Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX
Description
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The "AC-P" version of the Derivative Oscillator is my personal customized version of Constance Brown's Derivative Oscillator (using Everget's implementation of it as the base), with the the following modifications and additions:
VWAP Indication - option to show whether the price input option is above or below the Daily VWAP (red triangles = price input is below vwap, green triangles = price input is above vwap)
Bullish and Bearish phases from shayankm's Waddah Attar Explosion V2 (tradingview.com/script/d9IjcYyS-Waddah-Attar-Explosion-V2-SHK/) is included as indication dots (bullish = blue dots, bearish = yellow dots) below/above the Derivative Oscillator histogram
Input source options for vwap, Waddah components (MACD, Bollinger Upper/Lower)
Centerline option for Coral trend, and Horizontal center option for the Derivative Oscillator with circle indication (optional - provided as option for flexibility in use with overlaying with other indicators)
This indicator is a hybrid, with a combination of leading indicators and lagging trending indicators combined into one. Specifically, a few of the other indicators I use are lacking in the momentum and trend department, and this is one of the indicators I use to address that: * VWAP provides trend information on lower timeframes from a high timeframe interval (D) * Coral Trend provides additional confirmation to VWAP trend wise, and is adjustable * Waddah Attar Explosion provides a third level of confirmation for trending moves, taking into account shorter and longer timeframes (FastEMA and SlowEMA parameters).
Source attribution to Constance Brown for the Derivative Oscillator formula/indicator: *// Brown, Constance. *// Reference 1: “The Derivative Oscillator: a New Approach to an Old Problem,” Journal of Technical Analysis (Winter-Spring 1994) 45–61. *// Reference 2: Technical Analysis for the Trading Professional. New York, NY: McGraw-Hill, 1999.
This is an excellent indicator! I use VWAP and Waddah. Putting these together and adding the other components really give a great view of the momentum in the market. I was thinking that adding a way to indicate slope of higher TF VWAP may prove to be an extra way of determining dominant trend direction. What do you think about that? Anyways, great script. Keep sharing your excellent work with the community my friend. Cheers!
auroagwei
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@blakester1111, adding slope detection for the D vwap/HTF vwap would probably be a solid addition - great suggestion, will have to look into it. If you've got any suggestions script or implementation wise let me know
komogisa
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@blakester1111, How do I interpret the graph?
How do I know when to short, long and to take profit?
Orph5781
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wonderful work! thanks! could you please include entry/exit signals with its corresponding alarm? thanks
lclira
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Would be great if you could add the option to overlay the RSI on top of it on the next update. Thanks!
komogisa
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How do I interpret the graph?
How do I know when to short, long and to take profit?
Raja11
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Great Job !
Works very well on the lower time frame!
auroagwei
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@Raja11, as with all indicators, you're supposed to adjust accordingly to your timeframe and asset - while the defaults may work on LTF for some asset classes and pairs, it's not exempt from the adjustment/tuning/backtesting process for all indicators in a trading system
komogisa
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@Raja11, Hi Raja do you know how to interpret the Derivative Oscillator?