Said simply, this indicator is made to help spot STRONG divergences in price momentum in accordance with 7 separate indicators in one chart pane.
1) Time Correlation Ratio
4) Oscillator Ratio
5) Index Ratio
6) Efficiency Ratio
7) Standard Deviation Ratio
1) Primary -- weighted index line of statistically relevant cross levels for each above indicator.
2) Signal line -- lagging Primary average to denote strength of trend, and provide crossover signals
3) / Signal line -- similar to in that this histogram tracks the delta between the and the signal line. Indicating strength of the trend relative to the lagging nature of the signal line.
4) Background Color 1 -- Provides secondary momentum coloring for trend to provide visual confluence with trend behavior.
5) Background Color 2 -- Provides additional momentum coloring for trend to provide enhanced visual confluence with trend behavior.
1) This indicator is primarily used as a divergence detector. When price top or price bottom is observed with a non-conforming top/bottom presented by the indicator a divergence can be assumed which indicates a change in trend.
2) This indicator can also be used as a pure , where pulses up or pulses down will denote price change. As an added benefit when trend are topping/bottoming out, the indicator will present a straight line (indicated by the color "white") which is a good time to take profit.
3) Divergences can be spotted on any time frame, and (currently) require manual drawing. Feature support to add auto divergence painting if possible given backtesting results.
EXAMPLE Divergences are provided on the chart included with this post.
SignalFI was created to help traders and investors to effectively analyze the market based on the Golden Mean Ratio (Fibonacci numbers), plan a trade and ultimately execute it. To help inform and educate market decisions we developed a set of Trading Indicators which are available on TradingView.
SignalFI indicators are just that, indicators. Our indicators are generally configured to use completely historical data (negating repaint), and we advise all alerts created with SignalFI indicators to be fired upon "close" of the current candle. Our indicators can provide valuable context and visualization support when performing market analysis and executing buy and sell decisions. However. we are not financial experts, and all information presented on this site or our other media outlets are for educational purposes only.