This System was created from the Book "How I Tripled My Money In The
Futures 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 Stochastic 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 Stochastic Fast Oscillator is higher than 50.
This is one of the techniques described by William Blau in his book
"Momentum, Direction and Divergence" (1995). If you like to learn more,
we advise you to read this book. His book focuses on three key aspects
of trading: momentum, direction and divergence. Blau, who was an electrical
engineer before becoming a trader, thoroughly examines the relationship
between price and momentum in step-by-step examples. From this grounding,
he then looks at the deficiencies in other oscillators and introduces some
innovative techniques, including a fresh twist on Stochastics. On directional
issues, he analyzes the intricacies of ADX and offers a unique approach to help
define trending and non-trending periods.
Blau`s indicator is like usual MACD, but it plots opposite of meaningof
stndard MACD indicator.
- For purpose educate only
- This script to change bars colors.
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.