The Leavitt Convolution indicator was created by Jay Leavitt (Stocks and Commodities Oct 2019, page 11), who is most well known for creating the Volume-Weighted Average Price indicator. This indicator is very similar to my Leavitt Projection script and I forgot to mention that both of these indicators are actually predictive moving averages. The Leavitt Convolution indicator doubles down on this idea by creating a prediction of the Leavitt Projection which is another prediction for the next bar. Obviously this means that it isn't always correct in its predictions but it does a very good job at predicting big trend changes before they happen. The recommended strategy for how to trade with these indicators is to plot a fast version and a slow version and go long when the fast version crosses over the slow version or to go short when the fast version crosses under the slow version. I have color coded the lines to turn light green for a normal buy signal or dark green for a strong buy signal and light red for a normal sell signal, and dark red for a strong sell signal.
This is another indicator in a series that I'm publishing to fulfill a special request from @ashok1961 so let me know if you ever have any special requests for me.
@cheatcountry thank you for a great indicator, Q: what other indicators would you recommend to use with this to be able to identify possible fake-outs so there won't be entry there? Any more tips on howto use it would be appreciated. Thanks
NetoDav
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Great indicator. There is an error with the slow line, whenever you change its color and then change another setting the line goes back to the original white color and does not respect the change I did. I hope it can be changed. Thanks
cheatcountry
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@NetoDav, This is most likely because the slow line uses the new chart.fg_color variable which makes the color adaptive to what is on the chart. The idea is to make sure that the line is best visible for all conditions. Can you send me a pm describing what you are doing so I can replicate and confirm this bug?
NetoDav
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@cheatcountry, Hi. the slow line is at 30 and the color is light blue, but when I change the period length either on the fast or the slow average line, the color is reverted back to the original color (white)that you coded the indicator. I hope this helps. The indicator rocks