Here is my big update of previously posted KR_Trender_v3 for ToS (aka, the Rainbow_Trender). My goal is to put together a trend detection indicator (based on multi-EMAs - the most basic and enduring concept), that makes it simpler to visualize good trends to ride, and more reliable to take positions, "add to position" in case of possible continuation, and exit if trend is found to be slowing down.
pls feel free to try with different instruments, timeframes, and provide feedback. (good & bad all welcome)...
So what represnts an ideal trend, when is a "Full Trend Alignment" detected?
this is based on the calculation of an average "score" of price relative to 3 EMA's of different lengths, and of these EMA's each to the next longer one. to explain in chart terms: a full up trend is detected when the price (P, i use HLC3 by default) moves and stays above EMA10, AND the EMA10 crosses above EMA20 AND EMA20 crosses above EMA40. otherway around for an established down trend. now I don't have to plot all these EMAs on my price charts . i can also add more weight to score of price action relative to fast EMA for reduced lag of signal
Note: the EMAs are hardcoded in the study. i set only one in the study settings, and then it takes half length of it as the faster EMA, and double length as the slower length .. i thought of making all 3 lengths adjustable from study settings, but preferred to keep this part simple. for bigger timeframe trend, i can set to 100, knowing it will take 50, 100 and 200 EMAs into the calc
Key changes for v4:
Simplify visulaization: removed vertical lines (found them nice but confusing), replaced with Chart Labels.
Better position decision making:
Added visual clue when a full trend alignment is detected (small green/red squares)
Chart Labels reflecting:
Trend Status Up, Down, or Retracing (Trend is slowing down or possibly reversing)
Strength of price move: Weak, Medium, and Strong
Position Recommendatoin: Long, Short, Break (this is where things get interesting. The position recommendation is made more strict. KR_Trender will only give a go "Long" or "Short" if a full trend alignment is detected (the Green/Red small squares) AND the move is sustained or getting stronger (in either directions up or down). otherwise, the recommendation is a "Break !" which means i should close the position, or add to it if other PA analysis tells me there's a chance of trend continuation.
Other changes:
exposed settings for desired Trend Level. i would keep it between 30 & 40, but you can try different values. also we still have an optional weight for score of fast price action relative to the 3 EMA's
Please do not share outside of BMT.. feel free to send me any feedback if you find this helpful in capturing trends (or not, or if you think i should simplify or add something i missed)
Changelog
Changed name to vvHideTitleBarSingleChart.
14 Sept 2012
Fixed issue where reloading charts or reconnecting applied the original style
Added hotkey Alt+B to switch between Standard and user selected style
It colors the region between two T3 moving averages. They are not Fulks-Matulich moving averages. I think it makes more sense to say that they are T3 moving averages calculated by a method developed by Fulks and Matulich.
I saw possibilities for improvement so took the liberty of revising it. This version will have a drastically lower usage of CPU cycles than the version that I found in the pot luck thread.
quick update to V3b.. still experimental and awaiting tester's feedback
1. Fix Typo (HL3 to HLC3), the calculation was correctly using HLC3.
2. trender will be yellow in the "no-trend" zone. Cyan when positive trend detected, and Magenta when negative trend is detected. you can still trade the no-trend zone, beside being more risky and unconfirmed, profit won't be as high as within a confirmed trend.
3. added an optional "weight factor" for the fast price action. this serves to magnify the short-term move vs the longer term trend (can be set to equal weight =1 in the study options)
my kids call this "the Rainbow" - so it's aka Rainbow Trender ..
all the best,
RedK
There seems to be a problem here: I uploaded the code as mahGradientColorBars2 but it is posting it without the 2 so I am not sure why it would do that. Easiest thing to do is just edit aligator's code.
I really like this indicator so hopefully aligator doesn't mind my version. I just like having my upcolors going green and downcolors colors going red. So if you are like me, then all you have to do is open the code and change 3 things in 2 lines;
Zondor was kind enough to go over my code for the SharkTrend and cleaned it up for me. I am not a programmer so I can assure you that this version is better than mine.
There is nothing really new in the coding here as all I did was create an indicator from the ZSharkTrendStoch that paints the background of price based on the ZSharktrendStoch being under 10 or greater than 90. I am more of a visual trader so if I can modify things into arrows, lines on price or whatever makes things easier for me to see, then that is what I do.
This is my modified version of the default VolumeAvg study in ThinkOrSwim.
the way my simple mind interprets volume move, i expect to see the volume bar Red for "down-days" (closing below the Open) and Green for "up-days" (Closing higher than Open).
Default logic in ToS's VolumeAvg study is different where volume bar color is based on trend, so compares today's close to yesterday's - or prior period's - close. Green of closes higher, red if closes below.
this quick customization enables me to switch between the 2 logics (Day vs Trend), default is "Day", so the Volume bar is colored based on period's open/close. (see a comparison in screenshot). you can use with any period or aggregation.
A double moving average has been added as an extra. i can see short-term (7 day EMA by default) volume vs long-term EMA(200 by default). for a better clue on sudden shifts in volume.
you can change settings for the study (Fast Period, Slow, and Volume Bias logic).
hope other fellow traders will find this as useful as i do,
RedK
October 13th, 2012 06:21 AM tony2604 Thanks for sharing. Very useful. Question please: when I swith back with alt-space-w the window is bigger always for hei
ght of title bar. Cant grab charts that are at bottom of screen then to resize. Any hint? Thanks
January 15th, 2013 01:12 AM jpstyles2002 Looks great and am excited to get it set up in my TOS charts...Just one problem for me though...not usre how to import t
his into my TOS charts as an indicaotr, can you give me some guidence as to how to import this indicator? My thank in ad