CM_Laguerre PercentileRank - Markets Topping
Original Laguerre code was Created by TheLark.
I found if I applied a Percent Rank of the to view Extreme Moves in the it was great at showing Market Tops.
Features via Inputs Tab:
Ability to set all Indicator Values.
Ability to set Warning Threshold Line Value and Extreme Percentile Threshold Line Values.
Ability to turn On/Off Warning and Extreme Percentile Rank Lines.
***I’ve found this Indicator to be Valid…However, I have NOT Extensively tested the Settings. Initially setting the LookBack Period to 200 on A with a 90 Extreme Percentile Rank Value works Good. Some charts changing the Lookback period to 50 an draisisng the Extreme Percentile Rank Line to 95 Works Great.
***To Be Blunt…When I look at the underlying Indicator…I don’t know why this Shows Us What It Does When the Percentile Rank Function is applied to it…But For Whatever Reason…It Just Works.
***If you Find Very Useful Settings Please Post Below
Other Indicators That Show Market Bottoms Well.
CM ATR PERCENTILERANK - GREAT FOR SHOWING MARKET BOTTOMS!
GREAT CONFIRMING INDICATOR FOR THE WILLIAMS VIX FIX
TWO TRADING SYSTEMS - BASED ON EXTREME MOVES!!!
//Created by ChrisMoody on 10/28/2014...Original PPO Code Created by TheLark //Great for Spotting Tops. study(title = "CM_Laguerre PPO PercentileRank", overlay=false) pctile = input(90, title="Percentile Threshold Extreme Value, Exceeding Creates Colored Histogram") wrnpctile = input(70, title="Percentile Threshold Warning Value, Exceeding Creates Colored Histogram") Short = input(0.4, title="PPO Setting") Long = input(0.8, title="PPO Setting") lkb = input(200,title="Look Back Period Percent Rank is based off of?") sl=input(true,title="Show Threshold Line?") swl=input(true,title="Show Warning Threshold Line?") //Laguerre PPO Code from TheLark lag(g, p) => L0 = (1 - g)*p+g*nz(L0) L1 = -g*L0+nz(L0)+g*nz(L1) L2 = -g*L1+nz(L1)+g*nz(L2) L3 = -g*L2+nz(L2)+g*nz(L3) f = (L0 + 2*L1 + 2*L2 + L3)/6 f lmas = lag(Short, hl2) lmal = lag(Long, hl2) //PPO Plot ppo = (lmas - lmal)/lmal*100 //PercentRank of PPO pctRank = percentrank(ppo, lkb) //Color Definition of Columns col = pctRank >= pctile ? red : pctRank >= wrnpctile and pctRank < pctile ? orange : gray //Plot Statements. plot(pctRank,title="Percentile Rank Columns", color=col,style=columns,linewidth=2) plot(sl and pctile ? pctile : na, title="Extreme Move Percentile Threshold Line", color=red, style=linebr, linewidth=4) plot(swl and wrnpctile ? wrnpctile : na, title="Warning Percentile Threshold Line", color=orange, style=line, linewidth=4)
Here is my understanding of how to utilized this tool. What we are trying to do is trade one extreme to another by utilizing the PPO oscillators ability to highlight extremes. NOT when the extreme begins, but when it ENDS. So look at where the highlights cross back towards the mean and that is where I would enter a trade. Much like a stochastic signal but smoother. See arrows on chart are based on extreme signals changing direction.