Dual SD Kijun | QuantEdgeB

7 thg 2

Introducing Dual SD Kijun by QuantEdgeB

Dual SD Kijun | QuantEdgeB is a trend-following and volatility-based indicator that enhances the traditional Kijun-Sen with dual Standard Deviation (SD) filtering and a normalized Kijun structure. This system refines trend confirmation and breakout signals by combining price deviation analysis with a dynamic normalization mechanism, providing traders with clear and adaptive entry points.


Key Features:

1. Kijun-Sen with Standard Deviation (SD) Filtering 📏
- The indicator builds upon the Kijun-Sen concept by calculating the midpoint of the highest and lowest price over a given period.
- Two Kijun calculations:
1️⃣ Primary Kijun (Shorter Length)
2️⃣ Normalized Kijun(Longer Length)
- The Kijun acts as the base trend filter, smoothing price action while adapting to volatility.

2. Standard Deviation Weighted Bands (SD Kijun) 📊
- Volatility-adjusted trend confirmation using SD bands around the Kijun-Sen.
- Helps detect trend acceleration and potential reversals based on price deviation.

3. Normalized Kijun for Trend Validation 🔄
- A dynamic normalization function scales the Kijun-Sen relative to price.
- Short EMA smoothing reduces noise for more accurate signals.
- Long EMA smoothing smooths the normalized deviations, refining trend confirmation.

4.Dual Signal Confirmation (SD + Normalized Kijun)✅❌
- Long Signals (🔵): Price must break above the upper SD filter while the normalized Kijun confirms trend strength.
- Short Signals (🔴):Price must drop below the lower SD filter while the normalized Kijun confirms bearish conditions.
- The dual confirmation reduces false breakouts and ensures stronger trend validation.

___

How It Works:

1. Kijun Calculation:
- Computes the midpoint of the highest and lowest prices over a defined period.
- Uses two Kijun-Sen lengths to separate short-term and normalized trends.

2. Standard Deviation Filtering:
- Calculates the price deviation around the Kijun to determine potential breakout points.
- Price must close above/below SD thresholds to trigger a potential trend continuation.

3. Normalization Process:
- The normalized Kijun is divided by price, helping scale deviations across assets.
- Two smoothing factors (Short & Long) refine the normalized Kijun structure.
- Ensures signals remain consistent across different market conditions.

4. Final Signal Production:
- Bullish Confirmation (🔵): Price closes above the upper SD band and the normalized Kijun confirms strength.
- Bearish Confirmation (🔴): Price closes below the lower SD band and the normalized Kijun signals weakness.

___

Use Cases:

✅ For Trend Trading & Breakout Confirmation
- The SD bands help filter strong breakouts, ensuring valid long and short signals.
- If SD bands expand, it signals increased volatility and potential momentum shifts.
- Works best when paired with momentum indicators (e.g., ADX, RSI) to confirm trend strength.

✅ For Trend Validation with Normalized Kijun
- The normalized Kijun acts as an additional filter to ensure price movements are sustainable.
- If both SD and Normalized Kijun confirm a trend, the probability of a strong continuation increases.

✅ For Detecting Market Reversals
- If price fails to break SD bands or the normalized Kijun diverges, it may indicate a weak trend or potential trend exhaustion.
- Helps traders avoid false breakouts and focus on high-probability setups.

__

Customization Options:

1. Kijun Lengths 🏗️
- Primary Kijun Length (Default: 24)
- Normalized Kijun Length (Default: 34)

2. Standard Deviation Settings 📊
- SD Length (Default: 40)
- Long SD Weight (Default: 0.98)
- Short SD Weight (Default: 1.02)

3. Normalization Smoothing 🔄
- Short Normalized Smoothing (Default: 1)
- Long Normalized Smoothing (Default: 1)

4. Color Modes & Visual Enhancements 🎨
- Default, Solar, Warm, Cool, Classic ,X

___

Conclusion:
The Dual SD Kijun | QuantEdgeB provides a powerful and adaptive trend confirmation system by combining standard deviation filtering with a normalized Kijun mechanism. By ensuring dual validation, traders can filter out weak signals and focus on stronger trends. Whether used for breakout confirmation or trend validation, this indicator offers precise, data-driven signals for improved market decision-making. 🚀📈

🔹 Disclaimer: Past performance is not indicative of future results. No trading indicator can guarantee success in financial markets.
🔹 Strategic Consideration: As always, backtesting and strategic adjustments are essential to fully optimize this indicator for real-world trading. Traders should consider risk management practices and adapt settings to their specific market conditions and trading style.

20 thg 2

Phát hành các Ghi chú

Added alerts