The indicator is based on the RSI and the Absolute Strength Histogram (more specifically the modification by Jie).
It is meant to be used to filter out periods of consolidation, and determine if the bulls or bears are in control when there is enough action to possibly start a trend.
The RSI is not used to find overbought or oversold conditions, but to find momentum and filter out sideways movement.
The ASH is used to filter out sideways movement by looking at the difference between the bulls and the bears and when the difference is below either the bulls or the bears, the market is considered to be consolidating. Otherwise, direction for possible trends are determined by which line is above the other.
Blue background = Bulls are in control of the ACTION Orange background = Bears are in control of the ACTION Gray background = No ACTION - DO NOT TRADE
Catatan Rilis
⋅
Version 1.1 - Added bypass options for the RSI, the ASH and the F**k U Candle ATR filter. - The upper and lower thresholds for the RSI work for quantized RSI values now as well.
Catatan Rilis
⋅
- Version 1.2 -
Added Signal Reliability Filter.
If turned on, it detects a max amount of signal changes in a lookback period to see if we can continue to rely on the signals. If more signal changes happen than we allow, it turns the color transparent, to warn about weak signals being produced. One could choose to either stay away from trading until the color turns solid again, or trade at half the risk.
Changed ASH to bypassed by default as the main thing is the RSI anyway.
Changed default settings to Quantized values for the RSI and Heikin Ashi as input, as well as the period to use for the RSI to 5. It has proven more reliable.
Catatan Rilis
⋅
Version 1.3
Fixed a bug that made bypassing the RSI impossible.
idk if im trippin but this repaints like a mf, like not even demo or live testing, just backtesting on replay.
lejmer
⋅
@giemzju, What you're seeing is normal in replay. If you do stepwise replay you'll see why it happens. TradingView shows two states for each candle. All indicators repaint on candles that are still not closed. You'll see the same behaviour for every indicator out there. The reason it's more obvious here is probably because this indicator only has 5 possible values, so it's easier for this indicator to "change its mind" within the time frame of a current candle, and therefore it is more prone to change when TradingView goes from the first candle state into the second candle state during replay.
lejmer
⋅
In other words, it's not actually repainting. If you only ever base decisions off of closed candles, you'll never have to worry about repainting for this indicator.
aNuFFi
⋅
Loving the look at this - Need to possible run some back-testing on it.
Question: Any optimal settings you've found?
lejmer
⋅
@aNuFFi, Glad it sparked some interest! Depends on the rest of your strategy and what purpose it is supposed to play in it. For my own algorithm, the settings used as default work best. There may be even better settings to use but I haven't found them yet.
obinex7g
⋅
you built a monster! thanks soo much! best used on a 12hr time frame.. love this!
lejmer
⋅
@obinex7g, Glad you found it useful! It helps me a lot so I thought I'd share it.
stanketa
⋅
@lejmer, works perfectly with vortex and smart money indicators on 1hr candle. I always like using more indicators to confirm the right moves😀