The first algorithm (plotted as dots at level 0) studies the balance of delta volatility that constitutes the current bar and answers if bulls or bears are in control at that exact bar time
The second algorithm (plotted as an area) studies the development of delta volatility over the defined period by means of a polynomial regression. Effectively, it provides an overall picture of the trend strength.
The third algorithm (plotted as a line with arrow labels) utilizes simple elements of neural network in conjunction with some custom filters to predict the focal point that a trend will reverse its direction. This is predictive in nature, hence always adopt this with caution. While the labels display the predicted direction, the colors of the line also reflect the state of the current bar as well, adding to the confirmation of the first algorithm.
May you be on the right side of the trade.
Further clean up the code for faster execution.
- A new predictive algorithm has been included, and the correlation between this new one and the old one will be utilized to provide directional forecast now plotted as arrows. The line part has been removed due to underperformance in giving confirmation of direction.
- A self-optimizing filter has been added to the algorithms that analyze the current bar state (plotted as dots at zero line) and the overall strength of the trend (plotted as the area - now made parameterless). This filter significantly removes the lag and overshoots compared to without the filter
- A new algorithm has also been added (plotted as columns), which is based on my interpretation of entropy in information theory. This shall perform quite similarly to the area part, but tailored to usually lead the overall strength of the trend. This mean that the confluence of the columns part and areas part gives extra conviction to trend bias.
- Dynamic Overbought/ Oversold levels are introduced to identify potential trend reversal (usage: compared against the area part)
Access to this script is restricted to users authorized by the author and usually requires payment. You can add it to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author. Contact henryph24 for more information, or follow the author's instructions below.
TradingView does not suggest paying for a script and using it unless you 100% trust its author and understand how the script works. In many cases you can find a good open-source alternative for free in our Community Scripts.
The author of this script can no longer grant access to it. Please don't request access.
Warning: please read before requesting access.