The non-signal version of the absolute strength indicator from fxcodebase.com/code/viewtopic.php?f=38&t=67282 requested by ernie76 . This indicator originally from mt4 aim to estimate the bullish/bearish force of the market by using various methods.
The Indicator
Two lines are plotted, a bull line (blue) representing the bullish/buying force and a bear one (red) representing the bearish/selling force, when the bull line is greater than the bear line the market is considered to be strongly bullish, else strongly bearish.
The indicator use various method, Rsi, stochastic, adx. The Rsi method is the one by default.
The stochastic method is less reactive but smoother
The Adx method is way different, while the other two methods make the bull and bear lines somewhat uncorrelated, the adx method focus more on the overall market strength than individual buyer/seller strength.
The smoothing method use 3 different filters, SMA, EMA and LSMA, LSMA is more reactive than the two previous one while EMA is just more computer efficient.
It is possible to use price data of different time frames for the calculation of the indicator.
Stochastic method with 4 hour price close as source.
Conclusion
A classic indicator who can be derived into a lot of ways using a more adaptive architecture or recursion. Hope you find it a use :)
A big thanks to ernie76 for the request and the support/testing of the indicator
@aaahopper, I'm glad it is :) Apprentice did a great job with this indicator.
alysta
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awesome! math genius.
Outback_Explorer
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A very nice indicator, thanks for sharing!
Do you usually use the default 1 min as the chosen resolution? even when trading higher TFs?
And would the security function cause repainting when choosing a higher resolution compares to the TF you trade on?
alexgrover
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@Outback_Explorer, Thx for the support, idk why i chosen the 1 min tf as default but you are free to change it, personally i would. The security function under the version 3 of pinescript don't repaint by default.
Outback_Explorer
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@alexgrover, thanks for the reply, after some testing I have found out that the resolution only makes a difference when choosing a higher TF than the one you trade on. So basically the "1" as default is ideal since it will automatically choose your current TF. As for the security - I usually look at the previous candle's close to avoid re-painting problems. It might be more of an issue on Pine V4.
tiamo3733
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Thank you for sharing.
alexgrover
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@tiamo3733, You are welcome, feel free to suggest indicators :)