[blackcat] L2 Improved Jeffrey Owen Cyclical System

2021년 6월 27일

Level: 2

Background

In Jeffrey Owen Katz's article "Trading stocks with a cyclical system" he introduces the Stock Rhythm System. I found the central part is quite similar to KDJ indicator and I use my own KDJ algo to enhance its performance.


Function

Jeffrey Owen Katz has a customized stochastic indicator. I used it as the engine of my own KDJ trading system. My KDJ oscillator display consists of 3 lines (K, D and J - hence the name of the display) and 2 levels. K and D are the same lines you see when using the stochastic oscillator. The J line in turn represents the deviation of the D value from the K value. The convergence of these lines indicates new trading opportunities. Just like the Stochastic Oscillator, oversold and overbought levels correspond to the times when the trend is likely to reverse. Just as the Stochastic, the KDJ has the K & D lines, plus the J. This last one represents the divergence from the K-line. When all three converge, it usually signals a possible trend forming. Labels and alerts are added for long and short entries.


Key Signal

KVal --> K.
DVal --> D.
JVal --> J.

Remarks

This is a Level 2 free and open source indicator.

Feedbacks are appreciated.

릴리즈 노트

[B]OVERVIEW[/B]

This advanced technical analysis indicator implements an enhanced version of Jeffrey Owen's cyclical system specifically adapted for Level 2 market data trading strategies. The script combines custom-stochastic calculations with unique entry-exit rules designed to capture optimal trade opportunities 📈📊.

The system employs multiple timeframes and dynamic filtering mechanisms to reduce false signals and improve overall reliability 🔍📉. It includes real-time alert notifications for both long and short positions, ensuring traders don't miss critical market movements ⏰🔔.

Key Features:
• Advanced stochastic oscillator implementation 🎯
• Multi-bar confirmation filters for increased accuracy ✅
• Real-time position labels on chart display 📝
• Comprehensive horizontal reference lines for visual guidance 💻
• Robust alert conditions for timely trade execution 🚀

HOW TO USE[/B]

Setup Parameters:
• Adjust K Periods, D Periods, and K Slow values based on preferred timeframe sensitivity
• Set Exit Bars according to your risk management strategy

Entry Analysis:
• Monitor crossover points between J value and recent historical levels
• Look for lowest J values confirmation combined with price action context

Risk Management:
• Utilize built-in alerts to track potential entries without constant screen monitoring
• Consider additional indicators for confirmation before executing trades

LIMITATIONS[/B]

⚠️ Please note that while this indicator has been optimized for performance, it should be used in conjunction with fundamental analysis and proper money management principles. No single indicator guarantees successful trading outcomes.

NOTES[/B]

This script was created by blackcat1402 under the Mozilla Public License 2.0 framework. For detailed documentation and updates, please refer to the original repository sources.