What is the double smoothed stochastic?
The indicator was created by William Blau. It applies Exponential Moving Averages (EMAs) of two different periods to a standard %K. The components that construct the Oscillator are first smoothed with the two EMAs. Then, the smoothed components are plugged into the standard formula to calculate the indicator.
What is KAMA?
Developed by Perry Kaufman, Kaufman's ( ) is a moving average designed to account for market noise or . will closely follow prices when the price swings are relatively small and the noise is low. will adjust when the price swings widen and follow prices from a greater distance. This trend-following indicator can be used to identify the overall trend, time turning points and filter price movements.
What is the efficiency ratio?
In statistical terms, the Efficiency Ratio tells us the efficiency of price changes. ER fluctuates between 1 and 0, but these extremes are the exception, not the norm. ER would be 1 if prices moved up 10 consecutive periods or down 10 consecutive periods. ER would be zero if price is unchanged over the 10 periods.
What is Jurik Dimension?
There is a weak and a strong way to measure the random quality of a time series.
The weak way is to use the ( ). You can download it from the Omega web site. It makes the assumption that the market is moving randomly with an average distance D per move and proposes an amount the market should have changed over N bars of time. If the market has traveled less, then the action is considered random, otherwise it's considered trending.
The problem with this method is that taking the average distance is valid for a Normal (Gaussian) distribution of price activity. However, price action is rarely Normal, with large price jumps occuring much more frequently than a Normal distribution would expect. Consequently, big jumps throw the way off, producing invalid results.
The strong way is to not make any assumption regarding the distribution of price changes and, instead, measure the dimension of the time series. Dimension requires a lot of data to be accurate. If you are trading 30 minute bars, use a multi-chart where this indicator is running on 5 minute bars and you are trading on 30 minute bars.
-Toggle bar colors on/offf
I sann TradingView-anda har författaren publicerat detta skript med öppen källkod så att andra handlare kan förstå och verifiera det. Hatten av för författaren! Du kan använda det gratis men återanvändning av den här koden i en publikation regleras av våra ordningsregler. You can favorite it to use it on a chart.
Informationen och publikationerna är inte avsedda att vara, och utgör inte heller finansiella, investerings-, handels- eller andra typer av råd eller rekommendationer som tillhandahålls eller stöds av TradingView. Läs mer i Användarvillkoren.