Pragmatic risk management

The indicator is calculating multiple moving averages on the value of price change %. It then combines the normalized (via arctan function) values into a single normalized value (via simple average).
The total error from the center of gravity and the angle in which the error is accumulating represented by 4 waves:

BLUE = Good for chance for price to go up
GREEN = Good chance for price to continue going up
ORANGE = Good chance for price to go down
RED = Good chance for price to continue going down

A full cycle of ORANGE\RED\BLUE\GREEN colors will ideally lead to the exact same cycle, if not, try to understand why.

This indicator is calculating large time-windows so It can be heavy on your device. Tested on PC browser only.

My visual setup:
1. Add two indicators on-top of each other and merge their scales (It will help out later).
2. Zoom out price chart to see the maximum possible data.
3. Set different colors for both indicators for simple visual seperation.
4. Choose 2 different values, one as high as possible and one as low as possible.
(Possible - the indicator remains effective at distinguishing the cycle).

Manual calibration:
0. Select a fixed chart resolution (2H resolution minimum recommended).
1. Change the "mul2" parameter in ranges between 4-15 .
2. Observe the "Turning points" of price movement. (Typically when RED\GREEN are about to switch.)
2. Perform a segmentation of time slices and find cycles. No need to be exact!
3. Draw a square on price movement at place and color as the dominant wave currently inside the indicator.

This procedure should lead to a full price segmentation with easier anchoring.
릴리즈 노트: Change bar color based on most dominant wave.
오픈 소스 스크립트

진정한 TradingView의 정신에 따라, 이 스크립트의 작성자는 스크립트를 오픈소스로 게시했기에 거래자들이 이해하고 확인할 수 있습니다. 작가님께 건배! 스크립트를 무료로 사용할 수 있지만, 게시물에서 이 코드를 재사용하는 것은 하우스룰을 따릅니다. 당신은 스크립트를 차트에 사용하기 위해 그것을 즐겨찾기 할 수 있습니다.

차트에 이 스크립트를 사용하시겠습니까?


This is an excellent indicator. It’s working well in conjunction with my other indicators to improve my trading. Thank you for your work!
200 코인
+1 응답
Spectrum101 simon.tys
@simon.tys, Thank you!
it's not Very successful i'm afraid but worth a try
+4 응답
impressive ! OP
+2 응답
Also just wondering if higher value amounts of the red, blue, green and orange have higher weighting than other colours?

For example, if orange values showed started becoming higher than the green should I look at a reversal of price?

+1 응답
Spectrum101 simon.tys
@simon.tys, Hi Simon. The colors are evenly weighted. Orange is the color that is between Green and Red. Blue is the color that is between Red and Greed. Therefore, your assumption is correct. Notice however that Orange can become Green or Red, sometimes its 50:50 and somethings not.