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Nicholishen,
Thank you for your work.
Can we have little more explaination about the indicator you wrote.
Color bars? etc.
Rgds,
SFX
Here is an explanation of Trend Traffic. The basis of this indicator is to compare the MACD of two different TF as an oscillator. The histogram is the higher TF as stated in the variable high_period_comparison. The histogram is green when the signal on the higher TF is fresh and starting to diverge, and the histogram then turns yellow as the EMA’s on the higher TF start to converge. Finally we get to the RedZone, which is actually gray on the hist. This happens when the EMA’s converge past X percent of the highest point of divergence for that trend cycle. For example the RedZone is set to .50 and the MAX divergence on the highperiod EMA’s (per cycle) is .0003 then the Histogram will appear Gray when EMA’s converge to .00015. The white line is the MACD of the Fast and Slow EMA on whatever TF is on the chart. The Red Markers are points where the STdDev is only moving higher and has moved past the specified point.
Looking through the history, I can see a couple of different ways to use this. For the following examples, let’s assume that we are only talking about Long positions and will reverse the criteria for shorts.
Here’s my interpretation, but I am sure that you pro’s can open my eyes to alternatives as well.
I see this sort of like traffic rules and we are trying to get to our destination in the most efficient, and effective way possible.. Hence the name “Trend Traffic”. The Histogram is the Road conditions. The .0003 levels are the Roads. The White line is the vehicle, and the Red markers are speed bursts. When the historgram is green, that means all road conditions are clear, and ok to proceed. Yellow conditions are the construction zones, were we are looking for slow down and to proceed with caution. The gray zones are the uncharted territory, and this is where a good portion of whipsaw, and reversals come. Let’s say that we are in our car (white line) and we are traveling along and following the trend (green) then we come to a construction zone(yellow) which then becomes uncharted territory. Now we have to make a decision. To we continue on this road or do we take the off-ramp to the alternative route. If you look back on the indicator, a good portion of the reversal and new trends move before the indicator naturally takes you to the opposite trend. Breakouts in the grey zone, and occasional the yellow can account for major potential profits. When I see: (a) the white line move past -0.0003 while the zone is grey OR (b) the zone is gray and there is a speed burst on a histogram bar that is under .0003 AND the price moves hard past the bbandstop channel, then I am going to short early (not wait for the higher TF EMA to cross down) and capitalize on the breakout and/or the reversal. More pictures to come…
__________________
"Anyone who has never made a mistake has never tried anything new." -Albert Einstein
Last edited by Nicholishen; 04-11-2006 at 04:53 PM.
Here is an explanation of Trend Traffic. The basis of this indicator is to compare the MACD of two different TF as an oscillator. The histogram is the higher TF as stated in the variable high_period_comparison. The histogram is green when the signal on the higher TF is fresh and starting to diverge, and the histogram then turns yellow as the EMA’s on the higher TF start to converge. Finally we get to the RedZone, which is actually grey on the hist. This happens when the EMA’s converge past X percent of the highest point of divergence. For example the RedZone is set to .50 and the MAX divergence on the highperiod EMA’s (per cycle) is .0003 then the Histogram will appear Grey when EMA’s converge to .00015. The white line is the MACD of the Fast and Slow EMA on whatever TF is on the chart. The Red Markers are points where the STdDev is only moving higher and has moved past the specified point.
Looking through the history, I can see a couple of different ways to use this. For the following examples, let’s assume that we are only talking about Long positions and will reverse the criteria for shorts.
Here’s my interpretation, but I am sure that you pro’s can open my eyes to alternatives as well.
I see this sort of like traffic rules and we are trying to get to our destination in the most efficient, and effective way possible.. Hence the name “Trend Traffic”. The Histogram is the Road conditions. The .0003 levels are the Roads. The White line is the vehicle, and the Red markers are speed bursts. When the historgram is green, that means all road conditions are clear, and ok to proceed. Yellow conditions are the construction zones, were we are looking for slow down and to proceed with caution. The grey zones are the uncharted territory, and this is where a good portion of whipsaw, and reversals come. Let’s say that we are in our car (white line) and we are traveling along and following the trend (green) then we come to a construction zone(yellow) which then becomes uncharted territory. Now we have to make a decision. To we continue on this road or do we take the off-ramp to the alternative route. If you look back on the indicator, a good portion of the reversal and new trends move before the indicator naturally takes you to the opposite trend. Breakouts in the grey zone, and occasional the yellow can account for major potential profits. When I see: (a) the white line move past -0.0003 while the zone is grey OR (b) the zone is grey and there is a speed burst on a histogram bar that is under .0003 AND the price moves hard past the bbandstop channel, then I am going to short early (not wait for the higher TF EMA to cross down) and capitalize on the breakout and/or the reversal. More pictures to come…
Thank you very so much. Nicholishen.
Will it be ferrari for us or lamborghini on forex road of world.
Bye,
SFX
Great job
Linear Mode
