Machine Learning : Dominant Cycle Elastic Volume KNN

2023년 6월 13일

About the Script

Dominant Cycle Elastic Volume KNN ,
is a non-parametric algorithm, which means that, initially it makes no assumptions about the underlying distribution of the time-series price as well as volume.
This approach gives it flexibility so that it can be used on a wide variety of securities at variety of timeframes.(even on lower timeframes such as seconds)

The main purpose of this indicator is to predict the trend of the underlying, by converging price, volume and dominant cycle as dimensions and generate signals of action.

Key terms :

Dominant cycle is a time cycle that has a greater influence on the overall behaviour of a system than other cycles.
The system uses Ehlers method to calculate Dominant Cycle/ Period.
Dominant cycle is used to determine the influencing period for the underlying.
Once the dominant cycle/ period is identified, it is treated as a dynamic length for considering further calculations

Elastic Volume MA is a volume based moving average which is generally used to converge the volume with price, the dominant period is used here as the length parameter

KNN K-Nearest Neighbour is one of the simplest Machine Learning algorithms based on Supervised Learning technique.
K-NN algorithm assumes the similarity between the new case/data and available cases and put the new case into the category that is most similar to the available categories.
K-NN algorithm stores all the available data and classifies a new data point based on the similarity. This means when new data appears then it can be easily classified into a well suite category by using K- NN algorithm. K-NN algorithm can be used for Regression as well as for Classification but mostly it is used for the Classification problems.

So, K-NN is used here to classify the trend of the Dominant Cycle Elastic Volume, and Generate Signals on top of it


How to Use the Indicator ?

The Buy Signal Candle


The Sell Signal Candle


The Buy Setup


The Sell Setup


Stop and Reverse Structure



What Timeframes and Symbols can this indicator be used on ?
The above indicator can be used on any liquid security which has volume information intact with ticker
and it can be used on any timeframe, but the best timeframes are [ 5min, 15min, 30min, 1hr ]
The indicator can also be used as a trend confirmatory indicators on lower time frames, like 30second


The Script has provision for alerts
Two alerts are there :
Alert 1= "LONG CONDITION : DCEV-ML"
Alert 2= "SHORT CONDITION : DCEV-ML"


How to request for access ?
Simply private message me !

2023년 6월 13일

릴리즈 노트

Regarding Timeframes
Best timeframe for usage is 15min,
but it can also be used for 30sec, 1min, 2min as a confirmatory indicator
on higher timeframes this can be used for 30min, 1hour, 3hour, daily and weekly