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Inertia Indicator

GKD-C Inertia [Loxx]Giga Kaleidoscope GKD-C Inertia is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System". █ Giga Kaleidoscope Modularized Trading System What is Loxx's "Giga Kaleidoscope Modularized Trading System"? The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading. What is the NNFX algorithmic trading strategy? The NNFX (No-Nonsense Forex) trading system is a comprehensive approach to Forex trading that is designed to simplify the process and remove the confusion and complexity that often surrounds trading. The system was developed by a Forex trader who goes by the pseudonym "VP" and has gained a significant following in the Forex community. The NNFX trading system is based on a set of rules and guidelines that help traders make objective and informed decisions. These rules cover all aspects of trading, including market analysis, trade entry, stop loss placement, and trade management. Here are the main components of the NNFX trading system: 1. Trading Philosophy: The NNFX trading system is based on the idea that successful trading requires a comprehensive understanding of the market, objective analysis, and strict risk management. The system aims to remove subjective elements from trading and focuses on objective rules and guidelines. 2. Technical Analysis: The NNFX trading system relies heavily on technical analysis and uses a range of indicators to identify high-probability trading opportunities. The system uses a combination of trend-following and mean-reverting strategies to identify trades. 3. Market Structure: The NNFX trading system emphasizes the importance of understanding the market structure, including price action, support and resistance levels, and market cycles. The system uses a range of tools to identify the market structure, including trend lines, channels, and moving averages. 4. Trade Entry: The NNFX trading system has strict rules for trade entry. The system uses a combination of technical indicators to identify high-probability trades, and traders must meet specific criteria to enter a trade. 5. Stop Loss Placement: The NNFX trading system places a significant emphasis on risk management and requires traders to place a stop loss order on every trade. The system uses a combination of technical analysis and market structure to determine the appropriate stop loss level. 6. Trade Management: The NNFX trading system has specific rules for managing open trades. The system aims to minimize risk and maximize profit by using a combination of trailing stops, take profit levels, and position sizing. Overall, the NNFX trading system is designed to be a straightforward and easy-to-follow approach to Forex trading that can be applied by traders of all skill levels. Core components of an NNFX algorithmic trading strategy The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm: 1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc. 2. Baseline - a moving average to identify price trend 3. Confirmation 1 - a technical indicator used to identify trends 4. Confirmation 2 - a technical indicator used to identify trends 5. Continuation - a technical indicator used to identify trends 6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown 7. Exit - a technical indicator used to determine when a trend is exhausted What is Volatility in the NNFX trading system? In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period. True range is calculated as the maximum of the following values: -Current high minus the current low -Absolute value of the current high minus the previous close -Absolute value of the current low minus the previous close ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses. Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass What is a Baseline indicator? The baseline is essentially a moving average, and is used to determine the overall direction of the market. The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR). Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail. By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend. What is a Confirmation indicator? Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI). The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend. Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators. In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades. What is a Continuation indicator? In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy. What is a Volatility/Volume indicator? Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa. By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements. What is an Exit indicator? The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy. The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit. The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses. In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor. Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time. How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above? Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are: 1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm) 2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm) 3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm) 4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm) 5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm) (additional module types will added in future releases) Each module interacts with every module by passing data between modules. Data is passed between each module as described below: GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy. This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm. What does the application of the GKD trading system look like? Example trading system: Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles Baseline: Hull Moving Average Volatility/Volume: Hurst Exponent Confirmation 1: Inertia as shown on the chart above Confirmation 2: Williams Percent Range Continuation: Fisher Transform Exit: Rex Oscillator Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain. Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm) Standard Entry 1. GKD-C Confirmation 1 Signal 2. GKD-B Baseline agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume agrees Baseline Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume agrees 6. GKD-C Confirmation 1 signal was less than 7 candles prior Continuation Entry 1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously 2. GKD-B Baseline hasn't crossed since entry signal trigger 3. GKD-C Confirmation Continuation Indicator signals 4. GKD-C Confirmation 1 agrees 5. GKD-B Baseline agrees 6. GKD-C Confirmation 2 agrees 1-Candle Rule Standard Entry 1. GKD-C Confirmation 1 signal 2. GKD-B Baseline agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean Next Candle: 1. Price retraced (Long: close < close or Short: close > close ) 2. GKD-B Baseline agrees 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume agrees 1-Candle Rule Baseline Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 1 signal was less than 7 candles prior Next Candle: 1. Price retraced (Long: close < close or Short: close > close ) 2. GKD-B Baseline agrees 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume Agrees PullBack Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is beyond 1.0x Volatility of Baseline Next Candle: 1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume Agrees █ GKD-C Inertia What is the Relative Vigor Index? The Relative Vigor Index (RVI) is a technical analysis indicator used to measure the strength of a trend in financial markets. It was developed by John Ehlers and first introduced in his book "Cybernetic Analysis for Stocks and Futures" in 2004. The RVI indicator is based on the concept that the strength of a trend can be measured by comparing the closing price of an asset to its opening price, and then smoothing out the resulting data with an exponential moving average (EMA). The indicator is calculated using the following steps: Calculate the difference between the closing price and the opening price for a given period. Calculate the high-low range for the same period. Divide the difference in step 1 by the high-low range in step 2. Calculate an EMA of the result obtained in step 3, usually using a period of 10. The resulting RVI value oscillates around a centerline of 0. If the RVI value is positive, it indicates that the closing price is higher than the opening price and that the bullish momentum is increasing. If the RVI value is negative, it indicates that the closing price is lower than the opening price and that the bearish momentum is increasing. Traders use the RVI indicator to identify changes in the momentum of a trend. When the RVI crosses above the centerline, it indicates that bullish momentum is increasing, and traders may look for opportunities to buy the asset. Conversely, when the RVI crosses below the centerline, it indicates that bearish momentum is increasing, and traders may look for opportunities to sell the asset. It is important to note that the RVI is not a standalone indicator, and traders usually use it in conjunction with other technical analysis tools to confirm signals and make trading decisions. What is The Least Squares Moving Average (LSMA) The Least Squares Moving Average (LSMA) is a technical analysis indicator used to identify trends and momentum in financial markets. It is based on the concept of linear regression analysis, which is a statistical method used to estimate the relationship between two variables. The LSMA indicator is calculated by fitting a linear regression line to the closing prices over a specified period of time. The slope of the regression line represents the trend, and the intercept represents the moving average. The LSMA indicator is a moving average of the regression line's intercept, and it is designed to be more responsive to changes in price than traditional moving averages. The LSMA indicator is calculated using the following steps: Determine the length of the moving average. This is the number of periods that will be used to calculate the LSMA. Calculate the slope and intercept of the linear regression line for the closing prices over the specified period of time. Calculate the LSMA using the intercept of the regression line and the length of the moving average. Traders use the LSMA indicator to identify trends and momentum in financial markets. When the LSMA is moving upward, it indicates an uptrend, and traders may look for opportunities to buy the asset. Conversely, when the LSMA is moving downward, it indicates a downtrend, and traders may look for opportunities to sell the asset. It is important to note that the LSMA is not a standalone indicator, and traders usually use it in conjunction with other technical analysis tools to confirm signals and make trading decisions. Additionally, the LSMA indicator can be subject to false signals during periods of market volatility, so traders should use caution when interpreting its signals. What is Inertia? Inertia applies Jurik Smoothing halfway through the calculation process to filter out noise thereby producing a cleaner output signal. What is Inertia? This indicator is the LSMA of RVI. This is one of various types of inertia used primarily in Forex trading but can be used for any time series financial data. Requirements Inputs Confirmation 1 and Solo Confirmation: GKD-V Volatility / Volume indicator Confirmation 2: GKD-C Confirmation indicator Outputs Confirmation 2 and Solo Confirmation Complex: GKD-E Exit indicator Confirmation 1: GKD-C Confirmation indicator Continuation: GKD-E Exit indicator Solo Confirmation Simple: GKD-BT Backtest strategy Additional features will be added in future releases.
