and potentially optimize multiple different Traditional Indicators within this BackTester. The following Traditional Indicators are included and available to be backtested with an ‘Optimal Length’ inputted as a Source in the Settings:
Moving Average; expressed as either a: Simple Moving Average, Exponential Moving Average or Volume Weighted Moving Average
Bollinger Bands; expressed based on the Moving Average Type
Donchian Channels; expressed based on the Moving Average Type
Envelopes; expressed based on the Moving Average Type
Envelopes Adjusted; expressed based on the Moving Average Type
All of these Traditional Indicators likewise may be displayed with multiple ‘Optimal Lengths’. They have the ability for multiple different ‘Optimal Lengths’ to be inputted and displayed, such as:
Fast Optimal Length
Slow Optimal Length
Neutral Optimal Length
By allowing for the input of multiple different ‘Optimal Lengths’ we may express the ‘Optimal Movement’ of such an expressed Indicator based on different Time Frames and potentially also movement based on Fast, Slow and Neutral (Inclusive) Lengths.
This in general is a simple Indicator that simply allows for the input of multiple different varieties of ‘Optimal Lengths’ to be displayed in different ways using Tradition Indicators. However, the idea and model of accepting a Length as a Source is unique and may be adopted in many different forms and endless ideas.
Tutorial:
You may add an ‘Optimal Length’ within the Settings as a ‘Source’ as followed in the example above. This Indicator allows for the input of a:
Neutral ‘Optimal Length’
Fast ‘Optimal Length’
Slow ‘Optimal Length’
It is important to account for all three as they generally encompass different min/max length values and therefore result in varying ‘Optimal Length’s’.
For instance, say you’re calculating the ‘Optimal Length’ and you use:
Min: 1
Max: 400
This would therefore be scanning for 400 (inclusive) lengths.
As a general way of calculating you may assume the following for which lengths are being used within an ‘Optimal Length’ calculation:
Fast: 1 - 199
Slow: 200 - 400
Neutral: 1 - 400
This allows for the calculation of a Fast and Slow length within the predetermined lengths allotted. However, it likewise allows for a Neutral length which is inclusive to all lengths alloted and may be deemed the ‘Most Accurate’ for these reasons. However, just because the Neutral is inclusive to all lengths, doesn’t mean the Fast and Slow lengths are irrelevant. The Fast and Slow length inputs may be useful for seeing how specifically zoned lengths may fair, and likewise when they cross over and/or under the Neutral ‘Optimal Length’.
This Indicator features the ability to display multiple different types of Traditional Indicators within the ‘Display Type’.
We will go over all of the different ‘Display Types’ with examples on how using a Fast, Slow and Neutral length would impact it:
Simple Moving Average:
In this example above have the Fast, Slow and Neutral Optimal Length formatted as a Slow Moving Average. The first example is on the 15 minute Time Frame and the second is on the 1 Day Time Frame, demonstrating how the length changes based on the Time Frame and the effects it may have.
Here we can see that by inputting ‘Optimal Lengths’ as a Simple Moving Average we may see moving averages that change over time with their ‘Optimal Lengths’. These lengths may help identify Support and/or Resistance locations. By using an 'Optimal Length' rather than a static length, we may create a Moving Average which may be more accurate as it attempts to be adaptive to current Market Conditions.
Bollinger Bands:
Bollinger Bands are a way to see a Simple Moving Average (SMA) that then uses Standard Deviation to identify how much deviation has occurred. This Deviation is then Added and Subtracted from the SMA to create the Bollinger Bands which help Identify possible movement zones that are ‘within range’. This may mean that the price may face Support / Resistance when it reaches the Outer / Inner bounds of the Bollinger Bands. Likewise, it may mean the Price is ‘Overbought’ when outside and above or ‘Underbought’ when outside and below the Bollinger Bands.
By applying All 3 different types of Optimal Lengths towards a Traditional Bollinger Band calculation we may hope to see different ranges of Bollinger Bands and how different lookback lengths may imply possible movement ranges on both a Short Term, Long Term and Neutral perspective. By seeing these possible ranges you may have the ability to identify more levels of Support and Resistance over different lengths and Trading Styles.
Donchian Channels:
Above you’ll see two examples of Machine Learning: Optimal Length applied to Donchian Channels. These are displayed with both the 15 Minute Time Frame and the 1 Day Time Frame.
