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M-oscillator

Correlation Coefficient + CCIPictured above is a graph of Royal Dutch Shell vs brent crude, the correlation coefficient between them, and the commodity channel index tracking the volume weighted moving average of Shell. I tested this indicator on a few energy stocks: RDS, MRO, BP and XOM. Negative correlation between brent crude and an energy stock coupled with an overbought CCI seems to give an indication of price reversal. Here we see two overbought CCI readings coupled with negative correlation, both followed by massive drops in the price of BCO and RDS. Likewise we see negative correlation coupled with upward CCI readings pointing to massive price rises in RDS. Seems to work on daily time frame as well but indicator length will need to be tweaked accordingly. Correlation coefficient going negative is an indication of pricing inefficiency and momentum potential, but does not give us an indication of price direction. The commodity channel index can give us a sense of where price momentum is pointed. Both put together give us a powerful indicator capable of foreshadowing both momentum and direction.
REducation
by Derivati_Capital
What are the most used indicators? For someone that wishes to get an edge using technical indicators, which ones would be some of the best ones to have into your arsenal? To answer that question I will look at which ones are the most popular, I am only looking at oscillators here, overlays are not used that much (not talking about moving averages). First of all I tried looking at what hedge funds were using but that info is quite hard to get, but from what little I have seen I will guess it is going to be close to what you would expect. I check several sites and youtubes to see what THEY used. But most importantly, I looked at trading view ideas, luckilly I was tired and lazy so I just checked hundreds of ideas manually and noted what they used. Also, remember alot of people do not used oscillators (or overlays) at all. I myself have strategies based on naked chart. Actually I will probably make a script that hunts for daily inside bars (maybe fakey patterns) and I will publish that on TV. What I found on other sites is quite similar to my results on trading view. Here they are: I checked the top 180 FOREX ideas this friday and I found: 17 Stoch (%D) 40 RSI 22 MACD 14 Other (1 to 3 each) ==> Stoch = 18%, RSI = 43%, MACD = 24% Top 11 pages for Futures (18*11 = 198 ideas): 10 Stoch 35 RSI 23 MACD 18 Other ==> Stoch = 12%, RSI = 41%, MACD = 27% Top 6 pages for stocks 15 Stoch 36 RSI 30 MACD 40 Other ==> Stoch = 12%, RSI = 30%, MACD = 25% I do not really like stoch that much, but I can vouch for MACD and RSI. I got a strategy based on RSI (+ other factors of course) and another one with macd. They are both pretty decent. You can use any oscillators you want, but any strategy that uses oscilators I believe should have RSI or MACD included. There is a reason they are popular, and if you trade a divergence or whatever and every one sees it too, you really have the odds on your side. Stoch is quite popular, but I do not know what to make of it. The way it works... idk. You could make a condition "I will only enter long when stoch is below 20" but I looked at this, you give up winners and still pick up losers, does not look amazing. My recommendation would be: - Do not use 500 indicators. What is wrong with you? XD This is not how trading works. - Use MACD or RSI. - You can throw in a second one of your liking. I also found out the oscillator I use had a 0.6% occurence. Feelsbadman.
Education
by MrRenev
5
How To Trade Histogram IndicatorsHistograms such as MACD histogram or my Ichimoku histogram give two kind of trading signals. One is common and is triggered on each price bar. The other happens less often but is extremely powerful. The common signal is triggered by the slope of the histogram. When the most recent bar is greater than the one before, the slope is bullish. This is saying that bulls have the situation in control and that it is time to buy. When the more recent bar is lower than the one before, the slope is bearish. This shows that bears have control and that it is time to sell. When price action is going in a direction but the histogram in another, it tells us that the trend is losing its strength. Rule #1 Buy or go long when the histogram stops falling and rise a little. Use a protection stop under last support. Rule #2 Sell or go short when the histogram stops rising and falls a little. Use a protection stop above last minor resistance. In lower timeframes, it is not be worth to buy and sell every time the histogram reverses. A change of direction of the histogram incline is much more significant on higher timeframes such as Daily or Weekly. Rule #3 Bearish divergence: Sell or go short when the histogram is reversing from its second lower high and price is on a new high. Place a protection stop above the new high. Rule #4 Bullish divergence: Buy or go long when the histogram is starting to reverse from its second higher low and price is on a new bottom. Place a protection stop under the new low.
