ChrisMoody

CM ATR PercentileRank - Great For Showing Market Bottoms!

AMEX:SPY   SPDR S&P 500
When Increased Volatility to the Downside Reaches Extreme Levels it’s Usually a Sign of a Market Bottom.

This Indicator Takes the ATR and uses a different LookBack Period to calculate the Percentile Rank of ATR Which is a Great Way To Calculate Volatility

Be Careful Of Using w/ Market Tops. Not As Reliable.


***Ability to Control ATR Period and set PercentileRank to Different Lookback Period

***Ability to Plot Histogram Just Showing Percentiles or Histogram Based on Up/Down Close

Fuchsia Lines = Greater Than 90th Percentile of Volatility based on ATR and LookBack Period.
Red Lines = Warning — 80-90th Percentile
Orange Lines = 70-80th Percentile

Other Useful Indicators

Williams Vix             Fix


CM_RSI EMA Is a Great Filter for Williams Vix             Fix

I played around with it. Let's see what this harmonic signal means:

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ChartArt ChartArt
Pure chart without my line drawing:

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Can this be used for individual stocks or only for markets? Thanks
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strange - can't find the button to add this to favorite scripts?
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Hi Chris,
I use PPO over ADX to seek lows with possible reversals, when the distance (graphically, on the chart) between the top of ADX and the low of the PPO (or also MACD) is at a minimum then there is a good chance that prices will rise upward. If one thinks at the meaning of ADX and PPO it makes sense, I think.
Can you combine your ATR metho with this one I have described?
unfortunately I cannot program scripts.
Thanks
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guidoisot,

First Thanks for the post. I'm no way knocking your method....however I'm very familiar with both indicators and they show something completely different. PPO is a Oscillator that is great at Identifying waves in range bound markets. The ADX measures strength of trend...therefore it looks great in Range bound markets like the chart you have above...but in extreme trending markets it can stay pegged at high values for a long time.

The chart below looks cluttered but I put the Williams Vix Fix and the ATR Percentile on top. These both measure volatility in slightly different ways. I've found that there is no better "Tell" that a market is oversold than when you get extreme volatility on down moves. It's simply retail traders frantically closing there positions...and professionals come in and take advantage of the "Fear". However, they are only reliable at targeting bottoms.

I used the exact settings you have on your charts and under each indicator created a PercentRank of the extreme moves. You'll see they catch a couple of the bottoms. but not with the same accuracy as the two top indicators. However, I did notice that they are much better at signaling TOPS when I put them on the Gold Futures contract. I'll post that chart below. Just ignore the "Bottoming" Signals they show and look at the "Highs" they Pinpoint!!!

Thanks to your post in the next few days I'll code them based on a percentRank and filter out the bottoms, and just show the TOPS. Using one of the upper indicators to Pinpoint Lows, and the new indicator I'll create using the PPO and ADX to pinpoint HIGHS....may turn out to be a perfect combination... We will see..

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ChrisMoody PRO ChrisMoody
Taking a closer look....I like the PPO Percentile....and visually I see a clear entry signal. I'll post the results here when I'm done.

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guidoisot ChrisMoody
Sounds great. I do have to read again your msg again a couple of times ..... anyway Thanks. My attitude in searching these bottom candidates has been quite empirical but I found that 2more or less" it works ok many times. for example if you look at the list of stocks herebelow, I did select on early august, most of them turned up well. too bad I did not take all those trades.. , BA, MON, UTX, UPS, MCD, AXP, VIAB, WMT, QCOM, DD, CL, EMR, WAG, PCAR, KRFT, AIG, MET, WFC, ADI, TXN, MYL, FAST, LLTC, CTSH, EXPD, KO, ALTR, GM, EXC, RCII, GE, CSCO, BVN
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2use ChrisMoody
Is this your usual set that you follow?
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2use ChrisMoody
PPO reacts to both bottoms and tops doesnt it? Coupled with VixFix seems a great thing to have
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