This does a strange calculation I came up with involving MA cross averaged between two periods of time in order to place Voodoo dolls (maroon crosses) on a . I'd guess it's a trending indicator. What's cool about it is (when it works) It tries to predict decision times far into the future. These are usually small price swings or times the market is anticipating a push/pullback.
Whether buy or sell, these timing predictions or moments of likely direction change seem like they could come in handy.
The Voodoo dolls are drawn along a special moving average. It is actually an average of two different moving averages and offsets intended to differentiate signals from market noise. The symmetry helps graph expected trend behavior across different time frames. Significant widening of the gap (divergence) with the "mouth" curving outwards is a sign of pullback.
This is a standard 9 / 30 moving average with green fill.
Dips and Rips
As an added bonus, I have included a rip detector that puts up green and red circles whenever the price dips or rips away from the . These can be used, along with , , and such, in order to detect buy and sell times.
MA Voodoo comes with absolutely no warrantee. Obviously, this would best be used with other indicators as part of a comprehensive trading strategy.
study(title="RSI Buy Sell", shorttitle="RSI BS", overlay=false)
// Copyright (C) 2014 Henry Kroll http://www.thenerdshow.com
// Licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.
length1 = input(title="Length1", type=integer, defval=7, minval=3, maxval=200)
uline = input(title = "upper line", type=integer, defval=70, minval=0, maxval=100)
lline = input(title = "lower line", type=integer, defval=30, minval=0, maxval=100)
k = rsi(close,length1)
p3 = plot(k, style=line, linewidth=2, color=white)
l1=hline(uline, title='lower', color=blue, linestyle=dotted, linewidth=2)
l2=hline(lline, title='lower', color=blue, linestyle=dotted, linewidth=2)
buy = k < lline ? k : na
sell = k > uline ? k : na
plot(buy, style=circles, linewidth=5, color=green)
plot(sell, style=circles, linewidth=5, color=red)