I find it most suitable for indicating when to add new contracts to already opened position or if you've missed trend break-out this can find you a nice entry.
Should you have market trending down, you enter when histogram reaches near 0 and you can either wait to change direction and go in the opposite direction or use some "fixed" near 0 detection method.
On the image you can see how nice have been identified places where to add to an existing position, or even enter market if not done so already.
Please check here for early trend change identification and how trading divergences possibilities.
Parameters:
- Adaptive period: you can select to use adaptive period proposed by John Ehlers for short period calculation
- Period multiplier: is to be used if you've selected adaptive period so from short period calculated will be derived long period value by multiplication
- Long LR period/Short LR period: are to be used as fixed values for Linear regression period
- Long/Short smoothing: is SMA smoothing applied to LinReg
Notes:
- Red/Green histograms are selected on Falling/Rising base respect to previous value.
- In debug mode you can see additional 2 lines plotted. Those are actual angle measure line for longer and shorter period LR.
- Development of this indicator was inspired by the following post Linear Regression Angle Measurement by Doug Tucker
- There's a forum thread on this indicator opened here.
- Exported using NT 7 b18
Category NinjaTrader 7 Indicators
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