[blackcat] L2 Ehlers MESA Stochastic Indicator

7 thg 1, 2021

Level: 2

Background

John F. Ehlers introuced MESA Stochastic Indicator in Jan, 2014.

Function

The MESA Stochastic oscillator, a stochastic successor that removes the effect of spectral dilation through the use of a roofing filter.

Key Signal

MESAStochastic --> Ehlers MESA Stochastic Indicator fast line
Trigger --> Ehlers MESA Stochastic Indicator slow line

Pros and Cons

100% John F. Ehlers definition translation, even variable names are the same. This help readers who would like to use pine to read his book.


Remarks

The 101th script for Blackcat1402 John F. Ehlers Week publication.


Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

Phát hành các Ghi chú

OVERVIEW
The L2 Ehlers MESA Stochastic Indicator is a technical analysis tool based on John Ehlers' work, designed to identify potential buy and sell signals through smoothed price oscillations and trigger lines.

FEATURES

• Smoothed price oscillation using Ehlers' MESA algorithm
• Dual moving average crossover system
• Visual buy/sell signal indicators
• Customizable length parameter
• Integrated alert functionality for trade signals

HOW TO USE

Add the indicator to your chart
Adjust the "Length" input parameter as needed
Monitor the crossing points between the MESA Stochastic line and the Trigger line
Look for BUY signals when MESA Stochastic crosses above the Trigger line
Look for SELL signals when MESA Stochastic crosses below the Trigger line
PARAMETERS

• Length: Defines the lookback period for calculating highest and lowest values (default: 20)
• Price: Source price data (default: closing prices)

LIMITATIONS

• Works best in trending markets
• May generate false signals during choppy market conditions
• Requires sufficient historical data for accurate calculations

NOTES

• The indicator uses Ehlers' proprietary smoothing algorithms
• Signals are generated through a combination of MESA stochastic oscillations and trigger line crossovers
• Alert conditions are automatically set up for both buy and sell signals