This indicator has three built in indicators based on the SMA of HIGH, SMA of LOW, and Stochastic. The baseline indicator is the retreats after departures from SMA of HIGH and LOW.
The first time a HIGH that is above the SMA HIGH has a lower HIGH but it still above the SMA HIGH, a (-) will appear at the bottom. This signals an aggressive entry point for potential coming downtrend. The second time the HIGH produces a lower high but is still above the SMA HIGH, a (S) will appear at the bottom which signals a more conservative entry point for potential coming downtrend. All of the opposite information is true of reversals beyond the SMA LOW.
When these reversals appear the same time the Stochastic is overbought or oversold, a red bar (overbought and potentially coming down) or a green bar (oversold and potentially coming up) will appear. NOTE: Aggressive symbols occur more often and will always occur when a conservative symbol appears. When a conservative indicator and respective overbought/oversold level occur at the same time, the bar is darker in color.
You can enter positions at any one of the indicators, however, the darker bars are what I look for. This has a high success rate but cannot guarantee results every time. I recommend adjusting the SMA, and Stoch parameters as well as time periods. I have had success with this indicator while day trading the 5, 10, 15, 30, 65 minute periods as well as daily and weekly periods. Every symbol traded can provide differing results based on the parameters used.
Please feel free to leave feedback and I know this can work well for you!
I have been toying with the settings and found a setup that is very accurate.
In the Inputs tab of the script make the
Length - 19
SmoothK, SmoothD, and both moving averages - 10
In the Style tab of the script:
Turn off (uncheck) Agressive Down Trend Entry, and Aggressive Up Trend Entry
Also turn off the second set of Background Colors near the bottom
Basically by turning off all of the Aggressive Entry symbols and colors, the Conservative Entries are all that will display.
With these modifications, run it past your symbols of interests and timeframes to backtest their accuracy.
mjeng
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I see a B signal as well as the S signal. What exactly is the B signal?? Thanks for the indicator!
kutlwanotisane10000
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Hello there were can i download this indicator?
StockSignaler
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@kutlwanotisane10000, I am working on putting it on github and making it work on multiple platforms and programming languages
StockSignaler
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I went back and checked this against the markets in 1999 and 2007. It not only signaled prior to the crash, it also signaled the bottom in 2009.
In the Inputs tab of the script make the
Length - 19
SmoothK, SmoothD, and both moving averages - 10
In the Style tab of the script:
Turn off (uncheck) Agressive Down Trend Entry, and Aggressive Up Trend Entry
Also turn off the second set of Background Colors near the bottom
Basically by turning off all of the Aggressive Entry symbols and colors, the Conservative Entries are all that will display.
With these modifications, run it past your symbols of interests and timeframes to backtest their accuracy.