Fractal Trend Trading System [DW]This is an advanced utility that uses fractal dimension and trend information to generate useful insights about price activity and potential trade signals.
In this script, my Advanced FDI algorithm is used to estimate the fractal dimension of the dataset over a user defined period.
Fractal dimension, unlike spatial or topological dimension, measures how complexity or detail in an "object" changes as its unit of measurement changes, rather than the number of axes it occupies.
Many forms of time series data (seismic data, ECG data, financial data, etc.) have been theoretically shown to have limited fractal properties.
Consequently, we can estimate the fractal dimension from this data to get an approximate measure of how rough or convoluted the data stream is.
Financial data's fractal dimension is limited to between 1 and 2, so it can also be used to roughly approximate the Hurst Exponent by the relationship H = 2 - D.
When D=1.5, data statistically behaves like a random walk. D above 1.5 can be considered more rough or "mean reverting" due to the increase in complexity of the series.
D below 1.5 can be considered more prone to trending due to the decrease in complexity of the series.
In this script, you are given the option to apply my Band Shelf EQ algorithm to the dataset before estimating dimension.
This enables you to transform your data and observe how its newly measured complexity changes the outputs.
Whether you want to give emphasis to some frequencies, isolate specific bands, or completely alter the shape of your waveform, EQ filtration makes for an interesting experience.
The default EQ preset in this script removes the low shelf, then attenuates low end and high end oscillations.
The dominant cyclical components (bands 3 - 5 on default settings) are passed at 100%, keeping emphasis on 8 to 64 sample per cycle oscillations.
The estimated dimension is then used to calculate the High Dimension Zone and the Error Bands.
Both of these components are great for analyzing trends and for estimating support and resistance values.
The High Dimension Zone is composed of a high line, low line, and midline that update their values when D is at or above the user defined zone activation threshold.
The zone is then averaged over a user defined amount of updates and zone width is multiplied by a user defined value.
The Error Bands are composed of a high, low, and middle band that are calculated using an error adjusted adaptive filter algorithm that utilizes dimension as the smoothing constant modulator.
The basis filter for the error bands has two calculation types built in:
-> MA - Calculates the filters as adaptive moving averages modulated by D.
-> WAP - Calculates the filters as adaptive weighted average prices modulated by D.
The WAP starting point can be based on the High Dimension Zone being moved or a user defined interval.
You can also define the WAP's minimum and maximum periods for additional control of the initial and decayed sensitivity states.
The alpha (smoothing constant) modulator can be fine tuned using the designated dimension thresholds.
When D is at or below the low dimension threshold, the filter is most responsive, and vice-versa for the high dimension threshold.
Alpha is then multiplied by a user defined amount for additional control of sensitivity.
Band width is then multiplied by a user defined value.
A Hull transformation can be optionally performed on the zone averaging and band filter algorithms as well, which will alter the frequency and phase responses at the cost of some overshoot.
This transformation is the same as a typical Hull equation, but with custom filters being used instead of WMA.
The calculated outputs are then used to gauge the trend for signal and color scheme calculations.
First, a dominant trend indication is selected from its designated dropdown tab.
The available built in indications to choose from are:
-> Band Trend (Outer) - Detects band breakouts and saves their direction to gauge trend.
-> Band Trend (Median) - Uses disparity between source and the band median to gauge trend.
-> Zone Trend (Expansion) - Detects when the high fractal zone expands and saves its direction to gauge trend.
-> Zone Trend (Outer Levels) - Detects zone breakouts and saves their direction to gauge trend.
-> Zone Trend (Median) - Uses disparity between source and the zone median to gauge trend.
Then the trend output is optionally filtered before triggering signals.
There are multiple trend filtration options built into this script that can be used individually or in unison:
-> Filter Trend With High Fractal Zone - Filters the trend using the specified zone level or combination of levels with either disparity or crossover conditions.
There is a set of options for bullish and bearish trends.
-> Filter Trend With Error Bands - Filters the trend using the specified band level or combination of levels with either disparity or crossover conditions.
