CooperHoang

Willams %R extreme and MACD Divergence

386 13 20
This is two different indicators combine into one.

First is the two different period of Williams% 5 mins and 15 mins.
Second is the MACD line of 5 mins chart.
Both will be primarily use on the 5 mins chart, you can use on another time frame if you wish

Williams %:

green = uptrending
red = downtrending

Bright green: overbought condition, look to Short at the end of the signal
Bright Red: oversold condition, look to Long at the end of the signal

MACD:
I also added the MACD line which you can use for divergence
when price move higher and MACD is moving down, expecting price to drop sometime soon or vice versa. See chart for example.

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study(title="Willams %R", shorttitle="%R & MACD")
length = input(14, minval=1)
upper = highest(length)
lower = lowest(length)
out = 100 * (close - upper) / (upper - lower)

length1 = input(42, minval=1)
upper1 = highest(length1)
lower1 = lowest(length1)
out1 = 100 * (close - upper1) / (upper1 - lower1)
bgUp  = (out > -20 and out1 > -20) ? green : na
bgDown =(out < -80 and out1 < -80) ? red : na
bgUp1  = (out > -50 and out1 > -50) ? green : na
bgDown1 =(out < -50 and out1 < -50) ? red : na

bgcolor (bgUp, transp=00)
bgcolor (bgDown, transp=00)
bgcolor (bgUp1, transp=50)
bgcolor (bgDown1, transp=50)

fastLength = input(12)
slowlength = input(26)
MACDLength = input(9)

MACD = ema(close, fastLength) - ema(close, slowlength)
aMACD = ema(MACD, MACDLength)
delta = MACD - aMACD

plot(MACD, color=blue, title="MACD")
CooperHoang PRO
4 months ago
One change I want to add to this are these two lines

bgUp = (out > -10 and out1 > -10) ? green : na
bgDown =(out < -90 and out1 < -90) ? red : na
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JohnKer PRO
4 months ago
So have you tried this in real trading on a 4 hour chart, or a day chart, or a weekly chart?
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CooperHoang PRO JohnKer
4 months ago
no John, so far only paper trade, only tried on 5 minutes chart
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JohnKer PRO CooperHoang
4 months ago
Ok, looking over your indicator it looks good. One issue though is how do you filter out the double signals? Where it gives a say, buy signal, but then price goes lower and it gives another buy signal? Any suggestions?
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CooperHoang PRO JohnKer
4 months ago
You can combine this indicator of mine, when both confirmthe same. it is pretty close to accurate in predicting the direction
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CooperHoang PRO CooperHoang
4 months ago
CCI Extreme and OBV Divergence
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CooperHoang PRO CooperHoang
4 months ago
You can see in this example. Divergence confirmed the next expected move which is DOWN, then there is a overbought signal and look what happens, price move down before US open. ONCE US open at 8:30, there is high volume for the green candle signal smart money is moving market up, any price below this candle is pretty much free money. You would then wait for the price go become over sold, then BUY to ride it up for a huge profit...
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JohnKer PRO CooperHoang
4 months ago
Very interesting work, I'll study it more and maybe try a few small trades. Thank you for your effort and responses.
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CooperHoang PRO JohnKer
4 months ago
You welcome mate. Please let me know if you run into any issue so I can tweak it if needed.
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JohnKer PRO CooperHoang
4 months ago
What is the indicator of the large green and red bars behind price?
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CooperHoang PRO JohnKer
4 months ago
That is the CCI-240 period on the 5 minutes chart. it is basically telling me if the price is being overbought in the longer trend and if all 3 indicators is giving the same signal plus divergence of either MACD or OBV is a super strong signal of reversal. But again you can use all of mine indicator here to pre-screen. I only recommend trading on U.S. open and also try to use my single zone recovery method here. It is a calculated Martingaling. But should be tweak to meet your risk tolerance.

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CooperHoang PRO CooperHoang
4 months ago
https://docs.google.com/spreadsheets/d/13r9G7FkK-dV2N10SA5YWHgeMElP266HeVCDHHl_qMzE/edit#gid=0
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CooperHoang PRO CooperHoang
4 months ago
with recovery zone. I recommend only risk max 2% of equity in the 5th of the trade sequence. 2 points recovery zone, 6 points target
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