This Extreme (Expo) indicator identifies areas where the market is extreme. The length of the extreme calculation can be changed and gives you the flexibility to choose how sensitive the indicator should be. A longer length means that the indicator only identifies bold extremes. A shorter length is more sensitive and thus identifies all extremes in the market.
When the market is in an extreme mode, keep your trade until the extreme mode ends.
Postive extreme is when the price is above the positive extreme lines. (Keep your long trade until the positive extreme ends).
Negative extreme is when the price is below the negative extreme lines. (Keep your short trade until the negative extreme ends).
The Extremes (Expo) can be used to visualize the trend. Price crossing indicates a directional change. Price can also bounce off the extremes lines, which can act as dynamic . It is often used in combination with other signals and analysis techniques.
The indictor has a Trend- feature that can be switched on which identifies trend shifts as well as trend direction.
A positive trend is when all three are green, and when the price is at least above one of these three lines.
A Negative trend is when all three are red, and when the price is at least under one of these three lines.
When the color of the changes color it indicates that the trend might shift direction. When all three have shifted color a trend is established.
A bonus feature that is added to the trend-setting is that it can detect pullbacks in trends. This is visualized by that one of the three change color. For instance, say that all 3 lines are red (negative trend) and one of these lines changes color to green it can be regarded as a pullback in the negative trend.
HOW TO USE
1. Use the indicator to identify extreme areas.
2. Use the indicator to identify trends.
3. Use the indicator to identify trend shifts.
4. Use the indicator to identify pullbacks in trends.
INDICATOR IN ACTION
TREND & PULLBACK
I hope you find this indicator useful, and please comment or contact me if you like the script or have any questions/suggestions for future improvements. Thanks!
I will continue to work on this indicator, so please share your experience and feedback with me so that I can continuously improve it. Thanks to everyone that have contacted me regarding my scripts. Your feedback is valuable for future developments!
ACCESS THE INDICATOR
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