7 Closes above/below 5 SMAThis script looks for 7 consecutive closes above/below the 5-period SMA. The indicator is inspired by legendary trader Linda Raschke's work.
Usage
The script can can be used in three main ways. I think you will find more uses.
First are the two models for which the indicator was created, both inspired by Raschke:
1) Persistency of trend / Extended run setup.
Around 10-12 times per year we get a persistency of trend in instruments in general.
After 7 consecutive closes above/below the 5-period as price pulls back we can look to enter in the direction of the main trend as it moves up/down above/below 5 ma again. You should use price action trading to pinpoint the entries. Now try to hold this as long as possible. Way longer than you can percieve or think is possible. Up to 24-28 periods is what we are looking for in these cases.
2) Normal usage.
When the trend is not persistent, it is possible to use this as an oscillating signal, for a shorter term trade, where we can look for a short or long term reversal setup in price action.
3) I also use it at as a learning to see the swing trades clearer. You can also use it as a visual aid for developing new variances of the classic swing trading setup.
Read and listen to Linda Raschkes work to learn more.
TIme frames
The principles works in all time frames but may change depending on calendar differences. We will see more instances/year in shorter time frames.
Why closes above the 5 SMA
As you may or may not know the 5 SMA is a very important indicator. You can think of it like this, If price is above 5, it is innocent until proven guilty but if price is below 5 we use the french law system which means it is guilty until proven innocent. 7 closes above 5 is a very good predictor of possible short term direction changes.
Use together with:
I prefer to use this indicator together with either regular SMA:s, one short and one macro term. For example 10 ma and 100 ma.
Or you can use it with a a Hull 21-period MA together with a 240-period WMA.
Settings:
I added settings so you can change preferences for changing shape, where to display the shape and in what color
Visual aid
I wanted to keep one dot for each consecutive day, this way we will get a grouping of days and dots. The amount in this group can be of use in itself to inform you of the strength of trend. This can inform you if this oscillation predicts a short term eversal or a continuation. You need skills in reading price action to use this to your advantage.
Raschke
Indicator: Raschke Compase [xQT5]This is an indicator from a book "Street Smarts—High Probability Short Term Trading Strategies" by L. Raschke & L.Connors.
I made it in histogram style for more comfortable reading chart:
- green histogram is buy signal or buy opportunity;
- red histogram is sell signal or sell opportunity;
- gray histogram is forward moving from last signal.
Enjoy it!
Filtered Waves [NXT2017] #Linda Raschke #basics on Arthur MerrilHI BIG PLAYERS,
this script I wrote for an enquiry of a tradingview-user. It should represent the Filtered Waves idea from Arthur Merril and used by Linda Raschke.
It's similar like a visualization of Elliott Waves.
On YouTube title "MTA UK Chapter Presentation with Linda Raschke" between 34-36 minutes Linda Raschke shows the rules for her Filterd Waves.
Any questions? Ask me!
King regards
NXT2017
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TO MY PERSON
I'm the second winner of the official German Forex Trading Competition in 2018.
Look here to the ranks:
deutsche-trading-meisterschaften.de
I speak german, english and russian.
My strength in trading are Wolfe Wave pattern.
Keltner Channels Linda RaschkeThis channel is a second version designed by the famous american analyst Linda Raschke; it allows you to find the main trend and to implement a trend-following strategy. You can open a new long/short position when the price cross up the basis and the upper/lower band (jointly with other indicators).
3/10/16 Oscillator + HistogramThe MACD indicator is very useful when thinking of it in terms of momentum and trend and not as a holy grail.
"The 3-10 oscillator is 'something I’ve been using since 1981," Raschke says. "It’s the difference between a three-day simple moving average and a 10-day simple moving average. Plus, there’s a second line which is a 16-period simple moving average of the 3-10 line."
Read these for more information the 3/10 Oscillator usage:
www.netpicks.com
lindaraschke.net
I've added the Awesome Oscillator as an extra filter for trend direction.
The coloring is helpful but keeping an eye on the general trend of the oscillators is important to filter noise.
Bar color triggers:
Signal line (white line) crosses over 0 => green
Signal line (white line) crosses under 0 => maroon
Oscillator (lime/red line) cross over signal line => blue
Oscillator (lime/red line) cross under signal line => yellow
Oscillator (lime/red line) uptrending => continuous aqua
Oscillator (lime/red line) uptrending => continuous peach
Awesome Oscillator's current close is trending upward compared to its close from 5 bars back => continuous lime
Awesome Oscillator's current close is trending downward compared to its close from 5 bars back => continuous red
Background color triggers:
Oscillator (lime/red line) cross over 0 => single lime highlight
Oscillator (lime/red line) cross under 0 => single red highlight
Awesome Oscillator cross over 0 => single green highlight
Awesome Oscillator cross under 0 => single maroon highlight
Awesome Oscillator's current close is trending upward compared to its close from 5 bars back => lime highlight
Awesome Oscillator's current close is trending downward compared to its close from 5 bars back => red highlight
LBR OscillatorOscillator used by Linda Bradford Raschke.
Basicly it's a MACD with 3/10/16 settings but without the histogram (difference between fast and slow line), instead the shown histogram is based on the fastline (green bars = fastline above zero). The color of the lines will tell you if the line is falling (red) or rising (green).
In terms of setups dont just buy or sell if a line is changing its color. Look for divergences or setups like first cross or anti.