Education
by cyatophilum
Use your own eyes & experience over oscillators. My bread and butter is RSI and MACD divergence, I cannot look at 15 charts or more at the same time so I use alerts with those. But I know to trust my own judgement over what some indicator tells me. In these examples, and I could show countless more, what eyes tell us is what is right, not what the oscillators tell us. Yes, I know, I am comparing 2 different assets. Does not matter it works the same. Gigantic candle? You are not going to beat it all by yourself (well maybe in crypto you will if you are a whale that enjoys manipulating the price but why risk your money?). Wait for others to start buying/selling before you go in the same direction. "Experts" all say you win by going agaisnt the herd. Well they are all wrong, and stupid. The price moves in the direction of the majority, ALWAYS. Or to be more precise, where the most money is. 10 billion dollar buying and 1 billions dollar selling? The sellers won't win because they "go against the herd", 10 > 1 hence buyers are stronger ==> We go up!!!! Join the herd, simply be smarter. "Panic sell" before they do, wait for the front line to go in early and join after the battle started and the ones no one will remember died. They did the heavy lifting for you, all you have to do is wave your sword around, cut into pieces bruised tired solders, and get out before reinforcements arrive. You will be remember as the hero savior that destroyed them all 1 to 10, outnumbered! (Kinda like what the USA did when they "freed" europe, after the soviet union got 20 million casualties to destroy the bulk of the NAZI army - No I do not hate the USA lol I'm just saying) For GBPJPY: No divergence, but the sellers clearly showed up, and we went back up with less strengh I can see it with my own eyes. What the oscillators say does nto matter. They are simply here to help us. And for that Bitcoin example :) Also, Bitcoin went up and made a lower high with hidden divergence on both macd and RSI 1 hour chart. In this case, it can be used as further confirmation of "yep, sellers are back in force we going doooown!" I swear I picked examples at random not the "perfect ones". FOMO in and PANIC SELL quickly and you will be rewarded immensly. But FOMO while TAKING YOUR TIME. If you want to buy, wait for OTHER BUYERS to show up MASSIVELY before you join them. That all comes with experience. So if you are not there yet learn to play and git gud. NO ONE makes money by going in too early. EVER.
BITFINEX:BTCUSDEducation
by MrRenev
2
3] How to use Traders Dynamic Index and Complementary OverlayXtremePhaser = Thin Cyan line HighPhaser = Thin Blue line HighMBL = Thin Orange line Phaser = Thick Blue line Midline = Thick Black line & others. Just like the traditional use of moving averages, HighPhaser and XtremePhaser allows for higher time frame trend (by their nearness and crossover) to be seen and recognized by traders allowing them to respect market's condition to not imply what is not true and in the end 'lose it all'. It (TDI-CO) allows of course to show support and resistance. It also allows for support/resistance breakout to be evidenced as seen in 15 min chart with price being squeezed by Phaser (&Midline) and XtremePhaser. How to to trade retracements: Retracements come with the expectation of a trend continuation, therefore the safest trade is to continue trend not countertrend-trading with the pullback. Component lines aid in recognizing when the market is in a pullback as seen in image. HighMBL overlay did not allow price to rise any higher. Phaser and HigherMBL formed a channel because of their slope downward, but the importance of their steepness is major, as it should determine how you should trade. In summary you should trade in same steepened direction as the thick blue and thin orange line, but a breakout of a flat highLine is more promising for the adept swing traders.
