The original indicator had quite a number of coding bugs, which I had not addressed, when I fixed the other problems. I have now tried to remove them all. Also I have normalized the indicator to work with FOREX.
Problem is that the indicator was poorly translated from MetaTrader to NinjaTrader. I do not know, whether the new version is still comparable to the original MetaTrader indicator.
Just found the source for the MetaTrader indicator:
This indicator is not so bad. If you slightly reduce the period you get a nice trendfilter & volatilitymeter.
I did not like the histogram, so I played around a little and have further modified the indicator. It is now normalized and shaded. The color of the shading gives you a bullish or bearish indication. The absolute value of the indicator is an indicator of volatility.
You want to enter a long position, when volatility is rising and the trendfilter is green. You want to enter a short position when volatiltiy is rising and the trendfilter is red.
The concept can be improved by measuring the relative momentum of the up and down drives.
I called this indicator SuperDrive, as it is now quite different from the original indicator.
Guess I will make some more changes, suggestions welcome.
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Poocher i have often thought exactly the same thing, however when i read the code listed on some of these indicators i would have to undergo a new learning curve and at my age probably not high on my list of priorities. good thought though.
Fat tails thank you for your support it is much appreicated and if it works i owe you one, i will check the indicator when i get home from work probably close to US market open and let you know if works ok. thanks a million for your assistance.
This indicator is simply based on the average range and the momentum over a lookback period. The two lines stand for the average range + a 1-bar momentum component and the average range - a 1-bar momentum component. Then it is smoothed with the T3 indicator.
I have recoded it now based on
- an arithmetic average of the true range (instead of the range)
- an enhanced momentum indicator
- the HMA, which replaces the T3
This is not so much different from the original concept, but just a slight improvement. Next step would be the normalization of the indicator. This allows to introduce a volatility threshold. If volatility is below - no trading.
Last edited by Fat Tails; January 10th, 2011 at 06:21 AM.
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