This System was created from the Book "How I Tripled My Money In The
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 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 Fast Oscillator is higher than 50.
This indicator plots the moving average described in the January, 1998 issue
of S&C, p.57, "Smoothing Techniques for More Accurate Signals", by Tim Tillson.
This indicator plots presented in Figure 4 in the article.
T3 indicator is a moving average which is calculated according to formula:
T3(n) = GD ( GD ( GD (n))),
where GD - generalized ( ) and calculating according to this:
GD (n,v) = (n) * (1+v)-EMA( (n)) * v,
where "v" is factor, which determines how hot the moving average’s response
to linear trends will be. The author advises to use v=0.7.
When v = 0, GD = , and when v = 1, GD = . In between, GD is a less aggressive
version of . By using a value for v less than1, trader cure the multiple
overshoot problem but at the cost of accepting some additional phase delay.
In filter theory terminology, T3 is a six-pole nonlinear Kalman filter. Kalman
filters are ones that use the error — in this case, (time series - (n)) —
to correct themselves. In the realm of , these are called adaptive
moving averages; they track the time series more aggres-sively when it is making large
moves. Tim Tillson is a software project manager at Hewlett-Packard, with degrees in
mathematics and computer science. He has privately traded options and equities for 15 years.
- For purpose educate only
- This script to change bars colors.
USDT (TRC20): TH29EEXa19vfwZNYvxdUuMxoFY5QDYLcWG
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.