I wanted to explore for a moment the use of a proxy in place of price.
The general idea is that in some situations, you may find better results when using a proxy of price, instead of price itself. I am not saying that I subscribe to this theory, I am just trying to present some information as I see it on the subject.
An example of a price proxy is using a moving average like SMA, HoltEMA, or JurikMA, etc etc in place of price. This price proxy is then used to calculate your other indicators, like oscillators, histograms, or even other moving averages. The price proxy is used in place of price itself.
NinjaTrader makes this very simple. For the input series, you can select your price proxy instead of the primary price dataseries.
Traditional CCI built on price (panel 2), and a CCI built on a price proxy of HoltEMA (panel 3). The Holt is built on a period of 10.
Traditional RSI built on price (panel 2), and a RSI built on a price proxy of HoltEMA (panel 3). The Holt is built on a period of 10.
Traditional MACD built on price (panel 2), and a MACD built on a price proxy of HoltEMA (panel 3). The Holt is built on a period of 10.
Momentum built on price vs Momentum built on HoltEMA:
ParabolicSAR built on price (orange) vs built on HoltEMA (green):
ADXVMA built on price:
ADXVMA built on HoltEMA:
I don't have much experience using a price proxy. For those that do, please share your ideas and the reasons for using them.