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)
I found this in the non-Elite Ninjatrader Strategy downloads posted by @minsalaco who said, "Not my personal work but that I'd share".
Considering the heavy resource requirements to backtest and optimize strategies, and the fact that they are intended to be used as money making tools, not playthings, it is hard for me to understand why many strategies, like the original version of this one, do not use any of the good coding practices that we have been discussing here on BMT for the last two years or so. The person who posted it on BMT did so with good intentions and is not to blame for the deficiencies in the coding.
As an experiment I applied some of those coding ideas to this strategy. It should run about a thousand times better than the original version unless I made some mistakes somewhere.
This strategy was coded with stocks in mind and trades a quantity of 100 by default. Many of the other parameters may also be inappropriate for futures contracts. I ran the latest version A.1 for several hours on CalculateOnBarClose false and it IS workng. It bought 100 cars of NQ at 5:50 AM PT on January 7 at 2708.995 (average overall basis). I sold them manually at 2709.7925 and shut down the strategy because I was afraid that my computer might start talking to Skynet®. However, I am sure we would all would appreciate if anyone backtesting this strategy would let me know, and post their results on the forum.
Thanks to user feedback I did some testing and corrected some mistakes that were in the original release. I could not upload the corrected file to the original post but as of 4:26AM Eastern Time on January 7, you can get it here. Replace the original version with this one.
The following text had been copied mostly verbatim from the entry in the Strategies download area but was in dire need of some editing.
Volatility Breakout Pattern Description
The squeeze signals the end of low volatility periods where the market has built up energy for major moves. Periods of low volatility are the times when the Bollinger bands "move closer together". The width of the Bollinger channel is more sensitive to price volatility than the width of the Keltner Channel, so a Keltner Channel and a momentum index oscillator are added, as mentioned in John Carter's book Mastering the Trade. The momentum index oscillator is used to suggest the trade direction. How does this Setup work?
The quiet period is when the Bollinger Channel width decreases to less than that of the Keltner Channel. The trade signal occurs when the Bollinger Channel moves back outside of the Keltner Channel. The value of the 12 period momentum index oscillator suggests whether to go long (oscillator>0) or short (oscillator<0).
Moves tend to be stronger when the BB Width is the lowest over at least the past 150 bars. Also choose BBWidth < 0.05 for better results on daily data.
This strategy includes trailing stop and stop loss as variables, so you can easily backtest and use the optimizer.
January 7th, 2013
Size: 10.23 KB
Downloaded: 578 times
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Zondor
Hey Elite Circle Members!.. I wanted to go ahead and share something that Big Mike wrote for me that may help you in your trading. This indicator utilizes Volume, Stochastics, and Reversal Bars, to plot out potential reversals in the market.
Volume/Stochastic/Reversal Bars
wanted to go ahead and share something that Big Mike wrote for me that may help you in your trading. This indicator utilizes Volume, Stochastics, and Reversal Bars, to plot out potential reversals in the market.
I have found that it works especially well with Range Charts. I will say the Volume component has to be tuned down under 1.00 or a lot of triggers get filtered out. Probabably some enhancements could be made in that arena.
Caution should be taken on Trending days as a lot of false signals will be generated. It is best used as a supplement to other indicators.
June 13th, 2010
Size: 13.09 KB
Downloaded: 783 times
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Exported using NT Version 7.0.1000.22
The indicator shows the Double Smoothed Momentum - see Stocks & Commodities, May 1991.
Blau Double Smoothed Momentum (DSM-B): The raw Stochastics is calculated as the percentage value for the close within the range created from the highest close and the lowest close over the lookback period. The term "Double Smoothed Momentum" is somewhat misleading. The DSM-B is obtained by separately double-smoothing both numerator and denominator of the raw Stochastics. The double-smoothed value for the numerator is then divided by the double-smoothed value for the denominator.
Stochastics Smoothing: William Blau twice applied an EMA to both numerator and denominator of the raw Stochastics. This indicator allows to use 30 different moving averages for the smoothing. The same moving average type is used for the first and the second average calculation.
