[RS]Vector Flow Channel V1

small update: added ability to setup stage 2 length period.
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study(title="[RS]Vector Flow Channel V1", shorttitle="[RS]VFC.V1", overlay=true)
decay = atr(10)*0.005
stage1 = input(5)
stage2 = input(10)
stage3 = input(20)
stage1length = input(100)
stage2length = stage1length + input(100)
pretopvector01 = nz(topvector01[1], close)
topvector01 = close >= pretopvector01 ? close : pretopvector01 - (decay * topvector01finalcounter[1])
topvector01counter = n - valuewhen(close >= topvector01, n, 0)
topvector01finalcounter = topvector01counter <= stage1length ? stage1 : topvector01counter <= stage2length ? stage2 : stage3

prebotvector01 = nz(botvector01[1], close)
botvector01 = close <= prebotvector01 ? close : prebotvector01 + (decay * botvector01finalcounter[1])
botvector01counter = n - valuewhen(close <= botvector01, n, 0)
botvector01finalcounter = botvector01counter <= stage1length ? stage1 : botvector01counter <= stage2length ? stage2 : stage3

pt = plot(topvector01, color=(topvector01 == close ? na : black))
pb = plot(botvector01, color=(botvector01 == close ? na : black))
fill(pt, pb, color=blue, transp=90)
Interesting indicator...I presume you can consider the lines as dynamic s/r or channels and wait for them to act as that when revisiting them.
yes, intended behavior would be that, i made a faster response version of this for lower time frames ;)
The River Flows Downstream
IvanLabrie PRO RicardoSantos
Lower timeframes are for crazy people...:D


Some lines are working, but could be my brain's thirst for pattern recognition.
IvanLabrie PRO IvanLabrie
I'm more confident in my hand charted levels though:

BoonOng IvanLabrie
Interesting chart indicator. That require a lot of focus =)
Does this Daily EURUSD saying it is meeting the support level? somwhere near your 1.24480
What do you mean?
There's a low volume area around price right now...intensely oversold, I expect a retracement.
IvanLabrie PRO IvanLabrie
(that chart was an old chart, the 1.2448 support one...in a downtrend, older support can slow price down, but it won't stop it until you see a clear consolidation and reversal, or an instant rejection). I don't take trades without confirmation of my forecast.
to be honest i would see confluences of this indicator lines and price as breaking pressure points (inverse SR?), i think this makes more sense to what is displayed. ;)
BoonOng IvanLabrie
Yeah, i was referring the top chart which i mistakenly hit the wrong one.
Apology for confusion. =)

Ricardo your Vector Flow Channel is very interesting. Could you please explain the theory behind it?
RicardoSantos PRO dave.seremek
i suppose i could say some crazy stuff like "imagine that price is like a leaf in the river of time flowing with the current and being dragged by the wind" to sound smart lol...
but in truth its a visual perception trick caused by the brain. support and resistance is as a reactionary effect of human psychology nature?
i suppose im really bad at explaining stuff lol
what indicator is this based on? Regression?
yes this is based on linear regression
DavidTrades RicardoSantos
Thanks, this is actually very useful for me. Much more than just chart art.
isomorph RicardoSantos
no offense, but how is it based on regression? there is no regression computation in the code.
my apologies, poorly used term :s
it would likely make more sense as mean regression.
isomorph RicardoSantos
ok no worries. could you please explain a little more about the origin of the algorithm? is this something you found on some site like stockcharts.com or investopedia? or is it your idea and if so, what is the main rationale behind it?

i ask because i am puzzled by this notion of using atr as a decay factor. in other words, why? why think of atr as 'decay'?
not at all, is mostly inspired by sar and gann fan's visual appearance, the rationale is the perception of price decay over time.

the atr was just a means to a end, it could be very well an input, pip or other unit of measurement.
isomorph RicardoSantos
ok thanks. in your testing, what did you find out regarding the usefulness of study VFC for TFs < daily?
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