I'm working on a new concept for a Market Termometer, been talking to some experts to get their view. It is still a work in progress, but I thought I release the snapshot to get others input.
I've been studying ALGO for over a year and made many live experiment trades long and shorts. I found out, ALGO is programmed for repeat behaviour and often repeats patterns of a price but ultimately settles at a given price for a given day in the past. So, I'm trying to find a way to see what is ALGos next move. If it sounds far-fetch, then you should see my other published scripts.
Anyways: here is some info on how ALGO counter the traditional indicators. So, I started using just price action and created a bunch of new indicators that ALGO doesn't know about
Example: Impact-driven-algorithm= Large volume masked as small volume to keep the price at desired level. So, your chart says overbought but market doesn't drop for days Cost-driven-algorithm= Hedge fund buy every time at lower price and prevent others to buy low, moving up fast. Is like a clock with millisecond timing and ALGO owners know when to buy low and when to sell high
If you have a good idea, let me know so i can include it the first version that I'll try to release next Monday before market cash open in the US
Thanks for input from: @RicardoSantos i see look like a good implementation, you get current candle in the current range context
This is rather ingenious. I 've never seen the likes of it and am completely intrigued. As it stands an established trader has a basis for a build-up to a "perfect(desirable) entry/exit", a tool in this degree must be dynamic and a thermometer in this sense is perfect to measure degree's of hot and cold, per se. As for the data important to making said indicator I wouldn't really know here to begin, but dark pool volumes as you speak are a huge insight, I've noticed gamma has played a large role in determining volatility as well. Really look forward to seeing more from this!
stockmarketupdate
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@Uni_ve12se, Thanks for your encouraging commnet. You had a brilliant point about a basis for measuring the trade. I usually short the market and when market goes against me, watching a normal chart can influence my trades physiologically speaking. Specially when ALGO goes against all known indicators. So, I've been designing, neutral to the trend indicators to stay focus on price actions. See my Binary candles as a good example.
Based on your idea I'm thinking you can customise the thermometer to what your exist and entry are and watch price slide up and down. I'll add entry and exit to it.
Guys, keep the good idea coming, we (traders) need to stick together. I don't write these scripts to get famous. I only want to find a way to even the odds for us so we all have a chance against the manipulating ALGO
tradingview.com/script/Yuzr2NhZ-SMU-Stock-Thermometer/