Parameters: The lookback period for the raw Stochastics indicates the number of bars for which the highest close and lowest close is determined. The lookback period is comparable to all other Stochastics indicators. The default value is 14 bars. The double smoothing of numerator and denominator is done with two moving averages. The first smoothing is typically done with a faster moving average, the second with a slower moving average.
Signal line: William Blau did not use a signal line for the double smoothed indicators. I have added the signal line, because the cross of the signal line can be used as a trend indication. Moving average type and period for the signal line can be selected.
Histogram: The indicator has an option to plot a histogram, which shows the difference between DSM and signal line.
Trend definition: The indicator exposes the current trend via an IntSeries. The trend can be determined based on the DSM (rising & not oversold, falling & not overbought, neutral), the signal line (rising & not oversold, falling & not overbought, neutral)) or the DSM / signal line crosses. All trend definitions are not straightforward, but require a higher close to switch to an uptrend, or a lower close to switch to a downtrend. Moreover the DSM / signal line cross will only show an uptrend, when not oversold and a downtrend when not overbought.
Paint bars: The paintbars can be used to plot the trend information. The trend states are uptrend, downtrend and neutral trend as explained above. It is possible to apply the indicator to the price panel and unselect the indicator plots. This allows to use the indicator as a "paintbar only" indicator.
Sound alerts: The indicator comes with sound alerts which are triggered when the trend changes. The sound files are included with the zip file and should be manually copied into the directory Documents -> program files (x86) -> NinajTrader 7 -> sounds.
The indicator allows to display the Double Smoothed Stochastics - see Stocks & Commodities, January 1991. The Double Smoothed Stochastics as introduced by William Blau should not be confused with the better known Double Smoothed Stochastics (DSS) indicator by Walter Bressert.
Blau Double Smoothed Stochastics (DSS-B): The raw Stochastics is calculated as the percentage value for the close within the range created from the highest high and the lowest low over the lookback period. The DSS-B is obtained by separately double-smoothing both numerator and denominator of the raw Stochastics. The double-smoothed value for the numerator is then divided by the double-smoothed value for the denominator.
Stochastics Smoothing: William Blau twice applied an EMA to both numerator and denominator of the raw Stochastics. This indicator allows to use 30 different moving averages for the smoothing. The same moving average type is used for the first and the second average calculation.
Parameters: The lookback period for the raw Stochastics indicates the number of bars for which the highest high and lowest low is determined. The lookback period is comparable to all other Stochastics indicators. The default value is 14 bars. The double smoothing of numerator and denominator is done with two moving averages. The first smoothing is typically done with a faster moving average, the second with a slower moving average.
Signal line: William Blau did not use a signal line for the double smoothed indicators. I have added the signal line, because the cross of the signal line can be used as a trend indication. Moving average type and period for the signal line can be selected.
Histogram: The indicator has an option to plot a histogram, which shows the difference between DSs and signal line.
Trend definition: The indicator exposes the current trend via an IntSeries. The trend can be determined based on the DSS (rising & not oversold, falling & not overbought, neutral), the signal line (rising & not oversold, falling & not overbought, neutral)) or the DSS / signal line crosses. All trend definitions are not straightforward, but require a higher close to switch to an uptrend, or a lower close to switch to a downtrend. Moreover the DSS / signal line cross will only show an uptrend, when not oversold and a downtrend when not overbought.
Paint bars: The paintbars can be used to plot the trend information. The trend states are uptrend, downtrend and neutral trend as explained above. It is possible to apply the indicator to the price panel and unselect the indicator plots. This allows to use the indicator as a "paintbar only" indicator.
Sound alerts: The indicator comes with sound alerts which are triggered when the trend changes. The sound files are included with the zip file and should be manually copied into the directory Documents -> program files (x86) -> NinajTrader 7 -> sounds.
Update March 13, 2014: Trend filter modified. Histogram added.
This is the popular Woodies CCI indicator, which was made popular by ken wood (25+ years trading experience) founder of the Woodie CCI club which is a large community of traders. There's actually a full system behind this indicator which I have personal never tried but a Google search will present a lot of information on the topic.
