CARNAC Magic DCA

1월 4일

The "CARNAC Magic DCA" indicator is designed for investors looking for the best opportunities for Dollar-Cost Averaging (DCA).

How it works:

The Carnac Dynamic DCA Threshold calculates a dynamic threshold for DCA entries using Exponential Moving Average (EMA), Average True Range (ATR), and the maximum distance from the EMA over a full lookback period, aiding in identifying optimal buy opportunities. It also only signals a DCA buying opportunity after a bearish candle, which helps lower the average DCA price.

Configurable Inputs:

• EMA Start Length: Sets the initial length for the series of EMAs, affecting their sensitivity to price changes.
  
• ATR Length: Determines the period for the ATR calculation, influencing the dynamic DCA threshold's responsiveness to market volatility.
  
• ATR Multiplier: Modifies the impact of the ATR on the DCA threshold, allowing for finer control over the threshold's sensitivity to volatility.
  
• Start Calculation From: Enables setting a specific start date for calculations, tailoring the analysis to a particular trading period.
  
• DCA Buy Signal Alert: Generates an alert when the price is below both the dynamic DCA threshold and the opening price, indicating a potential buy signal based on DCA strategy.
  

Ten EMAs: Carnac Magic DCA includes a ten EMA plot, which decrease in length from the user-defined starting length, offering a multi-layered trend analysis.

EMA Color Coding: The sequential arrangement of EMAs is visually represented through color coding, facilitating quick trend recognition.

Average Buy Price Analysis: Calculates and displays the average buy price and its percentage difference from the average closing price since the user-defined start date, helping assess the strategy’s effectiveness compared to traditional DCA methods (purchasing at the close of every candle).

Visual Indicators and Labels: Includes visual alerts for buy signals and informative labels showing average buy prices and related statistics.