Pine Script™ indicator
by loxx
Diego Riobo Cabot's Force Indicator Diego Riobo Cabot © riobocabotd Analysing the Market as Physical Forces Credits First: Tradingview Pine Comunity, it's just amazing, honestly. Godmode Indicator's creators. I was inspired by them to create an indicator that takes a lot of variables into account. I also took the idea of the Momentum and LSMA from there Function te get volume from lower tf was taken from a post in stack overflow. So, credits to you, anonymous hero. Let's get to it: so... What is this thing, exactly? I wanted to measure the market's upward and downard force, in order to calculate the resulting force. Just as a curiosity. At the end, I got a pretty decent indicator in my hands and I'd like to share it with you guys. The main goal was to apply basic rules of physics: Velocity, Acceleration, Mass and Force (We could go further if we wanted, such as Impulse, Quantity of Movement, Impact and so on) Everything appart from mass is a vector, meaning it has a direcction and a magnitude. Each of them were decompossed in upwards and downwards direction Nevertheless I pictured this Analysis as a "fight" between two teams the Bulls and the Bears (Buyers and Sellers). So I measured two masses: Bulls (+) and Bears(-) Glossary (internal Clockwork) ° Velocity: Is the ratio between a travelled distance and the time that took to travel it. + Upwards Velocity (v_up): Meausures if current source is higher than the previous and stores this value. Has positive values + Downwards Velocity (v_dn): Meausures if current source is lower than the previous and stores this value. Has negative values + Both vectors are averaged using the rma function (same average type used in the RSI) + The length of this average is called length_v: "Lookback - Velocity" + Resultant Velocity (v_av): The sum of the averaged v_up and v_dn, since they have equally opposite directions, there's no need for a vectorial sum. + Velocity Index (v_in): It's an index between +100% and -100%. Meausures where v_av stands in relation to high (v_up) and low (v_dn). Not used for calculations, but I'll leave it there for further research ° Acceleration: Meausures the rate of change of velocity during time. Since we already have the velocity calculated, it's pretty straight forward + Upwards Vel increase (v_up_up): Stores positive variations of upwards' velocity. + Upwards Vel decrease (v_up_dn): Stores negative variations of upwards' velocity. + Downwards Vel increase (v_dn_up): Stores positive variations of downwards' velocity. + Downwards Vel decrease (v_dn_dn): Stores negative variations of downwards' velocity. + Upwards Accel. (a_up): v_up_up + v_dn_up + Downwards Accel. (a_dn): v_up_dn + v_dn_dn + Resultant Accel. (a_av): a_up + a:dn Not used, is there for further research ° Mass: Measures the volume of operations. How much asset is bougth (Bull) or sold (bears). + Mass is measured from a lower timeframe. It checks if the candles are Bullish or Bearish (Could be done with closing prices, or typical price) + The Lower Timeframe is determined in minutes throught the input variable "Lower Timeframe" + Bull mass (vol_up): Total bullish volume in the lower timeframe, for the current candle period + Bear mass (vol_dn): Total bearish volume in the lower timeframe, for the current candle period + Neutral mass (vol_nt): Total neutral volume in the lower timeframe. (Buy price = Open price) Not used for calculations. Could be used for resistance points? + Resultant mass (vol_av): |vol_up - vol_dn| + Total mass (vol_tt): Sum of all masses (Just the total volume) ° Force: It's nothing else than mass * acceleration + Upwards Force (f_up): vol_up * a_up Bulls mass * Positive Acceleration + Downwards Force (f_dn): vol_dn * a_dn Bears mass * Negative Acceleration. + Resultant Force (f_av): f_up + f_dn Not used, is there for further research ° Force Index + Upwards Channel (fi_up) + Downwards Channel (fi_dn) + Both vectors are averaged using the rma function (same average type used in the RSI) + The length of this average is called length_v: "Lookback - Force" + Raw Index (fi_rw): It's an index between +100% and -100%. Meausures where f_av stands in relation to high (f_up) and low (f_dn). + Index (fi_in): It's the averaged raw index using the rma function and the "Force Index Smoothing" period + Signal (fi_sg): It's the averaged fi_in using the rma function and the "Force Signal Smoothing" period + Momentum (fi_mo): fi_in - f_sg. If the momentum is higher than the current force direction, current force should be outwon by previos market trend. It's Smoothed out using the "Force Momentum Lookback" + Trend (fi_tr): It's a linear regression of fi_in using a very long period (Force Trend Lookback) Okay... sure, but how do I use it? ° It is very similar to how the GodMode 3.2 indicator works actually, so if you're familiar with it, you can start trying this indicator out. I've noticed it can provide a bit more timely signals ° It's also similar to Stochastics or RSI indices... but with three lines. an instantaneous one (Force - Blue), an averaged one (Signal - Orange) and a slow one (Trend - Green) ° Bullish/Bearish momentum: Trendline (green) above 0% means Bullish. Above 12% means a trend wants to form and if it reaches 40% means the strend is super strong (Bitcoin like, strong). The opposite goes for bearish trends (values under 0) ° Line crossings: Instant Force Line (Blue) crosses over the Signal Line (Orange), while the orange is going slightly down or flat under the -12%: Means a long signal. The opposite applies for the Short signals ° Line crossings: Same as above, but when the Signal crosses over the Trend Line (Green) ° Reversals: The background columns are supposed to immitate the "Inertia" of movement. If inertia's bars are higher (when positive) or lower (when negative) than the Force Line (Blue), then it means that the current force the market is making, is probably weaker (at that time) than the inertia the market carries with it. Tips: ° If you wen't long, the orange line is going slightly down, but it's over +12%, it means the bullish trend is still going, although not as strong as before. You could keep your long position. The reverse applies for short.
