ChrisMoody

Custom Indicator Clearly Shows If Bulls or Bears are in Control!

The Two Versions of this Indicator I learned from Two Famous and Highly Successful Traders. This Indicator shows With No Lag Clear Up and Down Trends in Market by Documenting Clearly If Bulls or Bears are in Control. The Version In SubChart 1 Shows Consecutive Closes if the Current Close is Greater than of Less than the Midpoint of the Previous Bar (Why Midpoint Explained in Detail in 1st Post). The Version in SubChart 2 Shows Consecutive Closes that are Greater than or Less Than the Previous Close (Will Discuss Specific Uses in 1st Post). Works on Stocks, Forex, Futures , on All Timeframes.
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study(title="CM_TotalConsecutive_Up_Down_V2", shorttitle="CM_TotalConsec_Up_Down_V2", overlay=false)

dopm = input(true, title="Check = Use Midpoint, UnCheck = Use Prev Close")
dohbM = input(false, title="Highest Bar Look Back Period - Using Midpoint?")
dohbC = input(false, title="Highest Bar Look Back Period - Using Close?")
dostM = input(false, title="Standard Dev - Using Midpoint?")
dostC = input(false, title="Standard Dev - Using Close?")
domaM = input(false, title="Moving Average - Using Midpoint?")
domaC = input(false, title="Moving Average - Using Close?")
hlength = input(4, minval=1, title="Horizontal Line")
length2 = input(50, minval=1, title="Highest Bar Look Back Period")
length4 = input(50, minval=1, title="Standard Dev Length")
length5 = input(2, minval=1, title="Standard Dev Multiple")
length3 = input(20, minval=1, title="Moving Average length")


down_BarC = close > close[1]
up_BarC = close < close[1]

down_BarM = close > hl2[1]
up_BarM = close < hl2[1]

//percentrank = percentrank(barssince(down_Bar), 50)/10
avg_Down = sma(barssince(down_BarM), length3)
avg_Up = sma(barssince(up_BarM), length3)
avg_DownC = sma(barssince(down_BarC), length3)
avg_UpC = sma(barssince(up_BarC), length3)

stdevdm = stdev(barssince(down_BarM), length4)*length5
stdevum = stdev(barssince(up_BarM), length4)*length5
stdevdC = stdev(barssince(down_BarC), length4)*length5
stdevuC = stdev(barssince(up_BarC), length4)*length5

plot(dopm and barssince(down_BarM) ? barssince(down_BarM) : barssince(down_BarC), title="Price Down Based On Midpoint or Close", color=red, style=histogram, linewidth=3)
plot(dopm and barssince(up_BarM) ? barssince(up_BarM) : barssince(up_BarC), title="Price Up Based On Midpoint or Close", color=lime, style=histogram, linewidth=3)
plot(dohbM and highest(barssince(down_BarM), length2) ? highest(barssince(down_BarM), length2) : na, title="Highest Down Bar Lookback - Midpoint", color=red, linewidth=4)
plot(dohbM and highest(barssince(up_BarM), length2) ? highest(barssince(up_BarM), length2) : na, title="Highest Up Bar Lookback - Midpoint",color=lime, linewidth=4)
plot(dohbC and highest(barssince(down_BarC), length2) ? highest(barssince(down_BarC), length2) : na, title="Highest Down Bar Lookback - Close",color=red, linewidth=4)
plot(dohbC and highest(barssince(up_BarC), length2) ? highest(barssince(up_BarC), length2) : na, title="Highest Up Bar Lookback - Close",color=lime, linewidth=4)
plot(dostM and stdevdm ? stdevdm : na, title="StdDev of Down Bars - Midpoint",color=red, linewidth=4)
plot(dostM and stdevum ? stdevum : na, title="StdDev of Up Bars - Midpoint",color=lime, linewidth=4)
plot(dostC and stdevdC ? stdevdC : na, title="StdDev of Down Bars - Close",color=red, linewidth=4)
plot(dostC and stdevuC ? stdevuC : na, title="StdDev of Up Bars - Close",color=lime, linewidth=4)
plot(domaM and avg_Down ? avg_Down : na, title="MA of Down Bars - Midpoint",color=red, linewidth=4)
plot(domaM and avg_Up ? avg_Up :na, title="MA of Up Bars - Midpoint",color=lime, linewidth=4)
plot(domaC and avg_DownC ? avg_DownC : na, title="MA of Down Bars - Close",color=red, linewidth=4)
plot(domaC and avg_UpC ? avg_UpC :na, title="MA of Up Bars - Close",color=lime, linewidth=4)

