John F. Ehlers introuced Enhaced Corona Swing Position Indicator in April, 2012.
Function
John Ehlers's corona indicators, "Corona Charts," provide a "multidimensional" view of market activity. In the article "Corona Charts" in Nov, 2008, John Ehlers further developed his earlier work on market cycles. A new kind of indicator was presented that uses a glow-like effect to present another dimension of data. Implementation of corona charts in pine v4 helps detect dominant cycles in data. It provides a corona chart for swing positions indicator. He made an enhanced version of corona chart after 4 years, which could be used as a range filter to detect sideways and trends. Dr . Ehlers claims that a corona is displayed when the market is in a trend and there is little cyclic component. The swing position indicator shows the phasing of the data within the dominant cycle. In a pure cycle the Swing Position will trace out the shape of a sine wave.
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 79th 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.
Is there any further elaboration on how to use or understand this indicator further? This is what I got from your description: In a pure cycle the Swing Position will trace out the shape of a sine wave. this is a bit difficult to spot just glancing at it. Thanks again for all your contributions.
blackcat1402
⋅
@Uni_ve12se, you may need read Ehlers books first to understand his basics. He models market behaviors as two kinds of signal : cycles and trends. If you have knowlege about DSP, cycles are various sine waves with differents frequency, and trend is a "direct current" or near DC frequency component with very very low frequency. With these, any type of market behavior can be modeled, but with various harmonic components and varying DC components.
Back to this indicator, when dominant cycle is clear when market runing at a major period like sine wave, it does not exhibit corona effects, but a sine wave shape depicting its cycle. On the other hand, when a strong trend is mixing up with weak cycles, it demostrates corona in the heat map.
user1928374560XYZ
⋅
@blackcat1402, Fantastic, looking back at it now I think I have a clearer understanding. Thank you!
blackcat1402
⋅
@Uni_ve12se, based on my understanding, corona here can be understood as whale behavior, but not indicating direction neither up nor down, it indicates there is a large power in market move obviously or silently. Corona here is commonly leading ahead with price actions. Insitiution dominates.
However, market is not a symmetric system for up and down, but like a gravity system, up trend requires huge power to pump, but down trend does not require power, it dumps automatically if no whale hold it and individuals will make it like a positive feedback to cause panic selling, until no one is desperate to sell. Then, i call it reachs "the ground" :D
Hi, I'm having issues. None of your L3 scripts besides the banker fund flow are running for me on neither my phone or PC. Is there any recommendations for me to try? I've tried all the source options.