There is a set of options for bullish and bearish trends.
-> Filter Trend With Band - Zone Disparity Condition - Filters the trend using the specified band level, zone level, and disparity direction.
There is a set of options for bullish and bearish trends.
-> Filter By Zone That Moves With The Trend - Filters the specified trend by detecting when the high fractal zone’s direction correlates.
-> Filter By Bands That Move With The Trend - Filters the specified trend by detecting when the error bands’ direction correlates.
-> Filter Using Wave Confirmation - Filters the specified trend by detecting when source is in a correlating wave with user defined length.
You can also choose separate lengths for bullish and bearish trends.
-> Filter By Bars With Decreasing Dimension - Filters the specified trend by detecting when fractal dimension is decreasing, suggesting source is approaching more linear movement.
The filtered trend output is then used to generate entry and exit signals.
There are multiple options included to fine tune how these signals behave.
For entries, you have the following options built in:
-> Limit Entry Dimension - Limits the range of dimensional values that are acceptable for entry with user defined thresholds.
This can be incredibly useful for filtering out entries taken when price is moving in a more complex pattern,
or when price is approaching a peak and you’re a little late to the party.
-> Enable Position Increase Signals - Enables more entry signals to fire up to a user defined number of times when a position is active.
This is helpful for those who incrementally increase their positions, or for those who want to see additional signals as reference.
-> Limit Number Of Consecutive Trades - Limits the number of consecutive trades that can be opened in a single direction to a user defined maximum.
This is especially useful for markets that only trend for brief durations.
By limiting the amount of trades you take in one direction, you have more control over your market exposure.
There is a set of these options for both bullish and bearish entries.
For exits, you have the following options built in:
-> Include Exit Signals From High Fractal Zone - Enables exit signals generated from either crossover or disparity conditions between price and a specified zone level.
-> Include Exit Signals From Error Bands - Enables exit signals generated from either crossover or disparity conditions between price and a specified zone level.
-> Include Inactive Trend Output For Exits - Triggers exit signals when the filtered trend output is an inactive value.
-> Dimension Target Exit Method - Triggers exit signals based on fractal dimension hitting a user defined threshold.
You can either choose for the exit to trigger instantly, or after dimension reverts from the target by a user specified amount.
-> Exit At Maximum Entry Dimension - Triggers exit signals when dimension exceeds the maximum entry limit.
-> Number Of Signals Required For 100% Exit - Controls the number of exit signals required to close the position.
You can also choose whether or not to include partial exits.
Enabling them will fire a partial signal when an exit occurs, but the position is not 100% closed.
Of course, there is a set of these options for bullish and bearish exits.
In my opinion, no system is complete without some sort of risk management protocol in place.
So in this script, bullish and bearish trades come equipped with optional protective SL and TP levels with signals.
The levels can be fixed or trailing, and are calculated with a user defined scale.
The available scales for SL and TP distances are ticks, pips, points, % of price, ATR, band range, zone range, or absolute numerical value.
Now what if you have some awesome signals of your own that you’d like to use in conjunction with this script?
Well good news. You can!
In addition to all of the customizable features built into the script, you can integrate your own signals into the system using the external data inputs and linking your script.
This adds a whole new layer of customization to the system.
With external signals, you can use your own custom dominant trend indication, filter the dominant trend, and trigger exits and protective stops using custom signals.
The signal input is an integer format. 1=Bull Signal, -1=Bear Signal, 2=Bull Exit, -2=Bear Exit, 3=Bull SL Hit, -3=Bear SL Hit, 4=Bull TP Hit, -4=Bear TP Hit.
You can also use the external input as a custom source value for either dimension or global sources to further tailor the system to your liking.
The color scheme in this script utilizes two custom gradients that can be chosen for bar and background colors:
-> Trend (Dominant or Filtered) - A polarized gradient that shows green scaled values for bullish trend and red scaled values for bearish trend.
The colors are brighter and more vibrant as perceived trend strength increases.
-> Dimension - A thermal gradient that shows cooler colors when dimension is higher, and hotter colors when dimension is lower.
