Description:
Uses the Reverse Engineered RSI indicator to determine trend. Fifty on the RSI marks the point where the average of up closes is equal to the average of down closes. If the RSI is above this point the average of the up closes is greater that the down closes and vice versa. Instead of using 50 as the point of demarcation, this indicator accounts for noise by defining upper and lower boundaries above and below 50 (default of 52 for upper and 48 for lower). An uptrend is signaled when a low is printed above the upper boundary plot and a downtrend when a high is printed below the lower boundary plot.
Plots for standard deviation or ATR bands are an additional option that can be employed. The upper deviation plot is a multiple of the StdDev or ATR added to the upper boundary plot. The lower deviation plot uses this same deviation value and subtracts it from the lower boundary plot.
Instantaneous Trend from "Cybernetic Analysis for Stocks and Futures" by Ehler. This is a port to ThinkorSwim. This version has the Itrend color coded for up and down trends. The trigger is not colored. If you would like it added, give me a holla.
This indicator is ported from on FatTails' Kaufman Efficiency Ratio indicator for NinjaTrader 7.
The Kaufman Efficiency Ratio shows the amount of "trendiness" versus chop. When the Efficiency Ratio crosses above the chop line, there is a trend. If the Efficiency Ratio crosses below that, the market is range bound.
Efficiency Ratio's above the horizontal chop line cause this line to be coloured yellow to help with the interpretation of chop vs trend.
The Kaufman Eifficiency Ratio is also know as Fractal Efficiency. It can be used as a filter to differentiate between trending conditions and sideways markets.
The efficiency ratio compares the absolute amount of the n-period momentum to the sum of the absolute amounts of the last n close-to-close changes. If all close-to-close changes pointed in the same direction - meaning either n consecutive upcloses or n consecutive downcloses - the fractal efficiency will take the value 100. This is an indication for a strong trend. If the n-period momentum takes the value 0, the fractal efficiency becomes 0 as well, indicating chop.
The fractal efficiency is used by the Kaufman Adaptive Moving Average to identify chop periods.
This version of the Kaufman Efficiency Ratio has a few additional options:
Chopline: I have added a chopline, which depends on the period of the Kaufman Efficiency Ratio. The formula for the chopline is 100/Sqrt(period).
Signalline: I have added a signalline by using a Hull Moving Average(HMA). The market starts trending, when the Kaufman Efficiency Ratio has crossed both the signalline and the chopline from below.
Classic/Balanded: The indicator allows for two different ways of calculating the Kaufman Efficiency Ratio. The 'Classic' option uses the original formula of Perry Kaufman. The 'Balanced' option replaces the absolute amount of the n-period momentum with the absolute amount of the n-period balanced momentum, which is based on a triangular moving average.
Update June 22, 2013: Minor modification to make indicator compatible with indicators/strategies running in COBC = false.
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
This study was inspired by the 9/30 method setup... hope others will find it useful. it's amazing how few lines of code can produce something as effective and nice looking (they don't have to be ugly, you know... )
The K_Trader_Ribbon is a trend following setup based on 2 crossing-MA's concept.
we use WMA and an EMA of shorter length of that WMA.
the "ribbons" shade the area between the EMA, the WMA, and the midline of the Hi/lo Channel of the WMA.
the price/WMA will be on either sides of that channel depending on up/down trend ..
visualizing it this way hides a lot of unnecessary noise..
we can also better visualize the "buy" area (light shading) and the "exit loss" areas (inside the darker shades or if price penetrates the TrendLine)
added a buy/sell signal (up/down arrow) based on the crossing of the WMA with it's EMA (it provides the earliest signal) beside the color clue (red/Green) for an established trend up or down.
couple of nice visual enhancements to expereiment with(hi-contrast clouds and hide/show all lines) - see screenshots
try different length settings.. i liked 4/3 and 6/3 on a 5min chart..
Adjust length settings based on underlying & time aggregation until you see the price bars penetrating the ribbon to the other side of current trend *just before reversal*, and staying within the ribbon during retraces.. this will be the best settings in most cases..
This is my new "magnifier" Zero-Lag Weighted AVErage (K_WAve). the idea I was looking for is to create a moving average that magnifies the price moves and trend direction changes - with as minimum lag as possible.
the concept is mathematically simple, and is based on the same Zero-lag MA technique used in DEMA & TEMA. The values of the line should not be referred to - they mean very little, it's the color and relative position of the peaks/troughs that really matter. Also the intersection points with other MA's on the chart.
Interesting that the K_WAve will indicate trend change sometimes before the Zero-lag WMA. the base WMA and the Zero-lag WMA are exposed by default (can hide them from Study Settings)
K_WAve can be used for swing trading or integrated with trend-following techniques with entry on retraces - the retraces (hooks) can be made more obvious using the K_WAve line.
this works on time or tick charts and any aggregation.
added optional smoothing and adjustable "magnification factor". when set to Smoothing = 1, and Magnify = 0, K_WAve becomes a regular zero-lag WMA.
December 6th, 2013 09:32 PM 1973Hog Thanks, RedK. Just wanted to let you know that I loaded this up to ToS and am experimenting with which Time Frames and S
ettings to use for short term Intra Day trading -- trading the intra day trends that last from 10-30 minutes.
Here is a chart of how I used your system to trade TNA today (12-06-2013). It works very well on a 5 min chart with 4,2
as the setting. It identified the Up trend in the pre market, the chop zone in the first part of the trading day, and th
en the Up trend from 1045 to 1155.
Thanks again.
October 16th, 2013 09:41 PM LukhyG Thanks for This great help
September 29th, 2012 12:33 AM ticker I would be grateful to anyone who can translate into Ninja?
September 15th, 2012 10:06 PM kareem40 Good work again. Nice to see more TOS indicators.
September 13th, 2012 04:47 PM Cloudy Nice, the colors help see the continuation trades. Thanks RedK
March 23rd, 2013 12:42 AM Hguru RedK, An other Great study. I have been playing around with it and it is very responsive once I figured out what setting
August 29th, 2023 01:37 PM Maxie thanks for sharing
June 20th, 2023 01:01 PM peter1 Thank you for sharing it.
December 3rd, 2022 03:02 PM candy
November 28th, 2022 08:58 AM ballhaj Awsome indicator thanks
October 9th, 2021 12:15 PM racecarjw GB, your mind works in a strange but good way. I cant wait to try this out in real market conditions. Thank you for shar