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Wilder

Bollinger and Wilder Charts Suggesting BottomThe Bollinger chart is on the left and the Wilder chart is on the right. The Bollinger chart shows bullish divergence between price and %B which is confirmed by AD%. See the yellow bars. AD% is a normalized accumulation/distribution indicator. Price has also created a double bottom and closed above the 20-day moving average, triggering a long entry. The Wilder chart shows bullish RSI divergence with a failure swing (higher low and higher high), as indicated by the yellow bars. ADX is threatening a crossover but has yet to achieve one. The parabolic SAR has triggered a long entry. The two lower indicators are not Wilder indicators, but both are showing bullish divergence. Note: a 50% retrace was accomplished last week. I went long two micros after the bell with a stop below the day’s low. I’ll consider closing the trade in part or in full near the 9-week moving average which is near the high from a couple weeks ago at 378.50. SPY closed at 371.13 today and is currently up after hours as of this writing at 8:27pm EST.
AMEX:SPYLong
by Skipper86
1
KDA/USDT 15m timeframeaccording to an Elliot wave ; - WILD could have a leg up to the first target area (blue arrow) which is between the 0.5 & 0.618 fib levels of the Elliot wave A length - or WILD could retrace (orange arrow) to the black line which is the 1.618 fib level of the wave A and then bounce up - the second target box is the top of the ichimoku cloud and because there has been candle closes in the ichimoku cloud this target area is likely - there is also a MACD cross
Long
by CharlieMcclelland
1
Weekly Line Chart DivergencesHello traders, I am not a financial advisor. I am not telling you to trade any asset. I am simply sharing my ideas on how to use tools to implement my own investment strategy. Here is a zoomed-out look you can use to come up with some of your own ideas on where the $SPX may go and how to manage your risk. Most of my core strategies are developed on the indices so I will have to implement them on individual tickers unless the comments are interesting. This is a lagging indicator and should put me on the side of the trade that is *probably* likely to continue. By probably, I mean you need to do your own research and look at what the markets want to go and develop your own tools to work with the data. Orientation: Line Chart of ticker on weekly time frame RSI using 12 periods (or weeks, in this case) Signals can be marked using a vertical line or time-based axis marker . In this case, I am using 3 colors of lines, explained by the "Monday Action" legend. We will dive into more detail later on. I also have EMA using ohlc4 on periods (or weeks) 10, 25, 50, 100, 200. Now to the good stuff: Divergences have been around for quite some time. Research about the RSI (Relative Strength Index) and it's roots It is much easier to see something that is larger, than smaller, thus we look at weekly time frames One can use volume, closing price and RSI to help manage one's risk Narrowing a decision to 3 choices can help alleviate indecision So for this application of the RSI and divergence, one can use a simple line chart on a weekly time frame (this chart is based on the closing price from what I can tell, but I was unable to confirm that with the Help Center. I was able to confirm by checking yesterday's close with current reading - it will be different after this post as the weekly close will come in today (writing before market close Friday morning)). We can start at the March 2020 rally. We can see the March 23rd, 2020 weekly close paint a divergence on the RSI. One can see the price close at a higher high when compared to March, 16th, 2020. The RSI values remain relatively flat: 17.95 to 18.04. Find entry One might conclude this is a time to buy. Because of the magnitude of the move DOWN, the move up was also shorted. One would have to employ the use of other tools in order to find entry in the following week. (Use the white anchored notes to see the explanations of thought process). Find an entry in the next week. One can place orders on the weekend in "shotgun fashion" perhaps placing 50% order above current price and 50% below, or whatever method suits you. Hedge Risk The next yellow line is 08/24 - 31/2020. The close indicates indecision in the market. Since this is the first divergence I would simply hedge the FANTASTIC long during the March 2020 buy. This can help to be determined from YELLOW vs RED using the 10 period moving-average of volume. Use options or other means to protect one's long investments Sell of Heavy Hedge The next divergence is JAN 2021. This is the second one so I would probably sell at this point. I would use my other tools to figure out what to do. Heavy hedging can be using derivatives or shorting your long positions. Timing A simple way to use this strategy might be to use the color's GREEN, YELLOW, RED, just like traffic lights. There will be deviations, and variations to the method, but if you back-test this you will probably find this works generally well. Monday Action Now I used the words Monday Action simply because that was the next possible day to make a decision. I can make my decision probably anytime within Friday if I feel comfortable with it. I can also place actions for Monday on the weekend. Bottom Line This week's close is very important. If we follow the green, yellow, red method from above, this very well can be a RED. It can also be another YELLOW. Volume is indicating something big, but we will see!
