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Update(2): KR_Trender_v5 5 *
updated .ts file to reflect correct version # and add a quick change log.. no code changes. thanks to Hguru for the feedback...
Another update from previously posted KR_Trender_v4 for ToS. Inspired by some research around the 9/30 method, i needed something to show me the fast price move on the short-term compared to the prevailing longer-term trend to better identify entry points. initially i used Slow/Fast Stoch & Stoch Momentum but wasn't convinced. I went ahead and added a Fast_Momentum to KR_Trender.

for me, this is a 3 in 1. The concpet behind the calc of Fast_Mom and Trender lines is close to MACD (but more elaborate as we look at 3 EMA's not 2 - and Trender is bounded -100 to 100, where MACD isn't). then we have a representation of fast momentum (save the space of my SMI), and we have the "full trend flag" indicator when the price AND all the 3 EMA's align in a full trend formation.

on the top screen, i show the actual 3xEMA setup i used to originally develop the concept of KR_Trender, the shading is based on a BB, but has nothing to do with Trender, but it changes color based on the Trend state (Full up, Full Down, or in-Transition).

- Fast_Mom is calculated as score of the fast EMA vs it's own Hi/Low Channel. this is the same concept used by Stoch & Stoch Momentum, but then it's scaled to same scale as the main trend line - enabling mathematically comparing the 2 as rate of change of price taken from 2 diferent views.
- a crossing between Fast_Mom and Trender means the rate of price change on the short term has started to exceed, slow, or change direction from the longer-term rate of change. A crossing of zero means the shorter-term trend is reversing. if that's strong enough of a move, the longer trend will follow.
- once you get to use it, you will see the 2 lines sort of pull each other. retraces and pullbacks that provide good position entry points are much clearer as identified by the Fast_Mom line (that was my main issue)
- i kept PPS (Person's) indicator on top chart - Fast_Mom compares very well against PPS signals. many times beats it to indicate a change up or down. so that made me happy.

Other improvements:
- can show/hide Fast_Momentum plot
- can change length of Long_term Trend period. if equal to or below the main length, it will be ignored.
- Adjusted smoothing calc to only use EMA smoothing, as HMA causes an issue with chart labels in ToS
- Fast_Price_weight now 0 by default to allow focus on long-term trend and Fast_Momentum.
- Fast EMA is always taken as half of the main length

suggested Length/Long_Trend settings: 10/20 or 8/16 for intraday and 20/40 or 20/50 for longer term. Should not use Length lower than 4.

i used KR_Trender on a 5min chart as well as on daily/week . initial results are positive and tested well in live trading.

feel free to use, comment and feedback, and please keep only within BMT.

RedK


Category The Elite Circle 
 
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Details: Update(2): KR_Trender_v5
Category: The Elite Circle 


August 31st, 2012
Size: 5.03 KB


Keywords: kr_trender momentum redk thinkorswim tos trend
Comments/ratings
5 * Hguru September 1st, 2012 06:03 PM
No Comment
5 * Hguru September 1st, 2012 06:48 PM
KR,

This looks very interesting. I just downloaded it and the heading says V5 but inthe study it says V4 is this correct. I trade futures Crude/CL and Dow/YM have you tested it yet on futures and also is there a better time period that this study tends to look and work consistently better at. I tend to look at the tick charts and 1, 5 and 15 minute charts so just wondering what to expect and what type of settings to have and also how do i get the top study as well.

Thanks

Hguru
5 * Cloudy September 2nd, 2012 01:55 AM
Good going RedK, thanks!
5 * kareem40 September 3rd, 2012 01:02 PM
thanks for all your work. Well done.
4 * Herbert September 9th, 2012 03:05 AM
Thank you for a well don Work
5 * WattMan December 29th, 2016 01:08 PM
Thanks for this looks promising as I use the default Stoch strategy within ToS in my current approach that I am trying to sharpen. Your indicator does add value. As I was trying to get a strategy version implemented, I wanted to know your thoughts on how you would define entry/exit points on this indicator? You mentioned you use this on 5min charts, I typically use 2h charts - while my strategy along with the default Stoch looks promising, your indicator is eluding me... Feel free to PM me if you want to take this offline...


 
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