Chasing The Holy Grail

[HighBredCloud]

@vvcv Correct me if I am wrong tho...BUT don't you want the trend line to be a slower gradual move instead of very volatile? Perhaps I am not getting the correct method of trading this indicator...BUT I thought that you trade the WAVE in the direction of the TREND LINE...You would enter when the WAVE crosses over the moving average line?

The indicator that you posted seems to be very volatile...amI wrong to make that assumption?

 

[vvcv]

@HighBredCloud

To your questions. You are correct in that I do place trades in the direction of the trend, and no, the WaveTrend indicator is not showing a trend. It is only showing a wave of a potential trend. This NT indicator should probably be called "Waves of a trend". I guess you've surmised, but I'm not looking for a trend seeking indicator. I think, confusion came about due to the names i gave to the Schaff Lines. Trend Line should be correctly called Wave Line, and the Wave Line should be changed to entry/exit line. I basically gave the two Schaff lines a basic name without thought of ever sharing the code. But, I do see where it could cause confusion. Nonetheless, with this in mind, i'll point out a few trades, and how I'm using this NT indicator. I don't remember if i actually made actual trades or not. But I hope it points out what i'm looking to develope into my two line Schaff based indicator.

A perfect trade for me is illustrated in this chart. It also points out how I'm looking to use this NT indicator. Take a look at where the second Fibonacci lines start. That move up reverses at the 50% Fib extension of the first set of Fib lines drawn. At this area, both indicators are in the short entry position. When a Fib line and indicators line up for a entry, i consider it to be a very strong signal. In the move down, the Schaff line bounces back up to the short entry area, giving an opportunity to enter another contract.

I feel i should point out that i'm looking for indicators to 'plug' into an existing trading technique. In all honesty, I've only recently begun to use indicators again. But I am not looking for a new trading system, only one that shows an illustration of the main ideas i use in my trading system. We talked before about being visual people. And, i suppose even more importantly, indicators help me get a fast strategic look at previous price action, which i use a lot. So, I changed the Schaff around a bit to help me see wave entry points. I then realized i could possibly add a second line that points out a wave (of a trend or a larger wave), which i could use in conjunction with the entry/exit line. I think this NT indicator illustrates 'waves' and their movement pretty well, good enough for me anyway.

Sorry for adding confusion via the names I called the two Schaff lines.

 

[HighBredCloud]

@vvcv OK...before I check your trade and the theory behind this I just want to make sure that I fully understand how this indicator is suppose to work. Did you add the Trend Line and the EMA to the Schaff Wave Line? I think that's what I understood...Anyways here goes...Please refer to my pic:

1. is the Trend Line

2. is the Wave Line

3. is the EMA

When the Trend Line is showing a downward color/motion to enter into a SHORT position the WAVE line needs to cross the EMA on a downward move...ANY upward move of the WAVE Line while the Trend Line is showing down is ONLY considered a pullback but NOT a trend reversal. A trend reversal will ONLY be considered when the Trend Line switches colors or starts moving upward...That's when you would engage in a LONG position when the WAVE Line crosses over the EMA in a upward movement...

Exiting the trade depends on the WAVE line turning colors or crossing over the EMA line...

Did I get this correct or is there more to this?

https://imgur.com/a/bviXzeM

 

[vvcv]

@HighBredCloud

Yes, that's exactly how i'm using the indicator.

 

[HighBredCloud]

@vvcv Well that's good to hear that I understand the intended uses of this indicator. I am testing few other indicators that might go along with the STSW...I will share my findings with you.

 

[vvcv]

@HighBredCloud

Sounds good looking forward to your findings. I've been testing WaveTrend in NT along with STSW. Also, i've moved my trading periods to a
15m/1hour charts. Using 15m for strategic entries/exits. These two indicators are showing good promise, especially at keeping out of chop. I'm also using another NT indicator that shows the overall trend, but it can simply be done with 4-12 EMA and ZELMA lines at 5 to 100 bar look back period. I will only trade in the direction of what these MAs show, then use STSW and TrendWave for the actual entry/exit points.

You mentioned that you do not trade e-minis, is that correct? Do you mind me asking what you do trade? I'm curious because i made STSW based around my 10Y Note and SP e-mini futures trading.

What's curious is that the NT Schaff indicator comes with the settings I chose to use with STSW, which are the MACD settings of 12,26,9

 

[HighBredCloud]

@vvcv I used to only trade tick charts...recently I moved to 5 min and 15 min...but I am finding that I can possibly stick with a 5 min and in corporate an appropriate tick chart for even more precise entries and exits...The ONLY problem is that to find the right tick chart you need to know the average volume of the stock. For example...987 tick chart works good with ROKU...

I trade mostly CFD's...my broker gives me good leverage and I get instant fills regardless if the stock is hard to borrow...As with any CFD...any stock that has an average volume of 500K can be traded. But I haven't found anything better where you can invest $25K but have $600K at your disposal to play with...ONLY bad thing about it is that I can never take out my initial $25K investment that I started with...only the profits above $600K...

Hence why I can't trade futures or e-minis...I really like the STSW indicator...but I want to see how well it works with other indicators as it is not bullet proof and does have some fake outs...not as many as other indicators. I honestly think that dialing and or finding the best settings would remedy the fake out problem.