Both color schemes are dependent on the designated dimension thresholds.
The script comes equipped with alerts for entries, additional entries, exits, partial exits, and protective stops so you can automate more and stare at your charts less.
And lastly, the script comes equipped with additional external outputs to further your analysis:
-> Entry And Exit Signals - Outputs in the same format as the external signal input with these additions: 5=Bull Increase, -5=Bear Increase, 6=Bull Reduce, -6=Bear Reduce.
You can use these to send to other scripts, including strategy types so you can backtest your performance on TV’s engine.
-> Dominant Trend - Outputs 1 for bullish and -1 for bearish. Can be used to send trend signals to another script.
I designed this tool with individuality in mind.
Every trader has a different situation. We trade on different schedules, markets, perspectives, etc.
Analytical systems of basically any type are very seldom (if ever) “one size fits all” and usually require a fair amount of modification to achieve desirable results.
That’s why this system is so freely customizable.
Your system should be flexible enough to be tailored to your analytical style, not the other way around.
When a system is limited in what you can control, it limits your experience, analytical potential, and possibly even profitability.
This is not your typical pre-set system. If you're looking for just another "buy, sell" script that requires minimal thought, look elsewhere.
If you’re ready to dive into a powerful technical system that allows you to tailor the experience to your style, welcome!
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This is a premium script, and access is granted on an invite-only basis.
To gain access, get a copy of the system overview, or for additional inquiries, send me a direct message.
I look forward to hearing from you!
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General Disclaimer:
Trading stocks, futures, Forex, options, ETFs, cryptocurrencies or any other financial instrument has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in stocks, futures, Forex, options, ETFs or cryptocurrencies.
Don’t trade with money you can’t afford to lose.
This is neither a solicitation nor an offer to Buy/Sell stocks, futures, Forex, options, ETFs, cryptocurrencies or any other financial instrument.
No representation is being made that any account will or is likely to achieve profits or losses of any kind.
The past performance of any trading system or methodology is not necessarily indicative of future results.
System
NN Trading SystemThis indicator is an attempt to be all-in-one solution that follows the structure of NNFX Youtube channel. The components may vary from trader to trader. This is my compilation. If you have any ideas to make it better, let me know.
Brief Info about the structure:
The trader chooses best indicators for the positions described below; enters and exits positions strictly based on the consensus of the indicators. Here are components:
1. Baseline (trend line): I usually use "Regression Line" indicator that can be found in the public library. If the price is above the baseline, look for longs; if the price is below the baseline, look for shorts. This part cannot be included in this indicator since it needs the indicator to be an overlay indicator. So choose and couple with your own.
2. Entry Signal: This is the main indicator that signals opening positions. I tested lots of indicators and finally chose LazyBear's MACD Leader Indicator. This is the modified version of it. When the signal line crosses over the zero line, it's a long signal. When the signal line crosses under the zero line, it's a short signal. You may also use the peaks of the hills it creates as a signal if you think it performs better. It's up to you. I have added dots for the possible peaks using "alma" cross algorithm.
3. Confirmation Signal #1: To open a position both the confirmation signals need to give a green signal. otherwise you are not allowed to open the position. Chosen indicator for this job is ATR. Set your minimum ATR value on the settings box and if the current ATR on the current timeframe is below the ATR value, a gray line will be drawn over the entry signal line and you should not take the trade. If you are already have a position, this doesn't mean that you should close the position though. It just informs you that momentum is low. YOU NEED TO ADJUST THIS ATR LIMIT FOR EVERY ASSET AND TIMEFRAME YOU TRADE. For BTC 1min, my example limit value is 8. Find your best value.
4. Confirmation Signal #2: I have chosen Aroon indicator for trend confirmations. If the background of the indicator is green, it's suitable for longs, if it's red, it's suitable for shorts. If the color is brighter, that means the signal is stronger. Aroon is a very powerful indicator but you need to find the best settings for the timeframe you are using.
