OPEN-SOURCE SCRIPT
Aggiornato Time Price Indicator
Introduction
There are already several indicators who measure the time behavior relative to price, the most well know being the Aroon indicator published by Tushar Chande. I propose an alternative indicator TPI who tend to create less whipsaw's at the cost of small reactivity.
The Indicator
The TPI is in a range of 0.5/-0.5 and is no different than the Aroon indicator when it come to signal generation, when the upper line (in blue) crossover the lower line (in orange) the indicator generate a buy signal, when the lower line cross under the upper line a sell signal is generated.
Comparison
The Aroon indicator tend to use more information which involve more reactivity but more uncertainty as well.
Aroon and TPI with both length = 50. White lines represent signals where the Aroon and my proposed indicator react at the same time, the red line show a whipsaw and the green line show a signal generated faster by the Aroon.
Here is a more pertinent exemple
Aroon reacted to price range which at the end involved many whipsaw, the TPI however stayed on a sell signal and did not reacted to this price range. The cost to avoid so many whipsaw was a reactivity of 7 bars back when the sell signal of the TPI was generated.
A statistic of the signal numbers generated by both indicator is shown below
The blue line show the number of signals generated by the Aroon indicator and in orange the number generated by the TPI with both length = 14. Aroon generated 410 while the TPI generated 288 signals.
Conclusion
The Aroon indicator and TPI can both generate a signal at the same time or with a small period deviation with the ability of the TPI to avoid some whipsaw.
There are already several indicators who measure the time behavior relative to price, the most well know being the Aroon indicator published by Tushar Chande. I propose an alternative indicator TPI who tend to create less whipsaw's at the cost of small reactivity.
The Indicator
The TPI is in a range of 0.5/-0.5 and is no different than the Aroon indicator when it come to signal generation, when the upper line (in blue) crossover the lower line (in orange) the indicator generate a buy signal, when the lower line cross under the upper line a sell signal is generated.
Comparison
The Aroon indicator tend to use more information which involve more reactivity but more uncertainty as well.
Aroon and TPI with both length = 50. White lines represent signals where the Aroon and my proposed indicator react at the same time, the red line show a whipsaw and the green line show a signal generated faster by the Aroon.
Here is a more pertinent exemple
Aroon reacted to price range which at the end involved many whipsaw, the TPI however stayed on a sell signal and did not reacted to this price range. The cost to avoid so many whipsaw was a reactivity of 7 bars back when the sell signal of the TPI was generated.
A statistic of the signal numbers generated by both indicator is shown below
The blue line show the number of signals generated by the Aroon indicator and in orange the number generated by the TPI with both length = 14. Aroon generated 410 while the TPI generated 288 signals.
Conclusion
The Aroon indicator and TPI can both generate a signal at the same time or with a small period deviation with the ability of the TPI to avoid some whipsaw.
Note di rilascio
Updated to v4Custom calculation for rising and falling
Note di rilascio
some correctionsScript open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Check out the indicators we are making at luxalgo: tradingview.com/u/LuxAlgo/
"My heart is so loud that I can't hear the fireworks"
"My heart is so loud that I can't hear the fireworks"
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Check out the indicators we are making at luxalgo: tradingview.com/u/LuxAlgo/
"My heart is so loud that I can't hear the fireworks"
"My heart is so loud that I can't hear the fireworks"
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.