This indicator displays the trend-adjusted price activity of a security. It oscillates around the zero-line. It is usually plotted as OHLC, but Pine doesn't have this support yet. So, I have rendered OHLC separately (see chart for the details).
This indicator is particularly useful for ‘scalping’ in a sideways market, where there is limited movement taking place, rather than a trending market undergoing larger swing movements.
I am not sure how much this resembles the commercial indicator out there as I don't have access to one. This is a direct port of a similar TOS indicator.
[ --- Updated June 18 2014 ---] Removed direct links.
np LB, thanks for the tip here, I was unaware of this indicator. Where did you get the calc for it? Was it reverse engineered?
TheLark
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oops nvm, I just read your comment in the description
TheLark
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Bars *ARE* recalculated, so since my initial tests are not walk forward, the 70% results are definitely skewed.
LazyBear
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shucks, thats disappointing!
By "recalculate", you mean the previously calculated values actually change..correct? This is confirmed by a TV developer?
TheLark
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Yes past data changes, I need to look more closely at the calculation when I have a minute, but the data is probably being normalized based on highest highs and lowest lows to fit within a range, if so, past data changing would not be uncommon.
I witnessed the values change on another platform, the code was an exact port of yours
TheLark
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I should rephrase highest/ lowest to "indicator extremes"