5. Exit Signal: This one is the hardest role to find an indicator for. The one i ended up choosing is "Relative Vigor Index". It doesn't give good entry signals but with the right settings, it works as an exit signal in my experience. This signal is drawn as a green and red boxes and the top and the bottom of the indicator area. If it changes color while you have a position, it's time to close the position. Find the right settings for it so that every time it signals reversal, you obey the rule and close the position.
To summarise, the components are:
* ATR
* MACDL
* ALMA CROSSOVER
* AROON
* RVGI
plus
* a trend line indicator of your choice added seperately to your chart.
My recommendation is to turn all the indicators off on the settings box and enable on by one finding the best values individually. If you found the best settings for an asset and timeframe, please share in the comments for others.
You may leave a comment for bug reports, feedback and suggestions.
Hope it works for you.
Cheers.
Moving Average Variable Kit W/ Alerts V3 [Moon]Create your own MA system
5 basic kinds of Moving Average types available for now
DEMA
EMA
SMA
TEMA
WMA
Mix and match moving average types and lengths.
Create your own alerts built into Tradingview.
Turn alerts or MAs off or on with 1 click.
Choose visual transparency and alert coloration - everything is customizable.
Trend candles on crossovers.
Choose your MA input source.
Create your own MA cloud or cloud ribbons.
Trend MA coloration on candle or bar interactions.
It really empowers you to experiment and create your own trading system or strategy.
Don't be afraid to use Renko or Heikin Ashi for trend spotting or reversals.
Copy built in exchange bands or indicators for an edge up on the competition or exchange users (these are heavily watched and in my opinion do affect the price action especially on smaller coins like alts).
This is Binance's default kit that you can easily make (7/25/99) SMAs.
Works well on traditional markets or Forex | Should be cross compatible on any asset or timeframe.
Turn off a majority of signals except for "buy" or "sell" alerts. Use these clusters to DCA, short, long or take profit.
Use it to monitor classic "Golden" or "Death" crosses - Set a TV alert to get a notification when it official goes off.
These are just a few of the things you can create. I encourage you to explore further.
Send me a DM if interested.
Elder's Impulse System with weekly EMA Filter - ValenteThis indicator was based on the Elders Impulse System by astraloverflow.
The only difference is that I included the weekly EMA26 as a filter and you can plot it on the graph if you want (unchecking the Weekly EMA26 won't turn the filter off, will only stop plotting it).
The indicator works this way:
When the MACD Histogram is growing UP, the EMA13 is pointing UP AND the Weekly EMA26 is pointing UP, the bar is Green
When the opposite is true, the bar is Red.
When any condition from both green and red is not true, the bar is blue.
In my opinion, this particular indicator works better on the D1 time frame. I recommended using the original one, by astraloverflow for other time frames.
I hope it is useful!
[GM ELITE] Dynamic - Setup AssistantAdditional Tool for Customers of Dynamic. Over 20 indicators built in. Separate Indicator windows to help setup GM Dynamic Algorithm. Toggle which indicator you want to view.
[GM ELITE] Dynamic_Introduction
This is the first of the GM ELITE indicator range. Designed for Algorithmic Traders looking to speed up their process of testing and optimizing their algorithm. This script contains an entire suite of indicators, that work together in unison to find optimal trade entries, based on NNFX rules. There are two versions of this script. One is a strategy and built in back-tester, and the other will update in real time designed for live trading and forward testing.
This script is for live trading/forward testing.
Entries/Exits
The System has 5 indicator slots, and the user can choose one indicator per slot
- Trend Confirmation Indicators to pick when the market has taken off
- Volume and volatility Indicators to determine the strength of the trend or whether the market is ranging.
- Moving Averages for trend bias
- Exit Indicators to signal when to get out!
Money Management
Dynamic allows you to choose your Stop Loss and Take Profit distance based on a multiplier x ATR.
Options to exit the whole trade at TP or at a signal from the exit indicator of your choosing.
Start and End times (Window) to backtest.
Forex - $EVZ
Euro Volatility FX Vix ( aka $EVZ) is built in. You can toggle a filter for low $EVZ or whether or not EVZ is above average. No signals will be given if EVZ is below threshold. EVZ is one of the best indicators of overall forex market volume and volatility .
