recently I've stumbled on following post Linear Regression Angle Measurement by Doug Tucker. It looked nice and I wanted to give it a try creating such indicator.
To keep it simple, indicator can indicate when to topup your position in a trend even if it's not so obvious where to do it.
Joking arround with parameters it also can give you a confirmation on a divergence if you trade them.
I've tried this indicator on Range charts using FX instruments.
On the first image you can see how nice have been identified places where to add to an existing position, or even enter market if not done so already.
On the second one we have "clear" trend change identification much before LinReg(60) stated so. You can see it on a 3rd image in "zoomed-out" mode that trend changes are easily spotted.
On the last one you can see example of trading divergences.
Please note that only, if compiled in Debug mode (see NT help for more info) you will see red and blue lines in indicator section. otherwise you will see histogram only.
What do you think about it? Somebody finds this useful?
The following 14 users say Thank You to ivanjocic for this post:
you're welcome. To be honest it wasn't intended to be used in synch with Buy/Sell zones. I've noticed, though, that when the main line (black) of this indicator is crossing over/below the 0 line usually we have change of color in buy/sell zones (or neutral or opposite).
Basically calculation methods very different, but one is confirming other most of the time.
I haven't had much time to investigate both of them. I was hoping a little help of the community.
If you compile in debug mode (open any indicator, right-click and select "Debug Mode" then hit F5), two lines will be added (red and blue).
I draw the value of angle between 2 successive points of LinReg (blue for long and red for short period). You can note that when in the price panel LinReg is about to go down, in panel 2 we have blue line that crosses below 0. So this "angle representation" line is much faster than the original one.
Indicator is drawn by summing values of blue (long LinReg angle representation) and red (short LinReg angle representation).
I hope that I was clear enough, if not you just need to ask.
The following user says Thank You to ivanjocic for this post:
thanks. i didn't know you had to be in the debug mode to compile. so now i have the red & blue lines. as you can tell i have 0 coding knowledge!
I had great results (in /Sim) this am trading the ES on my 4 Kase chart and just using your default settings, i don't want to start making changes / tweaking just yet. i am using the MEF w/ OBV Driver, VHF, along w some other indicators that when taken together seem to keep me from taking the bad MEF signals and thus yielded good results.
have you thought of painting a vertical line on panel 1 chart when the R/b lines cross? Red vertical line red line crosses down through the blue line green or blue when red line crosses up through the blue line.