Donchian Channels are a way of seeing potential Support and Resistance within a given lookback length. They are a way of withholding the High’s and Low’s of a specific lookback length and looking for deviation within this length. By applying a Fast, Slow and Neutral Machine Learning: Optimal Length to these Donchian Channels way may hope to achieve a viable range of High’s and Low’s that one may use to Identify Support and Resistance locations for different ranges of Optimal Lengths and likewise potentially different Trading Strategies.
Envelopes / Envelopes Adjusted:
Envelopes are an interesting one in the sense that they both may be perceived as useful; however we deem that with the use of an ‘Optimal Length’ that the ‘Envelopes Adjusted’ may work best. We will start with examples of the Traditional Envelope then showcase the Adjusted version.
Envelopes:
As you may see, a Traditional form of Envelopes even produced with a Machine Learning: Optimal Length may not produce optimal results. Unfortunately this may occur with some Traditional Indicators and they may need some adjustments as you’ll notice with the ‘Envelopes Adjusted’ version. However, even without the adjustments, these Envelopes may be useful for seeing ‘Overbought’ and ‘Oversold’ locations within a Machine Learning: Optimal Length standpoint.
Envelopes Adjusted:
By adding an adjustment to these Envelopes, we may hope to better reflect our Optimal Length within it. This is caused by adding a ratio reflection towards the current length of the Optimal Length and the max Length used. This allows for the Fast and Neutral (and potentially Slow if Neutral is greater) to achieve a potentially more accurate result.
Envelopes, much like Bollinger Bands are a way of seeing potential movement zones along with potential Support and Resistance. However, unlike Bollinger Bands which are based on Standard Deviation, Envelopes are based on percentages +/- from the Simple Moving Average.
We will conclude our Tutorial here. Hopefully this has given you some insight into how useful adding a ‘Optimal Length’ within an external (secondary) Indicator as a Source within the Settings may be. Likewise, how useful it may be for automation sake in the sense that when the ‘Optimal Length’ changes, it doesn’t rely on an alert where you need to manually update it yourself; instead it will update Automatically and you may reap the benefits of such with little manual input needed (aside from the initial setup).
If you have any questions, comments, ideas or concerns please don't hesitate to contact us.
HAPPY TRADING!
LIZ-ATR-Based EMA EnvelopesThis envelope has an "auto band adjustment function" that reflects the most recent volatility in the band width by ATR.
This makes it easy to handle without the need to change the band width according to the volatility of the stocks to be displayed.
The time periods and colors of each time frame that can be displayed and the central band of the envelope are as follows.
Monthly: 2-year line (light blue)
Weekly: 3-month line (black)
Daily: 1 month line (blue)
4-hourly: 1-week line (green)
1 hour: 24 hour line (purple)
30-minute: 12-hour line (light purple)
15-minute: 4-hour line (orange)
5min:2hr (skin color)
1 minute: 30 minute line (gray-blue)
30 seconds: 10 minute line (blue-purple)
15-seconds: 7.5-minute line (sky blue)
10-seconds: 5-minute line (brown)
5-seconds: 2-minute line (emerald green)
Depending on where the price resides in the band, the following situations can be identified
・When inside the first band: Trendless
・Between the first and second band: Normal trend
・Between the 2nd and 3rd band: Strong trend
・When the third line is exceeded: Overheat condition
The first range is painted in gray and encourages not to follow the trend. In addition, the "up" sign will automatically light up when the price is above this gray zone, the "middle" sign when the price is in the middle of the gray zone, and the "down" sign when the price is below the gray zone.
このエンベロープは直近のボラティリティーをATRによってバンド幅に反映させる、「オートバンド調整機能」を搭載しています。
そのため、表示させる銘柄のボラティリティーに合わせてバンド幅を変更する必要がなく扱いやすいです。
表示できる各時間足と、エンベロープの中心バンドの期間・色は、以下の通りです。
月足:2年線(水色)
週足:3ヶ月線(黒)
日足:1ヶ月線(青)
4時間足:1週間線(緑)
1時間足:24時間線(紫)
30分足:12時間線(薄紫)
15分足:4時間線(オレンジ)
5分足:2時間線(肌色)
1分足:30分線(グレーブルー)
30秒足:10分線(青紫)
15秒足:7.5分線(スカイブルー)
10秒足:5分線(茶色)
5秒足:2分線(エメラルドグリーン)
価格がバンドのどこに存在するかによって以下の状況がわかります。
・1本目のバンド内側にある時:トレンドレス
・1本目から2本目の間にある時:ノーマルトレンド
・2本目から3本目の間にある時:強いトレンド
・3本目をオーバーしている時:過熱状態
1本目の範囲はグレーで塗られ、トレンドフォローしない事を促します。また、このグレーゾーンの上に価格がある時は「上」、中にある時は「中」、下にあるときは「下」の文字サインが自動点灯します。
Nadaraya-Watson: Envelope (Non-Repainting)Due to popular request, this is an envelope implementation of my non-repainting Nadaraya-Watson indicator using the Rational Quadratic Kernel. For more information on this implementation, please refer to the original indicator located here:
What is an Envelope?