Customization
Several visual and color customization options. Thousands of possible parameter combinations.
The "bias" or mode of the Confirmation Indicators appears at the top and bottom of the screen as horizontal rows of triangles.
For any two-line Indicator (eg MACD ) if the fast line is above the slow line, the triangles are green, other-wise, they are red.
For any "Level Cross" indicator, when the line is above the level, the triangles are green, otherwise, they are red.
The Arrows at the bottom of the screen determine whether or not there is sufficient volume
DEMA Indicator
The DEMA indicator is part of the stock analysis software trading system and will highlight on the chart when the moving average and candle are touching on a certain percent ratio. When the candle is GREEN and touching the moving average in the correct ratio it will show a GREEN D below the candle. If the candle is RED and it is touching the moving average in the correct ratio it will plot a RED D above the candle.
If you look at any of these charts you will see the red and green D's. The green D's below the green candles would signal a more bullish looking setup where as a red D would signal a more bearish looking setup.
This indicator is great when added to the complete system to look for entries but also exits. This indicator has been used by myself for many years as a trading professional.
Uber Baseline [UTS]Uber Baseline is a highly customizable Baseline component for any trading system. Different strategies can be applied making it a powerful tool for every trader.
General Usage
The Baseline is used as an indication of the prevailing trend and helps keeping the trader out of bad trades.
Price above the Baseline only allows for LONG trades and below Baseline only allows for SHORT trades.
On price cross upwards from below Baseline and and candle close above Baseline the movement can be considered as bullish. Controversy if price crosses Baseline downwards from above and and candle closes below the baseline the movement can be considered as bearish.
Hence, ENTRY Signals for LONG or SHORT can be derived from those Baseline crosses.
Furthermore, any Baseline cross can also be treated as valid EXIT signal for an open position as the movement indicates a possible shift in trend.
Price that moves with unusual high volatility into one direction often tends to not trend but instead pulls back. Overshoot of the base line (default setting: 1x ATR) is recognized but does not produce an ENRTY signal, only an EXIT signal.
Advanced techniques can incorporate the one-candle-rule waiting for pullbacks after Baseline overshot following a possible ENTRY in direction of the new trend.
Trend traders can also look for Baseline bounces after an ENTRY signal for confirmation and better trade entries.
Moving Averages
16 different Moving Averages are available:
ALMA (Arnaud Legoux Moving Average)
DEMA (Double Exponential Moving Average)
EMA (Exponential Moving Average)
FRAMA (Fractal Adaptive Moving Average)
HMA (Hull Moving Average)
JURIK (Jurik Moving Average)
KAMA (Kaufman Adaptive Moving Average)
Kijun (Kijun-sen / Tenkan-sen of Ichimoku)
LSMA (Least Square Moving Average)
RMA (Running Moving Average)
SMA (Simple Moving Average)
SuperSmoothed (Super Smoothed Moving Average)
TEMA (Triple Exponential Moving Average)
VWMA (Volume Weighted Moving Average)
WMA (Weighted Moving Average)
ZLEMA (Zero Lag Moving Average)
A freely determinable length allows for sensitivity adjustments that fits your own requirements.
Trend Visualization
If the predominant trend direction is DOWN the moving average is painted red. If the trend direction is UP the moving average is painted in green.
If the movement is FLAT then the color is gray.
Alerts
Traders can utilize the following signals to trigger alerts from:
Bull Cross
Bear Cross
Overshoot Up
Overshoot Down
Those values are > zero if a condition is triggered.
Alert condition example: "Bear Cross" - "GreaterThan" - "0"
Follow The TrendFollow the trend system
The system uses MA20 as trailing stoploss and marks the strong trending area with color yellow.
This system only uses for stock and Long position.
Chaloke SystemChaloke System
Buy=Short>Middle and Close > Short ,barcolor(green)
Sell=Close < Long or Short<Long,barcolor(red)
Daily RangeHey traders,
at first thanks to the one and only Master Educator Stefan Kassing for sharing his legendary system with us!
