Lachie 3.0: DDS (Divergence Detection System)
Introduction:
The purpose of this indicator is to assist users in detecting bullish divergence across any time frame. Divergence is the main component of my methodology, this on display at Blockchain Education (charts, calls, etc..). This is not a signal script, it is purely for educational purposes and should only be used as an indicator to invest further time in TA.
How to interpret:
When a unique event occurs in the market the logic of the code will trigger and display a green X underneath the candles on your chart. The green X means that the code is detecting bullish divergence. The chart may draw several Xs in one location.
What should I do when an X is drawn:
As this is an educational indicator, I can only recommend that once an X is drawn you should pay further attention to the currency/stock (do further Technical analysis). In some market conditions this indicator can be used and automated as an appropriate buy signal, however due to its primitive nature it can go wrong on the rare occasion.
What time frames is this indicator best on:
This indicator was designed on a 1 hour chart. However, it does perform quite well on the daily, 4 and 6 hour charts. Its performance is acceptable on 15 and 5 min for day trading.
FAQ:
Should I buy when I see a green X?
I will not recommend any purchases without first proper TA. Majority of the time the indicator will correctly fin the bottom however in extreme down trends the code will display fake Xs. Upon proper TA you will see how these are fake, but if you rely on a signal, you may get caught out.
I am getting too many Xs on my chart?
The logic of the code may not support some lower time frames, which will result in a lot of Xs.
Some divergence will complete over a large amount of candles, which can also cause a cluster of signals.
In a down trend occasionally the logic cannot correct interpret the weakness in the market.
Is this indicator applicable to any market?
Yes, although the indicator was developed based on Crypto Currency markets, the indicator is usable and in most instances more accurate on traditional markets.
Will there be future updates released?
As the code ages and further development is made, updates including increase accuracy for automation and signals may be released. This is really released for educational support. these updates may be released under a separate indicator listing.
This is an earlier derivative of current indicator with bullish and bearish divergence with higher accuracy (signal) script. This is for educational purposes only to aid people following my calls and methodology at Blockchain Education.
Images of indicator:
Created and owned by Lachlan Schahinger. (2018)
Indicatore DM
Consolidation vs Trending
ADX is used to quantify trend strength. ADX calculations are based on a moving average of price range expansion over a given period of time. The default setting is 14 bars, although other time periods can be used. ADX can be used on any trading vehicle such as stocks, mutual funds, exchange-traded funds and futures.
ADX is plotted as a single line with values ranging from a low of zero to a high of 100. ADX is non-directional; it registers trend strength whether price is trending up or down. The indicator is usually plotted in the same window as the two directional movement indicator (DMI) lines, from which ADX is derived.
When the +DMI is above the -DMI, prices are moving up, and ADX measures the strength of the uptrend. When the -DMI is above the +DMI, prices are moving down, and ADX measures the strength of the downtrend.
ADX values help traders identify the strongest and most profitable trends to trade. The values are also important for distinguishing between trending and non-trending conditions. Many traders will use ADX readings above 25 to suggest that the trend is strong enough for trend-trading strategies. Conversely, when ADX is below 25, many will avoid trend-trading strategies.
ADX Value Trend Strength
0-25 Absent or Weak Trend
25-50 Strong Trend
50-75 Very Strong Trend
75-100 Extremely Strong Trend
Risk Appetite IndicatorBitfinex coins risk appetite indicator. To be applied on EOS and LTC and perhaps on other coins, too.
Go long when the background is red, go short when the background is green.
Based on LONGS compared with the LONGS on BTC+ETH+XRP. Only works on coins that can be margin traded @ Bitfinex - because it reads the number of Bitfinex long positions.
Alerts are available.
Time Indicator*This is a private script for Personal Use. To avoid any Trade Mark violations, the official math rules have been slightly optimized & name changed.
The Time Indicator gets its inspiration from the classic and trademarked work of Tom Demark (with one of the biggest differences being the elimination of the "Price Flip" being a necessary condition to start a "Setup"). The Indicator only displays values on the most recent 13 candles unless unless the count has something critically like 9. You should be very familiar with traditional trading techniques & the Tom DeMark's indicators in order to follow this one & also understand how it is different. Here is a very good presentation on it as part of Bloomberg's Market Essentials Trading Education Series .
The Chart below displays the features of the Indicator, but it is still a work in progress, additional features will be added soon in future updates.
TI - Backtest*This is a private script for Personal Use. To avoid any Trade Mark violations, the official math rules have been slightly optimized & name changed.
The Time Indicator - Backtest gets its inspiration from the classic and trademarked work of Tom Demark (with one of the biggest differences being the elimination of the "Price Flip" being a necessary condition to start a "Setup"). The word 'backtest' means that this indicator is displaying a count on every single candle and is ideal for backtesting strategies vs the regular Time Indicator that is only displaying numbers on recent candles. You should be very familiar with traditional trading techniques & the Tom DeMark's indicators in order to follow this one & also understand how it is different. Here is a very good presentation on it as part of Bloomberg's Market Essentials Trading Education Series .
The Chart below displays the features of the Indicator, but it is still a work in progress, additional features will be added soon in future updates.
