Guth_3X_Confirm
This indicator has three built in indicators based on the SMA of HIGH, SMA of LOW, and Stochastic. The baseline indicator is the retreats after departures from SMA of HIGH and LOW.
The first time a HIGH that is above the SMA HIGH has a lower HIGH but it still above the SMA HIGH, a (-) will appear at the bottom. This signals an aggressive entry point for potential coming downtrend. The second time the HIGH produces a lower high but is still above the SMA HIGH, a (S) will appear at the bottom which signals a more conservative entry point for potential coming downtrend. All of the opposite information is true of reversals beyond the SMA LOW.
When these reversals appear the same time the Stochastic is overbought or oversold, a red bar (overbought and potentially coming down) or a green bar (oversold and potentially coming up) will appear. NOTE: Aggressive symbols occur more often and will always occur when a conservative symbol appears. When a conservative indicator and respective overbought/oversold level occur at the same time, the bar is darker in color.
You can enter positions at any one of the indicators, however, the darker bars are what I look for. This has a high success rate but cannot guarantee results every time. I recommend adjusting the SMA, and Stoch parameters as well as time periods. I have had success with this indicator while day trading the 5, 10, 15, 30, 65 minute periods as well as daily and weekly periods. Every symbol traded can provide differing results based on the parameters used.
Please feel free to leave feedback and I know this can work well for you!
The first time a HIGH that is above the SMA HIGH has a lower HIGH but it still above the SMA HIGH, a (-) will appear at the bottom. This signals an aggressive entry point for potential coming downtrend. The second time the HIGH produces a lower high but is still above the SMA HIGH, a (S) will appear at the bottom which signals a more conservative entry point for potential coming downtrend. All of the opposite information is true of reversals beyond the SMA LOW.
When these reversals appear the same time the Stochastic is overbought or oversold, a red bar (overbought and potentially coming down) or a green bar (oversold and potentially coming up) will appear. NOTE: Aggressive symbols occur more often and will always occur when a conservative symbol appears. When a conservative indicator and respective overbought/oversold level occur at the same time, the bar is darker in color.
You can enter positions at any one of the indicators, however, the darker bars are what I look for. This has a high success rate but cannot guarantee results every time. I recommend adjusting the SMA, and Stoch parameters as well as time periods. I have had success with this indicator while day trading the 5, 10, 15, 30, 65 minute periods as well as daily and weekly periods. Every symbol traded can provide differing results based on the parameters used.
Please feel free to leave feedback and I know this can work well for you!
All forecasts are based on analysis of past behavior. Prior movements are not always indicative of future movement. Develop the theory, test the theory. Do your own research. Nothing in this analysis constitutes advice. YouTube For More. Good luck!!
//Created by Chris Guthrie on September 14, 2016 //Combines my Range_Outlier_Action indicator with Stoch Overbought/Oversold Levels. A Solid Bar appears when both indicators hit. Red=Sell, Green=Buy study(title="Stoch+CGOutlier_3x_Confirm", shorttitle="Stoch_Out_Triple_Confirm") length = input(14, minval=1), smoothK = input(4, minval=1), smoothD = input(9, minval=1) lenH = input(13, minval=1, title="Simple Moving Average High") srcH = input(high, title="SMA-HIGH") smaHI = sma(srcH, lenH) lenL = input(13, minval=1, title="Simple Moving Average Low") srcL = input(low, title="SMA-LOW") smaLO = sma(srcL, lenL) k = sma(stoch(close, high, low, length), smoothK) d = sma(k, smoothD) plot(k, color=lime, linewidth=2) plot(d, color=red, linewidth=2) h0 = hline(75, color=white, linestyle=solid, linewidth=1) h1 = hline(25, color=white, linestyle=solid, linewidth=1) fill(h0, h1, color=silver, transp=75) bsl = input(true, title="Display Buy-Sell Letters For Conservative Reversal") agg = input(true, title="Display Plus-Minus Symbols For Aggressive Reversal") abvLine = k > 75 and d > 75 ? 1 : 0 belLine = k < 25 and d < 25 ? 1 : 0 xUp = k > d ? 1 : 0 xDown = k < d ? 1 : 0 //Aggressive Trend Entry entryADT = smaHI < high and smaHI < high[1] and high < high[1] entryAUT = low < smaLO and low[1] < smaLO and low > low[1] //Conservative Trend Entry entryCDT = smaHI < high and smaHI < high [1] and high < high[1] and high < high [2] entryCUT = low < smaLO and low[1] < smaLO and low > low[1] and low > low[2] //Symbology For Conservative Reversal: Above smaHI(S), Below smaLO(B) plotchar(bsl and entryCDT ? entryCDT : na, title="Conservative Down Trend Entry", offset=0, char='S', location=location.absolute, color=yellow, transp=0) plotchar(bsl and entryCUT ? entryCUT : na, title="Conservative Up Trend Entry", offset=0, char='B', location=location.absolute, color=white, transp=0) plotchar(agg and entryADT ? entryADT : na, title="Aggressive Down Trend Entry", offset=0, char='-', location=location.bottom, color=yellow, transp=0) plotchar(agg and entryAUT ? entryAUT : na, title="Aggressive Up Trend Entry", offset=0, char='+', location=location.bottom, color=white, transp=0) //Indicator when both indicators fire at same time bgcolor(abvLine and xDown and entryCDT ? red : na, transp=70) bgcolor(belLine and xUp and entryCUT ? lime : na, transp=70) bgcolor(abvLine and xDown and entryADT ? red : na, transp=70) bgcolor(belLine and xUp and entryAUT ? lime : na, transp=70)