ASI is basically a new name I am giving to my Gain/Loss Moving Average indicator. If you normalize ASI with the moving average of all the changes in price, it becomes identical to . So ASI is basically non-normalized , that is why it should be a more accurate representation of price momentum.
ADMF is an and . Both ASI and ADMF are not range-bound so it is not easy to compare them against each other. When equation is applied to them, they both become range-bound and comparable. The gaps between the two indicator can reveal valuable information about market dynamics. The chart below shows some examples (note the settings).
For conventional usages of , please read https://www.tradingview.com/wiki/Stochas...(STOCH) and https://www.tradingview.com/wiki/Stochas...(STOCH_RSI). I recommend you to find the optimal length by playing with the length in the indicator settings. If this parameter is calibrated properly, this indicator can be a powerful tool for identifying market cycle.
You can get these features (ATH, ATL detection and historical ) for any other indicator using the script below:
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
Lucky for me, as I wouldn't have given the rest of this a second look. (stochastics are either noisy or slow. and MoneyFlow seem to get it wrong a few time to many, might be my understanding :) )
Thank you for putting up a lot of good examples and explanations, with those this becomes a thing of beauty. Never seen anything quite like it.
. I set it up without the signal lines. and use the combination AS / MF, and increased the smoothing slightly.
. It surpasses the ADL I've been using with earlier and cleaner signals.
I'm just looking at some recent trades where I've felt at a loss to explain the priceaction. The moneyflow seems to give a clear picture.
And I think this might even keep me out of the long sideways choppyness.
Thanks again, If after some testing it works realiably; I might modify this to color fill the lines to give a clear reading at a glance.