REQ Help with Trend Indicator

[Blu-Ray]

	Quote:	BlowFish
	AHh I think I see what's missing! If the MA goes from down to up then it goes red to green immediately. If it is still down but close is above then it will go white.

Yes I think that's it, I'll recode it up tomorrow

Cheers

Blu-Ray

[gassah]

Thanks a lot guys for the help.

gassah

[Blu-Ray]

Here's a revised version, using BlowFish's observations, I've compared it with the original picture JJ posted at the start of the thread. It's very close to Traderguiders version using, as you can see on the charts below, there are 3 rogue dots. So the code might not be exact, but this could be down to different platforms handling different data.






Here's the code for it.

inputs: Price( Close ), Length( 5 ),Upcolor( DarkGreen),DnColor ( DarkRed),NColor(White) ; variables: Avg( 0 ) ; Avg = average( Price, Length ) ; Condition1 = Close >= avg and avg >= avg[1]; { Green Dots } Condition2 = Close < avg and avg > avg[1]; { White Dots } Condition3 = Close <= avg and avg <= avg[1]; { Red Dots } Condition4 = Close > avg and avg < avg [1]; {White Dots } plot1(avg,"avg"); if Condition1 then setplotcolor (1,Upcolor); if Condition2 then setplotcolor (1,Ncolor); if Condition3 then setplotcolor (1,Dncolor); if Condition4 then setplotcolor (1,Ncolor);

Hope this helps

Blu-Ray

[Dogpile]

hi guys...

I have been working on something similar so thought I would chime in...

rather than have the indicator follow price as in a close relative to a moving average, personally I find it more useful to compute a price in advance that signals a 'reversal' if touched. Thus you can see a 'mechanical trigger point' in advance rather than having to wait for a bar to close. I realize this is really only a minor difference in what you are doing but thought I would throw this in anyway.

Linda Rashke just did a presentation using her own indicator here:
https://lbrgroup.com/images//Bloombe.../bloomberg.pdf

her indicator paints the bar depending on where the current bar closes relative to the trailing 16 bar high/low. thus, if in a downtrend -- the bar would be red and switch to green on any close that is above the 16-bar low +2.5 avgtruerange's --- she uses: avgtruerange(9), btw.

I have played around these settings and like 1.5 true ranges better and like computing a price in advance rather than waiting for the bar close -- you can use buy and sell stops to enter when you have the computed price in advance.

Here is an example:

[Blu-Ray]

That looks very interesting Dogpile, thank you for introducing us to that, would you mind sharing your code for the indicator at all?

Cheers

Blu-Ray

[BlowFish]

Just had another thought...we still haven't explained 2 whites. I'm confident in guessing (not even going to look at the chart again!) that if the MA is up and you close below you get white and will continue to get white until the MA turns down (red) or you get a close back over the MA (Green).

I think that will make it identical. Its not a bad little indicator though I rather like a 3 period SMA.

Cheers.

[Dogpile]

	Quote:
	would you mind sharing your code for the indicator at all?

but of course. this is a constant work in process. you need a rule in the code to indicate whether the computed reversal price is off the lowest low or highest high -- you can see I set this to be where the midpoint of the last bar is relative to the range of the last 6 bars. if anyone can think of a better way to do this, I am all ears.

	Quote:
	Vars: LowestLow(0), HighestHigh(0); If CurrentBar > 1 Then Begin LowestLow = Lowest (low, 5); HighestHigh = Highest (High, 5); value10=highest(h,6); value11=lowest(l,6); value12=(value10+value11)/2; value13=(H+L)/2; If value13>value12 then begin value1=highesthigh-(AvgTrueRange(5)[1] * 1.5); plot1(value1,"SAR Value"); end; If value13<value12 then begin value2=LowestLow + (AvgTrueRange(5)[1] * 1.5); plot1(value2,"SAR Value"); end; End; If value13>value12 then setplotcolor(1,white) else setplotcolor(1,cyan);

clearly, you cannot use this indicator by itself -- you must incorporate many other factors -- ie, higher timeframe pattern, vwap etc.. whatever you use... but this indicator gives a price as an idea for an entry that you can take or leave.

[Dogpile]

here is an example from today.

I entered ES when it appeared price failed just under VWAP. I did this with a market order before the 'confirmation' of the reversal price triggered. I set a stop-market order at the computed reversal price to enter YM as a way to add to my initial order. I totally screwed up on the YM exit as you can see.

The key here was not this indicator -- but it was nice in the heat of battle to have a computed price to go with. Just an example.

[jjthetrader]

Yes there does appear to be more to it. There seems to be a condition of the closes closeness to the MA. It's almost like there's a very small MA envelope around the MA and until it breaks out of that the second close won't change from white.
There's the added observation that if you're closing above the MA then you get a drastic close below, bypassing that "envelope", it will go straight from green to red and bypass white all together.
I've posted a 5min chart of the ES with the diamonds on so if you guys would like to trouble shoot you can. I can post any chart you like with them on to test with.

[jjthetrader]

Blu-Ray, I'm just trying to make your life difficult. But here's another condition for you that will explain some of the white diamond action.
As you can see in the attached pic, point A should be "green" (mine are blue) because it's the 2nd close above the MA. But it closes below the previous bar which keeps the diamonds white. Then point B closes level to A which also keeps it white. If that would have closed up it would have been green.
Then we see Point C is white as well because it closes below the MA after a close above it. But then look at the next bar. It's wide range up and goes straight to green (blue in my case) because of my MA envelope theory.

So did I ruin your weekend thinking about programming this? lol