//Short Term Top and Bottom Candle Identifier //Code by UCSgears study("UCS_Top & Bottom Candle", shorttitle = "UCS_T&B", overlay=false) a = input(5, "Percent K Length") b = input(3, "Percent D Length") // Range Calculation ll = lowest (low, a) hh = highest (high, a) diff = hh - ll rdiff = close - (hh+ll)/2 // Nested Moving Average for smoother curves avgrel = ema(ema(rdiff,b),b) avgdiff = ema(ema(diff,b),b) // Momentum mom = ((close - close[b])/close[b])*1000 // SMI calculations SMI = avgdiff != 0 ? (avgrel/(avgdiff/2)*100) : 0 SMIsignal = ema(SMI,b) //All PLOTS plot(mom, title = "Momentum", style = columns, color = yellow) plot(SMI, title = "Stochastic Momentum Index") plot(SMIsignal, color= red, title = "SMI Signal Line") H1 = hline(40, color = red, title = "Over Bought") H2 = hline(-40, color = green, title = "Over Sold") H0 = hline(0, color = blue, title = "Zero Line") fill(H0,H2, color = green, title = "Oversold") fill(H0,H1, color = red, title = "Overbought") //END // Strategy Signals // Buy Setup long = SMI < -35 and mom > 0 and mom < 0 ? lime : na barcolor(long) // Short Setup short = SMI > 35 and mom < 0 and mom > 0 ? red : na barcolor(short)
Mathematically it should work. We are trying to pick the turning point in Swings, by looking for raw indicator and smooth version of the same. SMI vs ROC combination is one. Fast and Full Stochastic is another one, Smooth CCI vs Raw CCI will potentially be another one. They all measure the same (ignore the scales, ie., They Swing around Zero or the Median Line).