And also credit to Mortdiggiddy , RootDuk and PineCoders for helping me with the script =)
This script is calculating the daily range (in pips) of the current market you are in, in relation to the last 70 days (10 weeks) .
It is used for a possible Take Profit in Stefan Kassing's System .
How to add the script to your chart:
1. Click " Add to Favorite Scripts "
-> i.imgur.com
2. Go in the Chart & click the little arrow in the upper bar and then click " Daily Range ", then the Daily Range appears in the top left corner
-> i.imgur.com
To avoid errors make sure to right-click the Y-Axis on the right side of the chart and then left-click "Scale Price Chart Only" .
-> i.imgur.com
Also be aware that the daily range is only showing up , if you are in the daily time interval or below and you are not hovering with the cursor over the past candles respectively above or below them .
If you are using this script in exotic currencypairs or uncommon other markets , the daily range can be incorrect or not showing up .
So don't hesitate contacting me , then I will try to add the markets that you want to.
To change the color or the decimal places of the number, you can click the gear in the upper left corner.
-> i.imgur.com
Happy Pips
X Period High/Low/MidToday we have a simple, but endlessly versatile, indicator that plots the X Period High/Low/Mid of your chosen market.
Traditionally the 52 week High/Low is used as a breakout signal. However, by changing to an X period, and adding a midway line, we create a more versatile indicator that can be tailored to various markets.
By default it's set at 250 periods (because I like the 250 period moving average), and I generally trade H4 and Daily time frames. But tweak it to your liking, you just have to modify the length periods by your desired time frame and lookback length. E.g. to create a 52 week indicator on the daily time frame, enter a length of 260 in the indicator (5 days per week * 52 weeks = 260).
For the above reason, I haven't made this indicator MTF, as there's no real need. However, if users find it easier I can look at adding it later.
Also, the mid point between an X period high/low is often a good trend-follower, as well as acting as support/resistance . I encourage you to experiment with different ways of using this indicator. Entire systems (if your risk management is correct) can be built and traded from this one indicator.
Good luck.
DD
21EMA trading system [CosmonautC] Got inspired by @DropTopSakky to make this after he had been talking about the significance of the 21EMA for a long time
Recommnedation: Use this on the 1-hour to 15 minute timeframe. Will add a feature in the future for lower timeframes. For now lower timeframes have too much noise though.
Was bored today so decided to make a system based on the 21 period EMA. There are oversold, overbought and trend based signals all in one (yes only based on EMA, no other indicators)
There are also options to configure length and moving average type.
Red/green circles = Price will go up/down (trend is bullish or bearish)
Red/green crosses = oversold/overbought
Enjoy!
Mega Trend Plus - S&P 500 Trend Follower / Market GaugeFirstly, 100% of the credit goes to Greg Morris @ Stockcharts.com for the article detailing the concept and most of the settings/components. I've simply implemented his idea. I haven't sought permission from him, but given that he was open with the components of the indicator I'm assuming he's happy for me to go ahead and code this in pinescript. See the article here: stockcharts.com
Okay, so this is part of a system/indicator Greg outlined in the article that he calls Trend Gauge. The idea is fairly simple: take a group of indexes that cover the breadth of the market you want to trade, track their relationship/position to their 200 period Exponential Moving Average (EMA), and assign scores to bull/bear crosses + relative location to the EMA. Once you've normalized and aggregated the scores you finish up with a trend following indicator that works surprisingly well.
This part is called Mega Trend Plus, and tracks whether an index is above or below its 200 period EMA. I'll be releasing the second part ("Trend Strength") soon. Once that's done I'll combine them to form the full "Trend Gauge" indicator.
I decided to provide the base version that people can then experiment with and tweak to their liking, so Greg's version shown in the article is smoother than the one provided here. It's up to you to play with smoothing options, and potentially tweak the weightings of the various components. Please see the script for info on what the various inputs are - I've added notes there.