This indicator is just a modified version of the original CCI indicator. The CCI itself is a momentum indicator. Such indicators all work in the same basic fashion - plot the difference between a "fast" measure of price and a "slow" measure. In the case of the CCI, the "fast" measure is the price itself, and the "slow" measure is a moving average. Thus when we look at the CCI, what we are actually seeing is a measurement of the deviation of price from its moving average, normalised to fit on a scale of roughly -200 to +200.
Typically, traders of Woodies system trade very short timescales - 3 or 5 minute charts being common. I do NOT trade the Woodies system so I personal can't comment on it.
05/24/2013)
DEPRECATED..... use the new version xcStochMACD ....
Allows you to plot a Stochastic from a different time frame on your chart.
Typical use is to view a larger time frame Stochastic on a smaller (faster) chart....
(EX: Plot a 5min Stochastic on a 1min chart).
Also allows you to plot a Stochastic from a different BarType on your chart.
The example shown plots a RangeNoGap(5) on a Tick Chart.....but you can plot
Minute Stochastic on Tick Charts or Range charts....or vice versa. You can plot
any accepted bartype Stochastic on any other accepted bartype chart.
Accepts standard Ninja Minute, Tick, and Range bars.....and.....accepts BMT RangeNoGap Bars. (NOTE: For those who do not have the RangeNoGap bars installed, you may get a warning message in the Ninja Log informing you that "Custom2 could not be found". In this case Ninja simply uses the default value of the indicator. Ninja will work quite fine....but if you have occasion to check your logs, it will let you know that you don't have that bartype installed.
CAUTION: if you plot a Stochastic from a very small/fast chart, on an extremely large/slow chart...the code will still work, but the "visual" effect will most likely not be helpful. The Stochastic from the fast time frame will go up and down so much that it will look like a fine tooth comb.....
I don't care about the colors or shape of the indicator or if it's above 80 or under 20
Only the UP and DOWN values
Stay long until there's value above Zero in DOWN
Stay short until there's value above Zero in UP
September 27th, 2010 01:11 PM fxprobie I have been using this on both 6.5 and NT7 and it works well on both. Only bug bear which is minor and of my own making
is that I sometimes like to have it updated live. ie not on bar close and this can give a couple of wiggley bits. Start
s one colour going down and then changes and goes up leaving spikes. Moral: wonderful indicator not to be used on live u
January 15th, 2013 12:12 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
December 29th, 2016 01:08 PM WattMan Thanks for this looks promising as I use the default Stoch strategy within ToS in my current approach that I am trying t
o sharpen. Your indicator does add value. As I was trying to get a strategy version implemented, I wanted to know your t
houghts on how you would define entry/exit points on this indicator? You mentioned you use this on 5min charts, I typica
lly use 2h charts - while my strategy along with the default Stoch looks promising, your indicator is eluding me... Feel
free to PM me if you want to take this offline...
September 9th, 2012 03:05 AM Herbert Thank you for a well don Work
September 3rd, 2012 01:02 PM kareem40 thanks for all your work. Well done.
September 2nd, 2012 01:55 AM Cloudy Good going RedK, thanks!
September 1st, 2012 06:48 PM Hguru KR,
This looks very interesting. I just downloaded it and the heading says V5 but inthe study it says V4 is this correct. I
trade futures Crude/CL and Dow/YM have you tested it yet on futures and also is there a better time period that this stu
dy tends to look and work consistently better at. I tend to look at the tick charts and 1, 5 and 15 minute charts so jus
t wondering what to expect and what type of settings to have and also how do i get the top study as well.
August 5th, 2014 08:23 AM landau I will give you 3 stars for this one,becahttps://cdn3.bigmiketrading.com/images/smilies/smile.gifuse it sounds like a gr
eat idea. I haven't tried it yet though.
thanx
January 19th, 2013 11:42 AM minsalaco Classless post. Thx for the commentary unrelated to the strategy. Simply posting and noting an Updated Version would h
ave been sufficient. Another example of no good deed goes unpunished.