In technical analysis, an "envelope" typically refers to a pair of upper and lower bounds that surrounds price action to help characterize extreme overbought and oversold conditions. Envelopes are often derived from a simple moving average (SMA) and are placed at a predefined distance above and below the SMA from which they were generated. However, envelopes do not necessarily need to be derived from a moving average; they can be derived from any estimator, including a kernel estimator such as Nadaraya-Watson.
How to use this indicator?
Overall, this indicator offers a high degree of flexibility, and the location of the envelope's bands can be adjusted by (1) tweaking the parameters for the Rational Quadratic Kernel and (2) adjusting the lookback window for the custom ATR calculation. In a trending market, it is often helpful to use the Nadaraya-Watson estimate line as a floating SR and/or reversal zone. In a ranging market, it is often more convenient to use the two Upper Bands and two Lower Bands as reversal zones.
How are the Upper and Lower bounds calculated?
In this indicator, the Rational Quadratic (RQ) Kernel estimates the price value at each bar in a user-defined lookback window. From this estimation, the upper and lower bounds of the envelope are calculated based on a custom ATR calculated from the kernel estimations for the high, low, and close series, respectively. These calculations are then scaled against a user-defined multiplier, which can be used to further customize the Upper and Lower bounds for a given chart.
How to use Kernel Estimations like this for other indicators?
Kernel Functions are highly underrated, and when calibrated correctly, they have the potential to provide more value than any mundane moving average. For those interested in using non-repainting Kernel Estimations for technical analysis, I have written a Kernel Functions library that makes it easy to access various well-known kernel functions quickly. The Rational Quadratic Kernel is used in this implementation, but one can conveniently swap out other kernels from the library by modifying only a single line of code. For more details and usage examples, please refer to the Kernel Functions library located here:
Quantitative Kernel DelimiterQuantitative Kernel Delimiter QKD - aka "Fire and ICE" - is a six-level multiple Kernel regression estimator with cross-timeframe semi-coordinated delimiters (bands) enabled by mathematical validation to our own Kernel regression code with historical Kernel formulas having custom variable bandwidths , mults , and window width – all achieving an advanced alerting system and directional price-action pointers for Novice, Intermediate and Advanced Traders within the TradingView Graphical User Interface.
In the course of our work, we have found that such six delimiters are ideal for generating signals of varying strengths.
99.9% of observations should be in our delimiters' range:
Kernel regression is a nonparametric smoothing method for data modeling.
Kernel regression of statistics was derived independently by Nadaraya and Watson in 1964 with a mathematical foundation given by Parzen’s earlier work on kernel density estimation.
If you are interested in reading more about the mathematical basis of this method from which our code is derived, you can follow these scholarly links:
Expert Trading Systems: Modeling Financial Markets with Kernel Regression
Estimation of the bandwidth parameter in Nadaraya-Watson
Adaptive optimal kernel density estimation for directional data
How kernel regression differs from the other Moving Averages?
In most MA's data points in the specified lookback window are weighted equally. In contrast, the Gaussian Kernel function used in this indicator assigns a higher weight to data points that are closer to the current point. This means that the indicator will react more quickly to changes in the market.
Regression method from which our code is derived is a widely known formula that is laid out in many sources, we used this source:
Kernel regression estimation
Kernel
During the regression counting process, a `kernel function` is used, which is traditionally chosen from a wide variety of symmetric functions.
In this indicator, we use the Gaussian density of statistics as the kernel function.
The Gaussian Kernel is one of the most commonly used Kernel functions and is used extensively in many Machine Learning algorithms due to its general applicability across a wide variety of datasets.
