Fishing The TrendFishing The Trend
HOW Does it work ? The code uses dynamic levels to identify trend.
This script used SuperTrend (ST), ATR and relatively Smoothened ST for early trend reversal detection to determine the trend and direction so that a fruitful decision can be made.
To Indicate the strength of the trendline, The standard calculations of SuperTrend, along with multiple smoothen ATR results are clubbed determine the direction, a step ahead.
However, the indicator is not appropriate for all the situations. It works when the market is trending. Hence it is best to use for short-term technical analysis . SuperTrend uses only the two parameters of ATR and multiplier which are not sufficient under certain conditions to predict the accurate direction of the market. Here in this indicator ATR value is not editable and after long backtests the best ATR value is kept that helps the indicator working very well.
The default setting is best for use, but user can customize the Multiplier for his own fine tunings, So once the Levels are matched, a Long / Short suggestion is plotted.
Best Time Frames to use : starting from 1, 3, 5, 15, 30 Mins and so on... to determine Trend.
Long = L and Short = S.
Where and how to use?
The main use of this indicator is quick scalping and Intra-day trading.
The Indicator shows the option to show Long/Short Signals which the use can be turned on or off.
The indicator shows a very useful option for early detection of the ongoing trend whether there will be reversal of trend or not ?
Stop Loss - That should be done by following ones risk appetite, Ideally the High of the Previous Candle should be the stop loss for the Long / Short but everyone has their own Risk Management Strategies based on the capital deployed.
Disclaimer : There could be scenarios when the candle is shown as a long or short and then the candle turns into opposite direction red/green. In such scenarios , Please refer to the just preceding candle and the early detection signal and if this candle is moving into positive direction only then go for long, Similarly opposite for Short, the value of multiplier 0.5 is determined using series of back test across various assets with different time frames.
User Options : Choice of turning on / off the Long / Short Labels and early detection/StopLoss Option can also be activated or deactivated.
Visual Checks - The user could manually validate the back test results on various assets they would like to use this strategy on before putting it live.
Usage/Markets : Index Trading / Equities and also well with Commodities and Currencies
How to get access
Please click on the link / email in the signature or send me a private message to get access
Feedback
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