EFI (Elder's Force Index) is a "power detector" in the stock market created by Master Alexander Elder. It combines price, volume, and market force to help determine the direction and strength of the market. The calculation formula for EFI is (current period closing price - previous period closing price) × volume, followed by applying the exponential moving average. Divergence in EFI can be used as a buying or selling signal, but it is recommended to use it in conjunction with other technical analysis tools.
The Ease of Movement (EOM) is a volume-based technical indicator used to observe the ease of market movement. EOM measures the market's operating state by calculating the moving distance and box ratio. A wide range with low volume indicates that the market is relatively easy to move, while a narrow range with high volume indicates that the market is relatively difficult to move. EOM can be used in conjunction with other indicators to help us better understand the dynamics of the market.
The document discusses the concept of the Double Exponential Moving Average (Double EMA) as a market indicator. It explains the calculation formula and highlights its advantages and considerations. The document also provides a Pine Script code example for implementing the Double EMA indicator on the TradingView platform.
The Donchian Channels is a technical indicator created by Richard Donchian to measure market volatility and identify trading signals. It consists of an upper band, lower band, and baseline, calculated based on the highest and lowest prices over a specified period. The indicator helps determine overbought or oversold conditions and confirm the strength of a trend. It is best used in conjunction with other technical analysis tools and can be implemented using TradingView Pine Script.
This document discusses the concept of divergence as a technical indicator in the financial market. Divergence is described as a key that guides traders to potential price reversals. The document explains the two types of divergence (positive and negative) and emphasizes the importance of combining divergence with other indicators and analysis tools. It also provides a code script for drawing divergence indicators using TradingView's Pine Script language.
This article introduces the technical analysis method of the Directional Movement Index (DMI). DMI consists of the Average Directional Index (ADX), Positive Directional Indicator (+DI), and Negative Directional Indicator (-DI), which are used to identify and measure the strength and direction of market trends. The article explains the calculation methods of these indicators and mentions their application in generating trading signals and setting stop losses. It also points out the limitations of DMI in the stock market and shares a Pine script code for calculating DMI.
The Detrended Price Oscillator (DPO) is a magical time machine that helps us remove price trends and identify short-term cycles. DPO measures the range and typical duration of cycles by comparing past prices with a simple moving average. However, DPO does not necessarily generate signals and is best used in conjunction with other indicators that measure trends or momentum.
Tom's Trading Compass is a powerful tool that helps traders identify potential market trend reversal points through specific price action patterns. The script uses sequential logic and label plotting to analyze price movements, identify buy and sell signals, and provide intuitive visual indications to help traders better understand and track market dynamics.
This article introduces an indicator called "L3 Projected Magic-9/13", which is based on the TDS theory and has been innovated and expanded. The main features of the indicator include projection range, multi-timeframe support, magical nine turns logic, chart labels, and custom functions. It is used to identify market trends and turning points and is suitable for experienced traders and analysts.
Pine Script is a scientific language based on logic and data that performs magic on TradingView charts. It uses the opening price, high price, low price, closing price, and trading volume of each candlestick to cast its magic. Historical candlesticks are only executed once, on the closing price, while real-time candlesticks are executed every time the data is updated. Built-in variables such as open, high, low, close, and volume are used to predict the future based on past data on historical candlesticks and continuously update on real-time candlesticks. The behavior of strategies and indicators is also different, with strategies being executed only on the closing of real-time candlesticks, while indicators are executed on every update. Understanding the execution mechanism of Pine Script can better utilize this powerful tool for quantitative trading.
This article introduces common recursive filters in TradeStation formulas, including FIR and IIR structures. It lists some common moving averages and filter types such as simple moving average, weighted moving average, exponential moving average, etc. Additionally, it mentions the principles and applications of the Kalman filter as a type of recursive filter. The article emphasizes that recursive filters are suitable for real-time systems and have the ability to adapt and adjust to changes in market conditions. Finally, it provides a list of common types and application areas for both recursive and non-recursive filters.
Adaptive filters are a type of filter that does not belong to traditional low-pass, high-pass, band-pass, or band-stop filters. They can automatically adjust the filtering effect based on market volatility and periodicity. This type of filter provides a more flexible and intelligent tool to help us better understand and analyze market dynamics. John F. Ehlers has developed various adaptive technical indicators, such as the MESA Adaptive Moving Average (MAMA) and the Adaptive Laguerre filter, which can better adapt to market changes and provide more timely and accurate signals. Building an adaptive filter requires in-depth analysis of market data, understanding its inherent dynamics, and using this knowledge to dynamically adjust the filter's parameters.