The kernel regression averages all the data contained within the range of the kernel function.
The effective range of the kernel function is defined by its window width .
Kernel Delimiters (Bands / Levels)
This indicator has 6 tailored price range* delimiters:
Cold / Fire - the furthest delimiters. In a range market when the price enters the cold/fire zones it is assumed that it has deviated strongly from the average and there is a high probability that it will immediately return to the average, or at least into the underlying zone, also in a trending market it signals a change in trend.
ALERT: the indicator performs best during relatively sideways price action within an established range. The trader must check higher timeframes during hits on the extreme Cold or Fire delimiter bands as a break in the lower, or even higher timeframe price range may result in a need to reset the regression calculation once price velocity calms down after a major move allowing the indicator to best function again. The reset will be done automatically by the indicator’s code. The indicator is not intended for use with unusually aggressive pricing behavior. Always beware of extreme market conditions. The indicator is intended as an ordinary range trading tool.
Gold / Green - we call it the middle ground / golden mean / happy medium zone. When the price comes out here but the momentum is not enough to get to the higher zone we consider it a good signal.
Pro - most often we receive signals in this area. We call it the professional zone because it is literally the zone for professional traders who know what they are dealing with.
*NOTE: the indicator is intended to be used as a range trading tool, and does not protect against total BREAKS from one Range to a new Range, wherein the bands reset for the trader.
Alerts / Labels
We have spent a lot of time implementing and testing signal labels* and alerts**.
Now you have access to an advanced alert system.
*NOTE: DUE TO the ongoing regression calculations performed by our code, the trader will note that a label may change color at a later point in time, or even soon after the hit on the quantitative delimiter band in question. This is a process that was reviewed and is favored to achieve visual clarity over historical accuracy for the trader. Real-time trading hits of price line to band, along with alerts generated, remain accurate. We look forward to receiving feedback on this issue from the end users. Additional revisions by our team on this matter are anticipated if a harmony between visual clarity and historical accuracy is not satisfied.
**NOTE: Smaller and especially micro timeframes will result in more repeated alerts given the tight proximity with price vis-à-vis the quantitative delimiter. Larger timeframes tend to eliminate any issue with repeated alerts aside from obvious re-contacting of the quantitative delimiter by the active price line.
You can turn off alerts you don't need in the indicator settings.
All alerts are set with one click.
Themes
Different people like different things, which is why we decided to make several visual design themes so you can choose what suits you.
Themes will continue to evolve over time.
Pro Theme:
Modern Theme:
How to remove colored text labels next to price scale to maximize screen space on mobile:
Go to General Chart Settings :
Click on “SCALES”
Un select “Indicators and financial name.”
Dynamic Mode
Projection of Indicator bands on history is subject to repainting due to its regressive calculation nature. Be cautious: old signals are drawn once at the first loading of the chart and by default (to speed up the start-up time of the indicator) correspond to the current regression levels. All labels remain in their places as the chart progresses. Also new, real-time labels appear on the chart, and do not disappear. In order to display the old signals on the chart as they were at the time of their appearance, uncheck the "History labels transition" in the indicator settings (it may increase the initial loading time of the chart but will give you an opportunity to check the alerts you received before and may also be useful for visual backtesting).
Because of the very nature of modeling financial markets (i.e., thousands of data records and perhaps hundreds of candidate predictors), the need for computational speed is paramount.
The use of kernel regression in data modeling for the types of problems associated with financial markets requires careful consideration of computational time.
Once we acknowledge that the order of the data is important, then the choice of the learning-data-set becomes crucial. The time dimension introduces another level of complexity to the analysis: how much importance do we attach to recent data records as opposed to earlier records? Is there a simple way to take this effect into consideration? Common sense leads us to the basic conclusion that if we are to predict a value of Y at a given time, we should only use learning data from an earlier time. But this procedure tends to be overly restrictive. This problem has a simple solution: All that one must do is to make the learning data set dynamic . In other words, once a record has been tested, it is then available for updating the learning data set prior to testing the next record. The analyst can allow the learning data set to grow, or, alternatively, for each record added, the earliest remaining record in the learning set can be discarded. These two alternatives have led us to the necessity of using moving window option and adding a disclaimer that dynamic mode is enabled.
