[blackcat] L2 FArden Thomas Voting With Multiple Timeframes

2 Mei 2022

Level 2

Background

For Traders’ Tips of November 2020, the focus is F. Arden Thomas’ article in the August 2020 issue, “Voting With Multiple Timeframes”.

Function
F. Arden Thomas sums up the returns by a stochastic indicator in a voting process over seven different timeframes, and uses the resulting votes for trade signals. He shows us a new way of using the classic stochastic oscillator by combining many timeframes into a single value by voting. By using this voting process, buy and sell signals derived from many intervals become clearly visible on the chart. This is an interesting concept that can be applied to many common indicators such as the RSI or ADX, not just the stochastic.

Although the author creates a voting system by counting the number of times the indicator is in overbought/oversold range, I thought it would be interesting to create a composite indicator by averaging the stochastic value over multiple timeframes into a single indicator that moves along the standard scale.

Remarks
Maroon~ Red color bars for bullish market.
Teal~ Green color bars for bearish market.
This is a Level 2 free and open source indicator.

Feedbacks are appreciated.

Nota Keluaran

OVERVIEW
The [blackcat] L2 FArden Thomas Voting With Multiple Timeframes indicator combines Stochastic Oscillators from various timeframes to provide a comprehensive view of market sentiment. By aggregating votes from multiple periods, this script helps traders identify potential buying and selling opportunities across different time horizons 📊🕒.

FEATURES

Calculates Stochastic Oscillators for multiple timeframes:

Daily
Weekly
Bi-weekly
Quarterly
Monthly
Half-quarterly
Quarter
Aggregates bullish and bearish votes based on user-defined percentage levels.

Plots bullish and bearish votes as columns and lines with dynamic coloring:

Bullish votes in shades of teal to lime.
Bearish votes in shades of maroon to red.
Adds visual labels for easy identification of trade signals:

"BUY" labeled in green when bullish votes exceed bearish votes.
"SELL" labeled in red when bearish votes exceed bullish votes.
HOW TO USE

Add the indicator to your TradingView chart by selecting it from the indicators list.
Monitor the plotted bullish and bearish vote columns and lines for changes in market sentiment.
Observe the buy ('BUY') and sell ('SELL') labels on the chart for potential trade opportunities.
Use the indicator alongside other tools for confirmation before executing trades.
INPUT PARAMETERS

Short Term Length: Define the base period for calculating Stochastic Oscillators (default is 21).
Bullish Percentage Level: Set the threshold for bullish votes (default is 20).
Bearish Percentage Level: Set the threshold for bearish votes (default is 80).
Close Price, High Price, Low Price: Select the respective price sources.
Bullish Vote Weight, Bearish Vote Weight: Assign weights to bullish and bearish votes (default is 7).
LIMITATIONS

The indicator may generate false signals in choppy or ranging markets 🌪️.
Users should always confirm signals with other forms of analysis.
The effectiveness of the indicator depends on the chosen parameters and market conditions.
NOTES

Ensure that you have sufficient historical data available for accurate calculations.
Test the indicator thoroughly on demo accounts before applying it to live trading 🔍.
Adjust input parameters to suit different market conditions and timeframes.