So, how does it do? Well, as you can see from the chart above it works pretty well overall. The S&P 500 has been fairly trendy over the last few decades, so it's been prime territory for a system like this. It would have kept you out of the big bear markets (particularly GFC & 2015-16), and that's the goal of any trend-based system. They thrive on how little they lose, not necessarily on how much they make.
As you can see, the indicator is pretty choppy. So it's not designed (in the current configuration) to provide accurate buy/hold/sell signals. It currently functions more as a market gauge / strength indicator.
Hopefully you find this concept interesting. It's simple, but the best systems often are.
Please add comments below if you come up with an interesting configuration or variation.
Let me know if you have any queries.
DD
Sar-MA SystemThis Script uses Parabolic SAR (developed by Welles Wilder) and some Moving Averages to calculate BUY/SELL and Close Buy/Close Sell points. Additionally the script adds Stop Loss line that is calculated by using Average True Range (ATR).
Basically, script checks the Parabolic SAR and gets confirmation from moving averages or parabolic sar of the higher time frame.
You will not be in a position all the time because if there is no comfirmation then you need to wait for it. For example after closing BUY position, if no confirmation from MAs or higher time frame SAR then there will not be short position, or vice versa.
if you use it please comment.
If you find this script useful, please consider a donation
BTC: 16XRqyS3Vgh1knAU1tCcruqhUrVm4QWWmR
Complete Trend Trading System [Fhenry0331]This system was designed for the beginner trader to make money swing trading. Your losses will be small and your gains will be mostly large. You will show consistent profit. Period.
The system works on any security you like to trade. I used GBPUSD as an example because of the up swing and down swing it had recently. I tried to put as much information of how the system works in the chart. Hope it helps and is not to cluttered.
I will reiterate how the system works here: Everything is based off of closed price.
Legend
Uptrend: Buy
Green bar: initial start of an uptrend or uptrend continuing. Place order above that bar. If the initial bar does not stray too far from the MVWAP , I will place orders above subsequent bars if no filled occurred.
If initial start of the trend is missed, I will wait for the pullback. A pullback is a close below the MVWAP, and a close above the EMA (Low), RSI is above 50. Orders are placed above the pullback bars with plotted char "B" and also plotted green triangle up. Again orders are placed above those bars. the bars do not notate automatic buys. Don't chase anything. You will miss the initial bar on something because of news or earnings and it rocket up. Just wait, it will pullback. If it doesn't, to hell with it, on to the next.
Take profits: In the indicator you will see "T." That notates to take some profits. It is a suggestion. I was always told to take profits into spikes, as well as you can never lose money if you take profits. Up to you if you want to scale out and take the suggested profits or not.
Exit Completely: In an uptrend, close your entire position on bars colored yellow or red. (Again, closed bars)
In uptrend bars colored orange and black, do nothing, they are just pullback bars. Look for the buy pullback signal, then follow pullback buy rules for an uptrend.
Downtrend: Short
Red bar: initial start of a downtrend or downtrend continuing. Place order below the bar. If the initial bar does not stray too far fro the MVWAP, place orders below subsequent bars.
If initial start on the downtrend is missed, wait for the pullback. A pullback is a close above the MVWAP, and close below the EMA(Low). RSI is below 50. Orders are placed below the pullback bars with the plotted char "S" and also plotted red triangle. Again those bars are not automatic shorts, orders are placed below them. Don't chase anything. Wait for price to come into your plan. The idea FOMO is the stupidest thing ever, how can you miss out on something when it is always there. The market is always there and something will come into your zone. Chill.
"T": same as in uptrend, suggestion to take some profits.
Exit Completely: In a downtrend, close your entire position on bars colored orange or green.
In downtrend you will see bars colored yellow and black, do nothing, they are pullback bars. Look for the pullback short signal and follow pullback short rules.
If you have any questions get at me. Take a look at it on what you trade. Flip it through different securities.
Best of luck in all you do.
P.S. You should not take a trade right before earnings. You should also exit a trade right before earnings.
Elder's Impulse SystemSimilar indicators already published have modifications with respect to Elder's theory. This indicator fulfills literally what is described in the New Trading For A Living.