This indicator will be updated frequently based on community feedback see the Author’s instructions below to get instant access
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Liability Disclaimer
Never fully rely on one indicator as you trade. Successful trading may require an orchestral mindset and harmonіc blend of trading tools, know-how, and devices. VIP Trader . com is not responsible for any damages or losses incurred by use or misused of this indicator. Neither this description above, nor the indicator, is intended to be used as financial advisory tool, nor to be used without proper education or training in the field of trading.
ENVELOPE RSI - Buy Sell SignalsThis indicator is mainly based on Overbought and Oversold . Indicator for short-term trading. This way you can get small but acceptable signals.
The main basis of the indicator is as follows:
To buy, the indicator is waiting for the instrument to be oversold from the RSI point of view. Then, if the chart crosses the bottom line of the Envelope indicator from the bottom to the top, a buy signal is issued.
For sell, the indicator waits for the instrument to be overbought from the RSI perspective. Then, if the chart crosses the top line of the Envelope indicator from top to bottom, a sell signal is issued.
The general basis is the consonance of the price and the RSI indicator .
The best settings I came up with myself:
Time frame: 15 minutes
Overbought: 80
Oversell: 25
RSI Length: 8
It can be done on different instruments. But always set your profit and loss limits.
(Profit to loss ratio in this indicator can be 1: 1.)
Disclaimer : This information and trading indicators and tools provided neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities. You shall be fully responsible for any investment decision you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.
I am not liable for any profit, financial improvement, losses or damages, monetary or other that may result from the application of information contained within this indicator. Individual traders must use their own due diligence in analyzing featured trading indicators, other trading tools, webinars and other educational materials to determine if they represent suitable and useable features and capabilities for the individual trader.
multiple_ma_envelope
Description:
Moving Average is a well-known though simple technical analysis tool, that can be applied in most trading journeys. By adding an envelope (a certain amount above and below the moving averages, cited from Investopedia), the indicator aligned its aim to identify the reversal area i.e. when the price reaches the envelopes, the price tends to have a reverse. In this indicator, the improvement is by adding multiple envelopes at once, thus can identify the further phase of the reverse area when the price apparently continues current direction.
Upper Band = MA * (1 + %envelope)
Lower Band = MA * (1 - %envelope)
Notes:
1). In this indicator, the default value of the moving average utilized is set to 10, 20, 50, 100 respectively
2). The band initial value is set to 0.2, and increases by 0.2 for each increasing MA Length
Feature:
1). Multiple Moving Average Envelope
2). Information Table as displayed Rolling Deviation, Rolling Maximum Drawdown, and Value-at-Risk
LIZ AUTO PILOT+W-ENVELOPEThe envelope indicating the deviation from the moving avarage line should be changed depending on the investment target and time scale.
This indicator displays the appropriate envelope line depending on the brand and time you want to analyze, because it presets those settings.
You can also adjust envelope settings according to your market environment, so you can always display lines that fit your current situation.
This indicator includes not only the envelope, but also the signature tool.
The sign tool lights up according to the relationship with the moving average line.There are three types of signs: short-term sign, medium-term sign, and long-term sign, indicating a clear trend when all are aligned in the same direction.
In addition, you can create a trading strategy by taking advantage of the tendency to align the directions in the order of short, medium, and long.
移動平均線からの乖離を示すエンベロープは、銘柄や時間足に応じて設定を変える必要があります。
このインジケーターはそれらの設定をプリセットしている理由で、あなたが分析したい銘柄と時間足に応じて、適切なエンベロープラインを表示してくれます。
またマーケット環境に応じてエンベロープの設定をアジャストできますので、常に現在の状況にフィットしたラインを表示する事が可能です。
このインジケーターには、エンベロープだけでなく、サインツールも搭載されています。
サインツールは移動平均線との関係に応じて点灯します。サインの種類は短期サイン、中期サイン、長期サインの3つで、全てが同じ方向に揃ったらトレンドがはっきり出ている事を表します。
また、短期、中期、長期の順に方向が揃って行く性質を利用して、あなたはトレード戦略を立てる事ができます。
G-Channels - Efficient Calculation Of Upper/Lower ExtremitiesIntroduction
Channels indicators are widely used in technical analysis, they provide lot of information. In general, technical indicators giving upper/lower extremities are calculated by adding/subtracting a volatility component to a central tendency estimator. This is the case with Bollinger bands, using the rolling standard deviation as volatility estimator and the simple moving average as central tendency estimator, or the Keltner channels using the exponential moving average and the average true range.
