Slickwater Strategy [frac]

This indicator is the culmination of various other indicators and attempts to help traders assess the actual current trend and filter out all the noise.

In reality, this indicator is extremely similar to the Traders Dynamic Index in concept and the overall results of the indicator across any time frame. The differences though are that while TDI uses just RSI, this uses RSI, CCI, MFI, and TSI, and also includes an assessment of the momentum associated with the move, to better enable traders to detect divergence.

The default settings generate the best returns across any time frame, however can be ultra sensitive and generate too many trade signals on high resolution time frames (i.e., the 15M or 30M). If one desires less sensitive results, one can use (14,12,9) for the first 3 inputs. This generates consistent signals, but is not as sensitive as the default.

In general:

GO LONG:
- Scalp: Wt1 crosses over Wt2
- Short Term: Wt1 crosses over Wt2 and the middle band. Wt2 is above the middle band as well
- Medium Term: Same as short term, but there are extended oversold trading signals (yellow dots)
- Long term: Same as medium term, but there is divergence in the momentum as well (i.e. it is increasing while price decreases)

GO SHORT:
- Scalp: Wt1 crosses under Wt2
- Short Term: Wt1 crosses under Wt2 and the middle band. Wt2 is below the middle band as well.
- Medium Term: Same as short term, but there are extended overbought trading signals (yellow dots)
- Long term: Same as medium term, but there is divergence in the momentum as well (i.e., it is decreasing while price increases)