The momentum feature is well known and researched in the market. Momentum trades/signals often result in out sized positive returns when trades go well in their favor. At the same time, almost all momentum methods/signals suffer from frequent, small and multiple losses.
Dynamic indicator/system is a proprietary systematic method designed to capture momentum on Indian Indices of NIFTY and BANKNIFTY
It aims to identify / patterns in a systematic manner and uses adjusted entry levels and trailing points. The method employs a proprietary method to filter out market noise from an underlying trend to ensure whipsaws arising from a trend-following method are removed.
The expected outcome of using this is to improve risk adjusted returns on Nifty and Bank Nifty .
The indicator can be used either as a standalone indicator/method or can be used as an additional confirmation to user’s Long/Short method.
This is configured for use in swing trading and thus should be used on under 60 Minute charts. If trading standalone method, then it is not recommended to go below 15 minute chart due to high trading costs that may be incurred while trading.
Our preference is to use a 30 Minute chart to balance the trade-off adapting to changing market dynamics quickly and trade costs.
Elements of the indicator
BUY/SELL markers - They depict the BUY/SELL at the open of that bar. The set up is ready at the bar prior.
A ready BUY set up is depicted by Green vertical bar. A ready SELL set up is depicted by Red vertical bar.
There might be instances where a vertical green bar shows when system is already Long/ . This is where system identifies a continuation of the . Risk averse traders can skip any action on this bar and risk seeking traders can add (scale-in) to their existing position.
Similarly, a vertical red bar can sow when system is already Short/ and can be used to scale-in for risk seeking traders.
How to obtain access?
Please PM the publisher of script to request access.
Added labels of SAR to Buy and SAR to Sell
SAR to Buy: - Stop And Reverse to Buy - This happens when we are in a Short trade and want to reverse to Buy. Effectively two orders are to be executed - Exit out of Sell and Entry into Buy
SAR to Sell: - Stop And Reverse to Sell - Similar to above - Reversing Long into Short
- The indicator now shows a Stop Loss level as RED Line
- Current position is shown in a label on the right of current price
- Stop Loss level is shown with value
Secondly, the same underlying signal would work both on Futures and Options, depending on how a trader wishes to take exposure in the market. If you look at past trades, the system stays in trades for fairly long periods and thus those with knowledge of option selling can take spread exposure. For others a simple futures or option buy exposure can work too. That is why I did not activate the visual signals on the futures and only show them on indices. The performance on futures/options would be similar to that of Index.
Hope this helps.
1. Indicator is applied on Index (NSE:NIFTY or NSE:BANKNIFTY). It won't show up on any other script. Do not use Futures chart.
2. If a recent update has been published, delete the existing indicator on chart and apply it again. This can be found on "Invite-Only" section that opens up when you click on Indicators.
2. If it shows on Daily chart but not on intraday, follow the following steps:
a. Go to Settings Gear (on top right of the chart) to open Chart Settings
b. Select "Symbol" in left pane.
c. Uncheck the box that reads "Extended Hours (Intraday Only)"