Particle Physics Moving AverageThis indicator simulates the physics of a particle attracted by a distance-dependent force towards the evolving value of the series it's applied to.
Its parameters include:
The mass of the particle
The exponent of the force function f=d^x
A "medium damping factor" (viscosity of the universe)
Compression/extension damping factors (for simulating spring-damping functions)
This implementation also adds a second set of all of these parameters, and tracks 16 particles evenly interpolated between the two sets.
It's a kind of Swiss Army Knife of Moving Average-type functions; For instance, because the position and velocity of the particle include a "historical knowlege" of the series, it turns out that the Exponential Moving Average function simply "falls out" of the algorithm in certain configurations; instead of being configured by defining a period of samples over which to calculate an Exponential Moving Average, in this derivation, it is tuned by changing the mass and/or medium damping parameters.
But the algorithm can do much more than simply replicate an EMA... A particle acted on by a force that is a linear function of distance (force exponent=1) simulates the physics of a sprung-mass system, with a mass-dependent resonant frequency. By altering the particle mass and damping parameters, you can simulate something like an automobile suspension, letting your particle track a stock's price like a Cadillac or a Corvette (or both, including intermediates) depending on your setup. Particles will have a natural resonance with a frequency that depends on its mass... A higher mass particle (i.e. higher inertia) will resonate at a lower frequency than one with a lower mass (and of course, in this indicator, you can display particles that interpolate through a range of masses.)
The real beauty of this general-purpose algorithm is that the force function can be extended with other components, affecting the trajectory of the particle; For instance "volume" could be factored into the current distance-based force function, strengthening or weakening the impulse accordingly. (I'll probably provide updates to the script that incoroprate different ideas I come up with.)
As currently pictured above, the indicator is interpolating between a medium-damped EMA-like configuration (red) and a more extension-damped suspension-like configuration (blue).
This indicator is merely a tool that provides a space to explore such a simulation, to let you see how tweaking parameters affects the simulations. It doesn't provide buy or sell signals, although you might find that it could be adapted into an MACD-like signal generator... But you're on your own for that.
Resonance
L2 Composite BB-RSI-SMA-Stoch and VolumeLevel: 2
Background
Commonly we cannot use signal indicator to disclose the nature of market. By using multiple indicator resonance, the confidence level of trading is increased. The selection of proper ingredients is important to guarantee a good results.
Function
L2 Composite BB-RSI-SMA-Stoch and Volume script likes a Pizza that you can put your favorite ingredients and condiments. In my menu, there are basic indicators as below:
Bollinger bands are envelopes with a standard deviation above and below a simple moving average of price. Since the spacing of the bands is based on the standard deviation, they adjust to the fluctuations in volatility in the underlying price.
The Relative Strength Index (RSI) developed by J. Welles Wilder is a pulse oscillator that measures the speed and change of price movements. The RSI hovers between zero and 100.
A simple moving average (SMA) is an arithmetic moving average that is calculated by adding up current prices and then dividing by the number of time periods in the calculation average.
A stochastic oscillator is a momentum indicator that compares a certain closing price of a security with a range of its prices over a certain period of time. The sensitivity to market movements can be reduced by adjusting this time period or by taking a moving average of the result.
Volume meters are the ones that make up the volume, usually an underestimated indicator.
Key Signal
Composite signal is simple and difficult to describe the overall function. By simple logic "and", "or", you can filter out the noise and disclose the real market trend.
Pros and Cons
Pros:
1. Higher confidence level for trading due to indicator resonance effect.
2. Incl. long, short, and close, three types of signal.
3. Easy to migrate and adapt to various markets.
Cons:
1. Highly emphasized on long signal, for short signal is a little bit weak.
2. Only use for trading pairs with volume information. Indice is not applicable.
3. Although I tried to use a set of "Golden Parameters", it still need to be tuned along different markets, time frame upon situations.
4. It is complex if you are wondering to introduce new indicator together with them. A lot of efforts may be needed.
Remarks
The opinions of most people in the market may not be correct, but the opinions of most indicators are closer to correct.
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
Fractal Resonance Super Guppy v1!!!!!!! SUPER NOTICE !!!!!!
This script is not my work. It is a combination of
Pythagoras_Fractal Resonance Bar
and
JustUncleL Super Guppy
!!!!!!! SUPER NOTICE !!!!!!
The idea was, I like the two indicators and wanted to combine them to see what it looked like. It's an experimental script made years ago that am posting now because people were interested after seeing how pretty it made some charts. Intend to make a version 2 of this script with some added context to the EMA to give it a better looking 3D effect.