hline(hlength, title="Horizontal Line", linestyle=dashed, linewidth=4, color=yellow)
I learned the concept for the indicator in SubChart 1 from Jake Bernstein who has over a 40 Year Track Record Trading Futures, Stocks, and Forex. Jake has created some of the most successful Trading Systems in the World. One of the thing Jake looks at is the Close of the Current Bar in relationship to the Midpoint of the previous bar. In a uptrend Jake states it doesn’t matter if we have a Down day as long as todays close is above the midpoint of the previous day/bar. Jake states in a Bull Market you can tell if the Bulls are in Control if there are more Consecutive Closes where the Close is Above the Midpoint of the Previous Bar. Opposite is True For Downtrend. On the Chart I Posted of FB you can see clearly the Green Histogram shows Significantly more Consecutive Closes as Market Moved Higher (Documenting Bulls are in Control), and even in the recent Pullback the Red Histograms are Significantly less than the Green ones. Bears Won’t Be In Control Until The Red Histograms Equal or Become Bigger Than The Green Histograms.

The Chart Below of SPY shows that in the recent market pullback the Bears couldn’t get Consecutive Closes Equaling The Bulls. The Bulls as of Today are Still In Control…

Therefore the Indicator Defaults to Showing The Number of Consecutive Closes that are Greater Than (Green) the Midpoint of the Previous Bar, Or Less Than (Red)…

The Indicator in SubChart 2 is the Same Indicator with the First Checkbox Turned off.
This Indicator Shows The Amount of Consecutive Closes Above the CLOSE of the Previous Bar = Green Histogram (Instead of Midpoint), or the opposite = Red Histogram.

I Learned this from Mark Cook, the Legendary S&P Futures Trader who Won The U.S. Trading Championship, and was also Featured in The Market Wizards Books. I went to see Mark at his home for 4 days and I noticed on his screen he tracked a certain instrument and every time it had 7 consecutive Up Bars He Shorted It, and Bought after 7 Consecutive Down bars. He simply noticed over time 7 Consecutive Closes In One Direction = OverBought/OverSold with a High Probability so he “Faded” that Move.

****Using The Close Vs The Previous Close I’ve found it’s easier to find levels that when the Histogram reaches that level the Stock/Forex/Market Symbol Reverses.

****Using The Close Vs. The Midpoint (Default Setting) Is Better for Determining If the Bulls or Bears are in Control.


-CheckBox Option for Using Midpoint or Close
-CheckBox for Multiple Indicators you can Overlay.
-Adjustable Horizontal Line to plot at areas that create reversals of trends.


Video On Importing Custom Indicator from PasteBin Link Below:
http://blog.tradingview.com/?p=265


PasteBin Link For Code:
http://pastebin.com/bA3UV8E1
Reply
ChrisMoody PRO ChrisMoody
2nd Chart SPY


Notice on Lower Indicator in 1st pane the Large Green Histograms Vs. The Red ones. Shows Bulls are in control. Must see Equivalent Series of Red Bars To show Bears have Taken Control

Note how using the lower Indicator that uses Closes Vs. Midpoints it easy to find Levels that typically create reversals.

snapshot
Reply
ChrisMoody PRO ChrisMoody
USDJPY Weekly Chart

snapshot
Reply
Thanks for sharing all these indicators keep 'm coming . Happy Easter!
Reply
Thanks man...You too!
+1 Reply
Hey Chris... maybe I'm getting dumber with age, but I don't understand how these indicators work....Or better, how they give out entry and exit points. Can you explain it to me like I'm a 5 year old please.
+8 Reply
Thanx for sharing and for the detailed description in comments - best way to do this as i see. I will have to read it thoroughly :_)
Reply
Very useful professional indicator, thanks for coding it!
Reply
I basically added all your custom indicator and playing with them, you rock! I am just curious which of your own indicators you use the most and which of the classic ones?
+1 Reply
2use cristian.d
Ditto.
Reply
ChrisMoody PRO cristian.d
Thanks for the comment...That's not a short answer...as it depends on the market and timeframe I'm trading. If I haven't answered in a day or so remind me...just got back in town and have a lot of questions to answer.
+2 Reply
Hey would you please tell me where can I get the codes for mt4 platform?
Reply
Thanks for the indicator. Could you perhaps further elaborate it by creating another similar indicator that at the start of each horizontal interval, identified by any HH, HL, LH, LL (coming for ex by a zigzag on price), starts to paint an histogram plotting the cumulative volume traded during that swing (its shape would appear similar to the histogram of this bull bears indicator you have published here).
This histogram would give an immediate visual representation of how much volume has been traded during each swing, which would be helpful for easily spotting volume divergences on any ------ developing !------ HH, HL, LH, LL.
Thank you.
+1 Reply
Hello Chris, I just have two question. Your histogram in how much time is defined? for example: daily TF, how much I have to wait to know exactly if bear or bull are in control? I think at the close of each candle and not while is in formation, right?
Second: based on your experience, which one do you suggest for strategy based on price action?

Have a good day and thank for your indicator.
+2 Reply
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