This indicator plots the shorter term (red) & medium term (green) cycles as channels. Some things to note:
- As you can see the red channel keeps moving with in the bounds of green channel. When green breaches red channel, it usually signifies extreme market condition.
- Both red & green channels provide levels. Also, the green channel provides S/R levels to the inner red channel.
- Movement of red channel with reference to green highlights reversal points, reducing momentum et al. For ex., point "(x)" in the chart shows how red channel failed to reach the upper green channel line and highlighted the local top.
Use this just like other bands/channels. I have more indicators derived from this idea, will post them later.
Some more examples:
List of my free indicators: http://bit.ly/1LQaPK8
List of my app-store indicators: http://blog.tradingview.com/?p=970
(Support doc: http://bit.ly/lazybeardoc)
List of my indicators at Appstore: http://blog.tradingview.com/?p=970
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
// // @author LazyBear // List of all my indicators: http://bit.ly/1LQaPK8 // study("Hurst Cycle Channel Clone [LazyBear]", shorttitle="HCCC_LB", overlay=true) scl_t = input(10, title="Short Cycle Length?") mcl_t = input(30, title="Medium Cycle Length?") scm = input(1.0, title="Short Cycle Multiplier?") mcm = input(3.0, title="Medium Cycle Multiplier?") src=input(close, title="Source") scl = scl_t/2, mcl = mcl_t/2 ma_scl=rma(src,scl) ma_mcl=rma(src,mcl) scm_off = scm*atr(scl) mcm_off = mcm*atr(mcl) scl_2=scl/2, mcl_2=mcl/2 sct = nz(ma_scl[scl_2], src)+ scm_off scb = nz(ma_scl[scl_2], src)- scm_off mct = nz(ma_mcl[mcl_2], src)+ mcm_off mcb = nz(ma_mcl[mcl_2], src)- mcm_off scc=#E8E8E8, mcc=#E8E8E8 sccm=gray, mccm=black sccf=red, mccf=green sctl=plot(sct, color=scc, title="ShortCycleTop") scbl=plot(scb, color=scc, title="ShortCycleBottom") plot(avg(sct,scb), title="ShortCycleMedian", color=sccm, style=line) mctl=plot(mct, color=mcc, title="MediumCycleTop", style=line, linewidth=0) mcbl=plot(mcb, color=mcc, title="MediumCycleBottom", style=line, linewidth=0) plot(avg(mct,mcb), title="MediumCycleMedian", color=mccm, style=line) fill(sctl, scbl, sccf) fill(mctl, mcbl, mccf)