Indicator Project Description:
*** This is a trend following indicator alert that uses fast QQE crosses with Moving Averages for trend direction filtering. QQE or Qualitative Quantitative Estimation is based on the , but uses a smoothing technique as an additional transformation. Three crosses can be selected (all selected by default):
- RSI signal crossing ZERO (XZERO)
- RSI signal crossing Fast RSIatr line (XQQE)
- RSI signal exiting the Threshhold Channel (BUY/SELL)
- For BUY alert the Close must be above the fast MA and
fast MA (EMA8) > medium MA (EMA20) > slow MA (SMA50).
- For SELL alert the Close must be below the fast MA and
fast MA (EMA8) < medium MA (EMA20) < slow MA (SMA50).
- For BUY alert the Close must be above the slow MA (SMA50) and the directional MA (EMA20) must be green.
- For SELL alert the Close must be below the slow MA (SMA50) and the directional MA (EMA20) must be red.
Note: I have found the XQQE cross can also be quite good alert for BUY/SELL as well, particularly in direction of current trend. The XZERO I have found to be totally unreliable for BUY/SELL alerts.
This indicator should work on any currency pair, most chart timeframes and expiry in 3 to 6 candles for binary option trading. For hourly or longer charts expiry can be longer for binary options, or if available use standard forex trading techniques
Some Hints for using this indicator:
- Avoid taking trades in non-trending market, this is normally indicated by a near Horizontal SMA50 line.
- Avoid trading when all the moving averages are close together.
- When trading 1min and 5min charts, expiry should set to 1-3 candles.
- Avoid trading when market choppy, this is normally indicated by the fast EMA8 crossing the EMA20 back and forwards quickly.
- High probability trades tend to occur when you get a XQQE followed by a XZERO and then BUY/SELL in the same direction of trend.
- Don't trade near nor directly on any major market news (sometime better no trade day).
- Please practise this system in DEMO first, before committing any real money. Be patient the more you practise the better and more confident you will be.
- Added implied GPL copyright notice.
- Changed defaults to use HullMAs instead of EMAs.
- Option for No repaint on BUY/SELL alert (Use Shunt), however, now trades should be taken when the BUY/SELL Alert is displayed. The alarm is still generated on the previous candle so you can still get a pre-warning, this enables you time to analyse the pending alert and can be controlled by the TradingView Alarm subsystem.
- Changed some labeling names and colours.
- Converted to version3 Pinescript.
- Added extra alarms for each alert type.
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.