Lots and lots and lots (i can go on) of those indicators have been made, they only really need a central tendency estimator, which can be obtained from pretty much any filter, however i find interesting to focus on the efficiency of those indicators, therefore i propose a super efficient channel indicator using recursion. The average resulting from the upper/lower extremity of the indicator provide a new efficient filter similar to the average highest/lowest.
The calculation - How Does It Works
Efficiency is often associated to recursion, this would allow us to use past output values as input, so how does the indicator is calculated? Lets look at the upper band calculation :
a := max(src,nz(a(1))) - nz(a(1) - b(1))/length
src is the closing price, a is upper extremity, b is the lower one. Here we only need 3 values, the previous values of a and b and the closing price. Basically a := max(src,nz(a(1))) mean :
if the closing price is greater than the precedent value of a then output the closing price, else output the precedent value of a
therefore a will never be inferior to its precedent value, this is useful for getting the maximum price value in our dataset however its not useful to make an upper band, therefore we subtract this to a correction factor defined as the difference between a and b , this force the upper band to have lower values thus acting like a band without loosing its "upper" property, a similar process is done with the lower band.
Of course we could only use 2 values for making the indicator, thus ending with :
a := max(src,nz(a(1))) - nz(abs(close - a(1))/length
In fact this implementation is the same as the one proposed in my paper "Recursive Bands - A New Indicator For Technical Analysis", its also what i used for making the indicator "Adaptive Trailing Stop", this would be more efficient but i used the difference between the upper and lower extremities for a reason.
The Central tendency Estimator
This is the reason why i didn't implemented a more efficient version. Basically this central tendency estimator is just the average between the upper and lower extremities, it behave like the average of the highest/lowest over length period, its central plot in the Donchian channel indicator. Below is a comparison of both with length = 100 :
But why is our average so "boxy"? The extremities are not boxy, so why the average is sometimes equal to its previous value? Explain!
Its super easy to understand, imagine two lines, if their absolute change is the same and they follow an opposite direction, then their average is constant.
the average of the green and red line is the orange line. If both lines follow the same direction then their average will also follow this direction.
When both extremities follow the same direction, the average will also do the same, when both follow an opposite direction then the average will be equal to its precedent value, this is also due to the fact that both extremities are based on the same correction factor (a-b) , else the average wouldn't act that way, now you understand why i made this choice.
Conclusion
I proposed an efficient implementation of a channel indicator that provide an interesting central tendency estimator. This simple implementation would allow for tons of interesting concepts, some of my indicators use a similar approach and allow for great outputs, you'll see them soon enough. I hope this indicator find its use in the community, remember to ask before using this indicator in a script you want to publish.
Thanks for reading !
If you want to discuss about anime stuff send me a pm but don't do it in the commend section.
Periodic ChannelThis indicator try to create a channel by summing a re-scaled and readapted sinusoidal wave form to the price mean.
The length parameter control the speed of the sinusoidal wave form, this parameter is not converted to a sine wave period for allowing a better estimation, higher length's work better but feel free to try shorter periods.
The invert parameter invert the sinusoidal wave.
Each bands represent possible return points, the higher the band the higher the probability.
Inverted sin wave exemple
The performance of the indicator is subjective to the main estimation (blue line), select the parameter that best fit the blue line to the price.
Best ragards
Moving Average Envelopes Moving Average Envelopes are percentage-based envelopes set above and
below a moving average. The moving average, which forms the base for
this indicator, can be a simple or exponential moving average. Each
envelope is then set the same percentage above or below the moving average.
This creates parallel bands that follow price action. With a moving average
as the base, Moving Average Envelopes can be used as a trend following indicator.
However, this indicator is not limited to just trend following. The envelopes
can also be used to identify overbought and oversold levels when the trend is
relatively flat.
WARNING:
- This script to change bars colors.
Moving Average Envelopes Moving Average Envelopes are percentage-based envelopes set above and
below a moving average. The moving average, which forms the base for
this indicator, can be a simple or exponential moving average. Each
envelope is then set the same percentage above or below the moving average.
This creates parallel bands that follow price action. With a moving average
as the base, Moving Average Envelopes can be used as a trend following indicator.
However, this indicator is not limited to just trend following. The envelopes
can also be used to identify overbought and oversold levels when the trend is
relatively flat.
