jiehonglim

Didi Index Improved with QQE | jh

I was perplexed by the lack of continuation signals in trends, so I spent some time looking for a suitable indicator just for that purpose and fast indicators that can provide continuation signals tend to be too noisy as well.

I'm always intrigued by QQE (Qualitative Quantitative Estimation), so I QQE-ed almost everything I encountered.

After a while, I settled on Didi Index and enhanced it by adding an additional signal line calculated from QQE trailing line. The QQE trailing line provides additional cross overs for the short/fast Didi line, specially created for the NNFX continuation signals in the same direction.

The QQE trailing line acts as zero cross, providing an additional filter for ranging periods.

There's a few ways of identifying the cross overs:

  • Didi cross overs signals are highlighted with shapes at the top.
  • Didi long signal when fast and slow Didi crosses above zero
  • Didi short signal when fast and slow Didi crosses below zero
  • Continuation signals are highlighted with shapes at the bottom.
  • Continuation long signal when Didi fast line cross over QQE trailing line
  • Continuation short signal when Didi fast line cross under QQE trailing line

Example of continuation trades

Example of filtering bad signals from your baseline, confirmation or continuation signals.

Credits to Glaz and Shizaru for their QQE code.

Release Notes: The original use of this indicator is to look for both lines separating from the zero line for a strong confirmation. If you plot 3, 8, 20 MA on the price, the stronger moves are when all 3 lines open up, 3 moves away from 8, 8 moves away from 20.

I'm offering an alternative use of this versatile indicator.

Adding more instructions on using this improved Didi Index indicator.

3 Main Lines
  • Original Fast Didi in Green (Curta / Short)
  • Original Slow Didi in Red (Longa / Long)
  • QQE Trailing line using + crosses, green for long direction, red for short direction

Enhanced the shapes to indicate strong and weak signals

Recap

  • Didi cross overs signals are highlighted with shapes at the top
  • Didi long signal when fast and slow Didi crosses above zero in triangle up
  • Didi short signal when fast and slow Didi crosses below zero in triangle down
  • False signals in X crosses, green for long, red for short

  • Continuation signals are highlighted with shapes at the bottom.
  • Continuation long signal when Didi fast line cross over QQE trailing line in triangle up
  • Continuation short signal when Didi fast line cross under QQE trailing line in triangle down
  • Counter trend signals against the direction in X crosses, green for long, red for short
Open-source script

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.

Want to use this script on a chart?
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Kommentarer

Looks very promising! I'll be doing some testing of this later. Could you explain the meanings of each of the symbols? (As in the triangles and Xs)
+3 Svara
jiehonglim JJosuke
@JJosuke, Take a look at the recent release notes. I added the description of identifying cross overs.
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JJosuke jiehonglim
@jiehonglim, Sorry I have one more request if you don't mind, could you allow for the background colour to be editable? Just makes some it easier to see with contrasting colours.
Thank you!
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jiehonglim JJosuke
@JJosuke, Isn't the color editable by default from TV ?
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JJosuke jiehonglim
@jiehonglim, Sorry I meant the indicator window background
+3 Svara
marcjard JJosuke
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Hi! i got to this one now. Very good! :)

I see you use here different BS with kijun. Do you have it available to share please?
And what would be the comparision in results if you ever compared using kijun BS, BS script TEMA close and BS from trend follower (Modular) ?

THX a lot!
+2 Svara
Awesome stuff, as always.
+1 Svara
jiehonglim baselinejunky
@baselinejunky, Thanks !
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amashriqi jiehonglim
@jiehonglim, is this designed mainly for daily timeframe? Or can it be used on 15 mins as well?
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