OPEN-SOURCE SCRIPT
ECO (Blau`s Ergodic Candlestick Oscillator)
We call this one the ECO for short, but it will be listed on the indicator list
at W. Blau’s Ergodic Candlestick Oscillator. The ECO is a momentum indicator.
It is based on candlestick bars, and takes into account the size and direction
of the candlestick "body". We have found it to be a very good momentum indicator,
and especially smooth, because it is unaffected by gaps in price, unlike many other
momentum indicators.
We like to use this indicator as an additional trend confirmation tool, or as an
alternate trend definition tool, in place of a weekly indicator. The simplest way
of using the indicator is simply to define the trend based on which side of the "0"
line the indicator is located on. If the indicator is above "0", then the trend is up.
If the indicator is below "0" then the trend is down. You can add an additional
qualifier by noting the "slope" of the indicator, and the crossing points of the slow
and fast lines. Some like to use the slope alone to define trend direction. If the
lines are sloping upward, the trend is up. Alternately, if the lines are sloping
downward, the trend is down. In this view, the point where the lines "cross" is the
point where the trend changes.
When the ECO is below the "0" line, the trend is down, and we are qualified only to
sell on new short signals from the Hi-Lo Activator. In other words, when the ECO is
above 0, we are not allowed to take short signals, and when the ECO is below 0, we
are not allowed to take long signals.
at W. Blau’s Ergodic Candlestick Oscillator. The ECO is a momentum indicator.
It is based on candlestick bars, and takes into account the size and direction
of the candlestick "body". We have found it to be a very good momentum indicator,
and especially smooth, because it is unaffected by gaps in price, unlike many other
momentum indicators.
We like to use this indicator as an additional trend confirmation tool, or as an
alternate trend definition tool, in place of a weekly indicator. The simplest way
of using the indicator is simply to define the trend based on which side of the "0"
line the indicator is located on. If the indicator is above "0", then the trend is up.
If the indicator is below "0" then the trend is down. You can add an additional
qualifier by noting the "slope" of the indicator, and the crossing points of the slow
and fast lines. Some like to use the slope alone to define trend direction. If the
lines are sloping upward, the trend is up. Alternately, if the lines are sloping
downward, the trend is down. In this view, the point where the lines "cross" is the
point where the trend changes.
When the ECO is below the "0" line, the trend is down, and we are qualified only to
sell on new short signals from the Hi-Lo Activator. In other words, when the ECO is
above 0, we are not allowed to take short signals, and when the ECO is below 0, we
are not allowed to take long signals.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.