The serious mathematical theory is incorporated in these some lines of code. I know how to use it. Certainly, I do not use only this tool, but i know that it is smoother, more accurate and has low time lag. I ve said this indicator is not Holy Grail, but it is much better, than Stochastic and so on. (The theory is based on mr Spearman researches)
An Indicator
- Thread starter UM_manager
- Start date
Attached, please find a chart comparing your indicator with stochastics. I shortened the 'lens const to 5 as the 100 didn't produce anything useful (or so it appears). The chart after this one contains the 100 lens const. In order to properly backtest your indicator, could you provide what signal you use to trigger a possible trade (e.g. indicator crosses zero line = long).
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=888545>
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=888548>
The middle pane used in the above charts is a smoothed version of the indicator code. Here is the code used translated straight from EL Code. The code runs in Wealth-Lab Developer
------------------------------------------------------------
var j,hh,b,f : integer;
const Len = 5;
var R2: array[0..Len] of integer;
var PR: array[0..Len] of float;
var UMindicator : integer = CreateSeries;
var Value33 : float;
var Bar : integer;
for Bar := Len to BarCount - 1 do
begin
for j := 0 to Len do
begin
PR[Len-j] := @#Close[Bar-(Len-j)];
R2[j] := j;
end;
for hh := 0 to Len do
begin
for j := 0 to Len-2 do
begin
var first : integer = Len-R2[j];
var second : integer = Len-R2[j+1];
if @#close[Bar-first] > @#close[Bar - second] then
begin
b := R2[j];
R2[j] := R2[j+1];
R2[j+1] := b;
end
end
end;
Value33 := 0;
for j := 0 to Len do
begin
Value33 := Value33+Power((R2[j]-j),2);
end;
@UMindicator[Bar] := 1-(6*Value33)/(Power(Len,3)-Len);
end;
PlotSeries(UMindicator, CreatePane(60, false, true), #blue, #thin);
var pane : integer = CreatePane(60,false, true);
PlotSeries(SMASeries(UMindicator,2), pane, #blue, #thin);
PlotSeries(SMASeries(SMASeries(UMindicator,2),3),pane, #red, #thin);
---------------------------------------------------------------
- Spydertrader
------------------------------------------------------------
var j,hh,b,f : integer;
const Len = 5;
var R2: array[0..Len] of integer;
var PR: array[0..Len] of float;
var UMindicator : integer = CreateSeries;
var Value33 : float;
var Bar : integer;
for Bar := Len to BarCount - 1 do
begin
for j := 0 to Len do
begin
PR[Len-j] := @#Close[Bar-(Len-j)];
R2[j] := j;
end;
for hh := 0 to Len do
begin
for j := 0 to Len-2 do
begin
var first : integer = Len-R2[j];
var second : integer = Len-R2[j+1];
if @#close[Bar-first] > @#close[Bar - second] then
begin
b := R2[j];
R2[j] := R2[j+1];
R2[j+1] := b;
end
end
end;
Value33 := 0;
for j := 0 to Len do
begin
Value33 := Value33+Power((R2[j]-j),2);
end;
@UMindicator[Bar] := 1-(6*Value33)/(Power(Len,3)-Len);
end;
PlotSeries(UMindicator, CreatePane(60, false, true), #blue, #thin);
var pane : integer = CreatePane(60,false, true);
PlotSeries(SMASeries(UMindicator,2), pane, #blue, #thin);
PlotSeries(SMASeries(SMASeries(UMindicator,2),3),pane, #red, #thin);
---------------------------------------------------------------
- Spydertrader
I thought that nitro was the only serious math guy on this board.
It really doesn't look much different than a double stochastic. Would you buy and sell at the cross of the 0 line, or use it to determine trend?
Guys! Your problem that you search for something that would give you profit without efforts. Such does not happen. This indicator is (in my opinion) better than RSI or Stoch. BUT! At its core, it is still a momentum oscillator. Thus it can be used in the same way that any other momentum oscillator is used. The trader has to be careful of some things when using it. YOU ARE TO UNDERSTAND the CONTEXT of the MARKET. Read "Martin Pring on Market Momentum" as introduction.
In a strong bull market, any momentum oscillator used in the stupid way is going to tell you that the market is overbought and you should sell it. Ignore these signals! Instead, when the market is strongly trending, UMindicator can be used to detect when sharp pullbacks are ending, providing entry opportunities.
I simply suggested to develop trading strategy... If smb still want to do it ... you are welcomed))
In a strong bull market, any momentum oscillator used in the stupid way is going to tell you that the market is overbought and you should sell it. Ignore these signals! Instead, when the market is strongly trending, UMindicator can be used to detect when sharp pullbacks are ending, providing entry opportunities.
I simply suggested to develop trading strategy... If smb still want to do it ... you are welcomed))