SP:SPXEducation
by elkenpolar
Wilder - Another Hidden Gem?Guys, Wilder is looking legit. Such a great buy in position right now - we're at the bottom of a falling wedge. Not much room left before price has to explode. The risk to reward here is also insane. Big support around $1.36 area so that's the risk right now. I personally think WILD will go way above $6 in the long term but for the month of October, a $6 WILD is not out of the question. Project was even mentioned by the great Raoul Pal on a tweet somewhere which he exchanged with some other influencer a few weeks ago. Wilder launched their NFT cars already - they look amazing. This is going to be GTA but on blockchain! Huge hype coming here - don't miss out. PS this isn't financial advice - just my opinion. I'm invested in WILD obviously.
Long
by yas_btc_eth
A More Efficient Calculation Of The Relative Strength IndexIntroduction I explained in my post on indicators settings how computation time might affect your strategy. Therefore efficiency is an important factor that must be taken into account when making an indicator. If i'am known for something on tradingview its certainly not from making huge codes nor fancy plots, but for my short and efficient estimations/indicators, the first estimation i made being the least squares moving average using the rolling z-score method, then came the rolling correlation, and finally the recursive bands that allow to make extremely efficient and smooth extremities. Today i propose a more efficient version of the relative strength index, one of the most popular technical indicators of all times. This post will also briefly introduce the concept of system linearity/additive superposition. Breaking Down The Relative Strength Index The relative strength index (rsi) is a technical indicator that is classified as a momentum oscillator. This technical indicator allow the user to know when an asset is overvalued and thus interesting to sell, or under evaluated, thus interesting to buy. However its many properties, such as constant scale (0,100) and stationarity allowed him to find multiple uses. The calculation of the relative strength index take into account the direction of the price changes, its pretty straightforward. First we calculate the average price absolute changes based on their sign : UP = close - previous close if close > previous close else 0 DN = previous close - close if close < previous close else 0 Then the relative strength factor is calculated : RS = RMA(UP,P)/RMA(DN,P) Where RMA is the Wilder moving average of period P . The relative strength index is then calculated as follows : RSI = 100 - 100/(1 + RS) As a reminder, the Wilder moving average is an exponential filter with the form : y(t) = a*x+(1-a)*y(t-1) where a = 1/length . The smoothing constant being equal to 1/length allow to get a smoother result than the exponential moving average who use a smoothing constant of 2/(length+1). Simple Efficient Changes As we can see the calculation is not that complicated, the use of an exponential filter make the indicator extremely efficient. However there is room for improvement. First we can skip the if else or any conditional operator by using the max function. change = close - previous close UP = max(change,0) DN = max(change*-1,0) This is easy to understand, when the closing price is greater than the previous one the change will be positive, therefore the maximum value between the change and 0 will be the change since change > 0 , values of change lower than 0 mean that the closing price is lower than the previous one, in this case max(change,0) = 0 . For Dn we do the same except that we reverse the sign of the change, this allow us to get a positive results when the closing price is lower than the previous one, then we reuse the trick with max , and we therefore get the positive price change during a downward price change. Then come the calculation of the relative strength index : 100 - 100/(1 + RS) . We can simplify it easily, first lets forget about the scale of (0,100) and focus on a scale of (0,1), a simple scaling solution is done using : a/(a+b) , where (a,b) > 0 , we then are sure to get a value in a scale of (0,1), because a+b >= a . We have two elements, UP and DN , we only need to apply the Wilder Moving Average, and we get : RMA(UP,P)/(RMA(UP,P) + RMA(DN,P)) In order to scale it in a range of (0,100) we can simply use : 100*RMA(UP,P)/(RMA(UP,P) + RMA(DN,P)) = 100*RMA(max(change,0),P)/(RMA(max(change,0),P) + RMA(max(change*-1,0),P)) And "voila" Superposition Principle and Linear Filters A function is said to be linear if : f(a + b) = f(a) + f(b) . If you have studied signal processing a little bit, you must have encountered the term "Linear Filter", its just the same, simply put, a filter is said to be linear if : filter(a+b) = filter(a) + filter(b) Simple right ? Lot of filters are linear, the simple moving average is, the wma, lsma, ema...etc. One of most famous non linear filters is the median filter, therefore : median(a+b) ≠ median(a) + median(b) When a filter is linear we say that he satisfies the superposition principle. So how can this help us ? Well lets see back our formula : 100*RMA(UP,P)/(RMA(UP,P) + RMA(DN,P)) We use the wilder moving average 3 times, however we can take advantage of the superposition principle by using instead : 100*RMA(UP,P)/RMA(UP + DN,P) Reducing the number of filters used is always great, even if they recursion. Final Touch Thanks to the superposition principle we where able to have RMA(UP + DN,P) , which allow us to only average UP and DN togethers instead of separately, however we can see something odd. We have UP + DN , but UP and DN are only the positive changes of their associated price sign, therefore : UP + DN = abs(change) Lets use pinescript, we end up with the following estimation : a = change(close) rsi = 100*rma(max(a,0),length)/rma(abs(a),length) compared to a basic calculation : up = max(x - x , 0) dn = max(x - x, 0) rs = rma(up, length) / rma(dn, length) rsi = 100 - 100 / (1 + rs) Here is the difference between our estimate and the rsi function of both length = 14 : with an average value of 0.000000..., those are certainly due to rounding errors. In a chart we can see that the difference is not significant. In our orange our estimate, in blue the classic rsi of both length = 14. Conclusion In this post i proposed a simplification of the relative strength index indicator calculation. I introduced the concept of linearity, this is a must have when we have to think efficiently. I also highlighted simple tricks using the max function and some basic calculus related to rescaling. I had a lot of fun while simplifying the relative strength index, its an indicator everyone use. I hope this post was enjoyable to read, with the hope that it was useful to you. If this calculation was already proposed please pm me the reference. You can check my last paper about this calculation if you want more details, the link to my papers is in the signature. Thanks for reading !
NASDAQ:INTCEducation
by alexgrover
14
Profitable RSI optimizes 3 parameters!Well, it's just a small public announcement. I went to this for a long time and now it has become possible. Profitable RSI now handles 3 parameters of the standard RSI indicator to find the best tuple of settings. So, additionally to period setting, the optimizer takes under consideration different Overbought (from 60 to 70 ) and Oversold levels (from 30 to 40 ) for each RSI period. Four main conclusions from my research (if you gonna trade with RSI): The OB/OS levels are not necessary to be the standard 70/30 ones. With all my respect to J. Welles Wilder, but those bounds cannot be considered optimal. The OB/OS levels can be asymmetric. So OB can be 65 while OS is 39. Not 70/30, not 60/40 and not 75/25. Asymmetric ones. There is no efficient trading with period setting higher than 50. We can make a feast even from the old indicator And the last thing I wanted to add - let's not live in the old paradigms. The world is changing, trading is changing and we must change too. Don't be afraid to experiment with something new for you. The tool I talked about, the Profitable RSI, is here Good luck, Good health, God bless you
Education
by everget
11