Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
I made an indicator ppl might like, I call it Trend Tracker
Yeah I know. Maybe I'll make a screenshot(s) soon. But you can imagine what it is because I said it's a channel concept like B.Bands. Even if I posted a screenshot, everyone will still have to run it and look at it for themself over many days of data to determine if they like it.
Some more thoughts about the indicator:
I think it's the best indicator of all time ever. I think B. Bands is #2, but not nearly as good as Trend Tracker. Trend Tracker uses a simple radar tracking algorithm, whereas BB uses the average deviation algorithm (actually standard deviation). So when the market gets volatile (high amplitude), BB's prediction of the next swing level will be too near to the market, but TT will appropriately wait a little bit longer for the market to reach it... for example, when the market makes 3 swings in a row, then takes off trending right after that third swing, BB will usually reach all three of those swings, whereas TT won't reach the first two swings and it'll only reach the third swing because it's a better algorithm for predicting the market. (The radar tracking algorithm is a universal concept that applies to any data in the universe, such as sun cycles, weather, etc.)
I think BB would be better using an average deviation instead of standard deviation, but the creator probably wanted it to react more to volatility. But the TT's radar algorithm reacts to volatility better without all the wonky side effects of squaring the deviations.
TT looks kind of lame when you first look at it, because it seems like the sides of the channel are kind of near to the market... but that's what you want in an indicator because it means the probability of reaching the side is very high... it means it's working. And alot of people will probably dismiss the indicator as not being useful because they'll see the market passes the side alot (goes out of range of the channel), and they'll think that they want it to show the bigger swings... but it DOES show the bigger swings -- you just have to look at a larger scale chart when it goes out of range. But most people want to see ALL scales on one single chart -- even though that's not possible. IOW most people don't understand how to use scales. Everything is best used with multiple scales, including TT. It's not as easy/convenient to have to look at another chart(s), but it's what you have to do. The large screens nowadays make it easier to have 3-4+ charts on the screen at the same time so you don't have to click that much.
The people that use averages or EMAs, should switch to TT because EMAs only show you the middle of the channel, whereas TT also shows you the sides of the channel, which is where the swings are, which is where the exits (and reverse entrances) and trail stops are. The middle is good to know, it's basically when the trend momentum has got going, but it's nice to see the sides too.
I know everyone is burnt out on indicators. Myself included. I don't like ANY commonly known indicators. TT is IMO the first indicator that is actually useful (other than BB being semi-useful).
BTW, I'm planning to update the indicator, probably within the next month or so (I'm busy with other things at the moment). Instead of doing the EMA-type calculation, I'm just going to WAIT for the swing to complete, and then move the indicator, so it'll be more exact. It's fine as it is right now, but this new calculation is probably ~10% better (more accurate), so that's significant. Plus, I'm planning to update the "how to" text as well. And I might even throw in some signals code -- I use two signals and I coded them so the code might save people the mental work of looking for the signals manually (instead let the computer do the menial work).
I used to want to be more secretive about my proprietary system/techniques, but I changed my mind about that because basically I realized life is short, and it's nice to share things with others & help people.
Thanks for the feedback. It makes me happy to make something that people like. Yeah, I really want to tell you more about how to use it best ... honestly I'm just busy right now with a charity project, and I'm prioritizing that since it's important. But it's on my list to do a better explanation of how to use this indicator. (As well as the code upgrade.) Yeah, I know most people use NinjaTrader so I'm not really able to share it with them right now ... I only wrote it in MultiChart's EasyLanguage for now. But yeah, if anyone wants to convert it ... it's not really alot of code, so it should be easy. I do know how to write in ninja script, but just don't have the time yarrrr.
Just FYI, I substantially updated the text of how to use Trend Tracker, so the instructions are alot clearer & more complete now. The code is still the same though (I didn't update that yet) but I did make some very minor negligible changes (but the algorithm is still the same). I also posted a screenshot too.
Yeah, I'm aware of that. 1.618 is expanding, but .618 is the ratio when contracting. For example, starting with the number 2, 2 X 1.618 = 3.236. But 2 divided by 3.236 = .618, or starting with 3.236, you multiply by .618 to get 2.
