I was perplexed by the lack of continuation signals in trends, so I spent some time looking for a suitable indicator just for that purpose and fast indicators that can provide continuation signals tend to be too noisy as well.
I'm always intrigued by QQE (Qualitative Quantitative Estimation), so I QQE-ed almost everything I encountered.
After a while, I settled on Didi Index and enhanced it by adding an additional signal line calculated from QQE trailing line. The QQE trailing line provides additional cross overs for the short/fast Didi line, specially created for the NNFX continuation signals in the same direction.
The QQE trailing line acts as zero cross, providing an additional filter for ranging periods.
There's a few ways of identifying the cross overs:
Didi cross overs signals are highlighted with shapes at the top.
Didi long signal when fast and slow Didi crosses above zero
Didi short signal when fast and slow Didi crosses below zero
Continuation signals are highlighted with shapes at the bottom.
Continuation long signal when Didi fast line cross over QQE trailing line
Continuation short signal when Didi fast line cross under QQE trailing line
Example of continuation trades
Example of filtering bad signals from your baseline, confirmation or continuation signals.
Credits to Glaz and Shizaru for their QQE code.
版本注释
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The original use of this indicator is to look for both lines separating from the zero line for a strong confirmation. If you plot 3, 8, 20 MA on the price, the stronger moves are when all 3 lines open up, 3 moves away from 8, 8 moves away from 20.
I'm offering an alternative use of this versatile indicator.
Adding more instructions on using this improved Didi Index indicator.
3 Main Lines
Original Fast Didi in Green (Curta / Short)
Original Slow Didi in Red (Longa / Long)
QQE Trailing line using + crosses, green for long direction, red for short direction
Enhanced the shapes to indicate strong and weak signals
Recap
Didi cross overs signals are highlighted with shapes at the top
Didi long signal when fast and slow Didi crosses above zero in triangle up
Didi short signal when fast and slow Didi crosses below zero in triangle down
False signals in X crosses, green for long, red for short
Continuation signals are highlighted with shapes at the bottom.
Continuation long signal when Didi fast line cross over QQE trailing line in triangle up
Continuation short signal when Didi fast line cross under QQE trailing line in triangle down
Counter trend signals against the direction in X crosses, green for long, red for short
Looks very promising! I'll be doing some testing of this later. Could you explain the meanings of each of the symbols? (As in the triangles and Xs)
jiehonglim
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@JJosuke, Take a look at the recent release notes. I added the description of identifying cross overs.
MiyagiRy0ta
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@jiehonglim, Sorry I have one more request if you don't mind, could you allow for the background colour to be editable? Just makes some it easier to see with contrasting colours.
Thank you!
jiehonglim
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@JJosuke, Isn't the color editable by default from TV ?
MiyagiRy0ta
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@jiehonglim, Sorry I meant the indicator window background
marcjard
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@JJosuke,
vedantani
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You have mentioned "The QQE trailing line acts as zero cross, providing an additional filter for ranging periods." - I couldn't understand this.
Also if you can give more clarity on the image "Example of filtering bad signals from your baseline, confirmation or continuation signals." - how are you filtering bad signals
Great indicator btw and thanks for this
Muzaaa
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Hi! i got to this one now. Very good! :)
I see you use here different BS with kijun. Do you have it available to share please?
And what would be the comparision in results if you ever compared using kijun BS, BS script TEMA close and BS from trend follower (Modular) ?
THX a lot!
luiscfcorreia
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Thanks for these improvements! I follow Odir Aguiar since 06, something which has to be added is the DMI indicator with the ADX line. According to him DMI is on top of his trading system, he uses DMI for 8 periods. It indicates whether or not we have a trend and its strength is measured by the ADX line. There is only two moments in which we don't have a trend: A) ADX line is falling and it is bellow 32 B) ADX is moving under DI- and DI+
In all other moments we have a trend, and it indicated by who is on top DI- or DI+