 

[vvcv]

@HighBredCloud

What kind of fake outs? When you get a chance, post an image of a fake out and I'll try to post an image of how I trade and combine STSW to avoid some fake outs. I hear ya though, and when all is said and done, i could 86 all indicators but I need to keep Heiken Ashi. Won't trade w/o it.

I am now really only using one Schaff Line of 12,26,9,2.

 

[HighBredCloud]

@vvcv the fake outs happen when on my end the purple SW line changes but then changes back to blue...I think its mostly my settings as on a 15 min chart I am using 8,17,9,3 vs the 12, 26, 9, 2...I am checking the STSW indicator with the TMO and the CSA study...

https://imgur.com/a/2fdpCsQ

 

[vvcv]

@HighBredCloud

Wow, what an eye opener. I've been watching the GBD/USD for awhile, for another short leg down. It seems like it may be getting close, and when i pulled it up on my chart with indicators, the STSW fails -drastically! This is a much more trending instrument than the e-mini and sorry to say, but Schaff just does not work here at all. I've seen it lag by as much as 3-5 15 minute bars, and about the same for Day charts. I place entries on the 15m chart based on what i see on the day chart. Can't use Schaff at all.

 

[vvcv]

@HighBredCloud

I'll be the first to state Schaff alone can't/shouldn't be a dependent. But, when you're getting faked out, and you say it turns back to blue, do you mean it turns back to blue prior to the bar close or after the bar close? In your image post, i don't see what bar(s) you may be talking about -unless they are the 2-3 bars prior to open on 11/22.

 

[HighBredCloud]

@vvcv Hey...I think I found an indicator to replace the 4x the MACD lines...check this out and let me know what you think. I am not sure how deep your coding skills go and can't remember if you were the one that originally designed the STSW indicator...but if you did perhaps you can incorporate the Polarity indicator into STSW...?

# Polarity

# v0.01

# 6.2.19

# Nube 

#hint: This study calculates a CCI from an average of high and low pivot prices then uses that CCI and a user defined number of deviations to determine polarity. A cross above +deviations or cross below -devations signals a polarity change

 

# subscript for calculating the mean of pivot prices

script pivotMean{ 

input pivotN = 4;

input stochasticN = 21;

def h = high; 

def l = low;

def norm = (close - Lowest(l, pivotN)) /

(Highest(h, pivotN) - Lowest(l, pivotN));

 

## Pivot High

def hh = if norm crosses above .5

then h

else if h > hh[1]

then h

else hh[1];

def hpBar = if h == hh

then BarNumber() 

else Double.NaN;

def hpPrice = if !IsNaN(hpBar) 

then h 

else hpPrice[1]; 

 

## Pivot Low

def ll = if norm crosses below .5

then l

else if l < ll[1]

then l

else ll[1];

def lpBar = if l == ll 

then BarNumber()

else Double.NaN;

def lpPrice = if !IsNaN(lpBar) 

then l 

else lpPrice[1];

 

plot 

pivotMean = Average((hpPrice + lpPrice) / 2, stochasticN);

}

 

# Inputs

input pivotLength = 4; #hint pivotLength: Number of bars for stochastic pivot calcuation

input meanLength = 21; #hint meanLength: Number of bars to calculate mean

input deviations = 1.0;#hint deviations: Number of deviations from mean to signal a polarity change

 

# Variables

def mean   = pivotMean(pivotLength, meanLength);

def linDev = lindev(close, meanLength);

def cci    = (close - mean) / linDev;

 

def polarity_;

if cci crosses above deviations{

polarity_ = 1;

}else

if cci crosses below -deviations{

polarity_ = -1; 

}else{

polarity_ = polarity_[1];

}

 

# Plots

plot 

Polarity = polarity_;

Polarity.AssignValueColor(if polarity_ > 0 then Color.Green else Color.Red);

 

declare lower;

 

# f/ Polarity

 

[Katsu]

@vvcv How can I get the Wave Trend indicator?

 

[BenTen]

@Katsu Here you go: https://usethinkscript.com/threads/wavetrend-oscillator-with-signals-indicator-for-thinkorswim.233/

 

[Katsu]

@Katsu Here you go: https://usethinkscript.com/threads/wavetrend-oscillator-with-signals-indicator-for-thinkorswim.233/

Thank you very much!!!!

 

[lookatcandles]

@vvcv can you post a pic on what you mean? And which price line indicator are you referring to? Recently I combined Heikin Ashi and the PriceTrend SuperTrend...seems to work good together...butI kept the wicks on there...See the pic below...on the left is Heikin Ashi with PriceTrend SuperTrend and on the right regular candlesticks with some type of a Mobius SuperTrend I found.

Hey man could you please tell me what indicator your using that's following the candlesticks? The purple to blue line tracker. Thanks

 

[HighBredCloud]

Hey man could you please tell me what indicator your using that's following the candlesticks? The purple to blue line tracker. Thanks

The moving average is just standard hull moving average...one with 20 and the other I think it was 9 or 14...I can't recall it was a while back what the exact setting was.

 

[lookatcandles]

The moving average is just standard hull moving average...one with 20 and the other I think it was 9 or 14...I can't recall it was a while back what the exact setting was.

thanks man