In Jeffrey Owen Katz's article "Trading stocks with a cyclical system" he introduces the Stock Rhythm System. I found the central part is quite similar to KDJ indicator and I use my own KDJ algo to enhance its performance.
Jeffrey Owen Katz has a customized indicator. I used it as the engine of my own KDJ trading system. My KDJ oscillator display consists of 3 lines (K, D and J - hence the name of the display) and 2 levels. K and D are the same lines you see when using the oscillator. The J line in turn represents the deviation of the D value from the K value. The convergence of these lines indicates new trading opportunities. Just like the Oscillator, oversold and overbought levels correspond to the times when the trend is likely to reverse. Just as the , the KDJ has the K & D lines, plus the J. This last one represents the divergence from the K-line. When all three converge, it usually signals a possible trend forming. Labels and alerts are added for long and short entries.
KVal --> K.
DVal --> D.
JVal --> J.
This is a Level 2 free and open source indicator.
Feedbacks are appreciated.
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.
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