Education
by YardleyRosette
2] How to use Traders Dynamic Index and Complementary OverlayWe here learn to observe the higher time frame 360, and analyse 1D that RSIPL are crossed down parallel. So lower than daily time frame= 540, 360 allows for trend entry at a 360 RSIPL and 'TSL initial cross down for max profit. On 180 as on 360 allowed for entry using the RSIPL/TSL crosses down. Also observing Phaser very near price as it 'pushed' priced down until price could breakout Phaser which had much importance. Price breakout of black Midline meant clear reversal and price retraced to it for support with target being HighPhaser or Fibonacci retracement tool for extension target. Entry for this retracement was possible by means of the countertrendline cross. __________ Promoting free and highly useful Indicators: KK_Traders Dynamic Index_Bar Highlighting Traders Dynamic Index Overlay "Price Action Channel Master by JustUncleL Restored"
Education
by YardleyRosette
1] How to use Traders Dynamic Index and Complementary OverlayTraders Dynamic Index serves for crossover signals and are essential for trade entries and most beneficial when identified on over 30-minute Time Frames as on hourly time frames. I have made the options available of the oversold (green) 32 level line overlay which is useful in identifying potential buy zones/price. In KK_Traders Dynamic Index_Bar Highlighting it is also good to note that in uptrends : RSI ranges between Upper Volatility Band, Lower Volatility Band and/or relatively "within" 68 and 50 level lines as it has been doing on hourly time frames on Bitcoin. Direction and deviation of MBL overlay or Phaser from price is strong indicator of trend direction and price level/zone useful for those who are confused in knowing where price will have to average into. Promoting free and highly useful Indicators: KK_Traders Dynamic Index_Bar Highlighting Traders Dynamic Index Overlay "Price Action Channel Master by JustUncleL Restored" _______________ I had not used these guides recently which I have currently published. If anything (I ever do publish) varies contrary to these indicated guides and the coming guides to be published, the likelihood of failed forecast is augmented.
BITSTAMP:BTCUSDEducation
by YardleyRosette
An idiot's guide to trading Bitcoin - Case study from 2017It's always easier to look back and see what should have been obvious at the time. This is a short case study of how one COULD have traded Bitcoin successfully from it's last epic run of 2017. This should be a precursor to what happens in 2018 and going forward. It isn't a 'method', but is an observation and an opinion that will guide my own trading going forward. A year in Bitcoin is like a decade in almost any other stock. This presents numerous insights. We see that from late 2016 onward we had a series of higher highs / higher lows. If one simply applies a basic 14 period RSI oscillator to the chart and looks at price action, they would see that as long as Bitcoin was making higher highs and higher lows WITHOUT any significant divergence it would have been foolish to take profits / time the market / etc. The price retracements from where the RSI gets into overbought (sometimes significantly) territory simply weren't that large. Taking profits would certainly have led to feelings of accomplishment and $$$ but one would have missed out on even greater subsequent moves. It simply made more sense to be in the market, rebuying at times like July and September when BTC/USD dipped into oversold territory (while still making higher lows - although July is arguable). Note that there really isn't any divergence of mention between price and the oscillator during this time. It isn't until we get to December that we start to see some extreme bearish divergence. Price careens upwards and pauses on 12-17. The oscillator makes a markedly lower low. While in hindsight it was probably impossible to time profit taking unless you were glued to your screen / phone, this was the first real time in the year long bull run to considering pausing and selling. The sharp move downwards over the next few days wipes away nearly half of the coin's value. Ouch! Lessons: Don't bother paying attention to oscillators in trending markets unless they are showing signs of divergence. Selling / timing the market will in all likelihood lead to regret / FOMO / emotional trading decisions. If there are signs of divergence after an especially massive run, take profits immediately. Waiting could lead to massive hemorrhaging of profits. As long as the crypto is making higher highs / higher lows feel free to rebuy in wherever it feels right to do so, especially when it gets into oversold territory. Let's see what the rest of 2018 brings. I'll be sitting around enjoying life until there is some clear indicator of where the market is headed. Note: this same analysis could apply to a number of other coins. I haven't checked.
BITSTAMP:BTCUSDEducation
by timj
2