Pine Script™ indicator
by riobocabotd
2
Combo Backtest 123 Reversal & Inertia Strategy This is combo strategies for get a cumulative signal. First strategy This System was created from the Book "How I Tripled My Money In The Futures Market" by Ulf Jensen, Page 183. This is reverse type of strategies. The strategy buys at market, if close price is higher than the previous close during 2 days and the meaning of 9-days Stochastic Slow Oscillator is lower than 50. The strategy sells at market, if close price is lower than the previous close price during 2 days and the meaning of 9-days Stochastic Fast Oscillator is higher than 50. Second strategy The inertia indicator measures the market, stock or currency pair momentum and trend by measuring the security smoothed RVI (Relative Volatility Index). The RVI is a technical indicator that estimates the general direction of the volatility of an asset. The inertia indicator returns a value that is comprised between 0 and 100. Positive inertia occurs when the indicator value is higher than 50. As long as the inertia value is above 50, the long-term trend of the security is up. The inertia is negative when its value is lower than 50, in this case the long-term trend is down and should stay down if the inertia stays below 50. WARNING: - For purpose educate only - This script to change bars colors.
Pine Script™ strategy
by HPotter
Bullish InertiaThe Bullish Inertia is an indicator that measures the strength of an asset with respect to its volatility, calculated as: Strength / Volatility = Bullish Inertia (BI) Parameters: Len1 = Length of ROC1 Len2 = Length of ROC2 Len3 = Length of the ATR //Spanish La inercia alcista es un indicador que mide la fortaleza de un activo respecto a su volatilidad, calculado como: Fortaleza / Volatilidad = Inercia Alcista (IA) Parametros: Len1 = Longitud de ROC1 Len2 = Longitud del ROC2 Len3 = Longitud del ATR
Pine Script™ indicator
by AlexanderRios
1
Inertia Indicator The inertia indicator measures the market, stock or currency pair momentum and trend by measuring the security smoothed RVI (Relative Volatility Index). The RVI is a technical indicator that estimates the general direction of the volatility of an asset. The inertia indicator returns a value that is comprised between 0 and 100. Positive inertia occurs when the indicator value is higher than 50. As long as the inertia value is above 50, the long-term trend of the security is up. The inertia is negative when its value is lower than 50, in this case the long-term trend is down and should stay down if the inertia stays below 50. You can change long to short in the Input Settings Please, use it only for learning or paper trading. Do not for real trading.
Pine Script™ strategy
by HPotter
Inertia Indicator The inertia indicator measures the market, stock or currency pair momentum and trend by measuring the security smoothed RVI (Relative Volatility Index). The RVI is a technical indicator that estimates the general direction of the volatility of an asset. The inertia indicator returns a value that is comprised between 0 and 100. Positive inertia occurs when the indicator value is higher than 50. As long as the inertia value is above 50, the long-term trend of the security is up. The inertia is negative when its value is lower than 50, in this case the long-term trend is down and should stay down if the inertia stays below 50.
Pine Script™ indicator
by HPotter
Inertia Indicator The inertia indicator measures the market, stock or currency pair momentum and trend by measuring the security smoothed RVI (Relative Volatility Index). The RVI is a technical indicator that estimates the general direction of the volatility of an asset. The inertia indicator returns a value that is comprised between 0 and 100. Positive inertia occurs when the indicator value is higher than 50. As long as the inertia value is above 50, the long-term trend of the security is up. The inertia is negative when its value is lower than 50, in this case the long-term trend is down and should stay down if the inertia stays below 50
Pine Script™ indicator
by HPotter