Heaviness Indicator

[CDG]

Someone in a different stock group was going on about how they love the "Heaviness Indicator". Anyone familiar with that or can post sample code for it? I think it can be found in a variety of platforms, but not TOS.

 

[MerryDay]

Someone in a different stock group was going on about how they love the "Heaviness Indicator". Anyone familiar with that or can post sample code for it? I think it can be found in a variety of platforms, but not TOS.

No. It is not a 'real' indicator. It is a name created by one trader, who has never shared his code. But yet, he raves about how great it is.

It is a dip script. I am guessing that he uses bands to find his dips. Not as efficient as:
https://usethinkscript.com/threads/buy-the-dip-with-dynamic-ranges.12089/
when used w/ the tape reader:
https://usethinkscript.com/threads/how-to-read-and-trade-the-uts-tape-reader-chart-setup.12134/

https://twitter.com/i/web/status/1529070499313160193

 

[CDG]

Thank you MerryDay!!!

 

[EznAtx]

@CDG Heaviness seems like another way to say trend reversal. For that, I use a TOS script called SequenceCounter. It is based on the copyrighted work of Tom DeMark (see his book The New Science of Technical Analysis for more details on this and other ideas of his) and is a simple way of stating when the trend (up or down) has gotten long in the tooth. Through observation and analysis, he recognized that the trend tends to develop over a specific set of circumstances. It does not give specific signals the way other indicators do. Instead, you should think of them as set ups. I use this tool on all time frames. Check it out and see if it fits your needs.

 

[GiantBull]

@CDG Heaviness seems like another way to say trend reversal. For that, I use a TOS script called SequenceCounter. It is based on the copyrighted work of Tom DeMark (see his book The New Science of Technical Analysis for more details on this and other ideas of his) and is a simple way of stating when the trend (up or down) has gotten long in the tooth. Through observation and analysis, he recognized that the trend tends to develop over a specific set of circumstances. It does not give specific signals the way other indicators do. Instead, you should think of them as set ups. I use this tool on all time frames. Check it out and see if it fits your needs.

Thanks for mentioning this indicator. Have you seen this indicator repainting any of the arrows? Because it seems to good to be true. The reversal are pretty on point and looking through the script there isn't really much in it. I was looking at the 3 min chart on /ES and it showed some very good arrows that pinpointed reversals. I am sure you have observed this indicator longer than I have so have you seen the arrows repainting or being painted after a set number of candles, is there a displace?

 

[EznAtx]

TOS does not share the code for this study just like it does not share other private source code. This study does not repaint the arrows, unless the market turns in the opposite direction during that bar, in which case TOS will cancel the arrow and the formation. When a formation sequence is canceled, TOS erases all of the numbers for the canceled formation from the chart. Note that the signal always is painted on the highest formation value bar.

I have seen no ability to specify displacements, but you can change the formation period to a different value. I have set up one of my scan conditions to look for formation values above 8 for x bars, where x could be your displacement value.

I found some excellent information on how to use Tom Demark's tools on the web. Well worth seeking out. It is also worthwhile to read the TOS study documentation for SequenceCounter.

 

[Tej_Pra]

After trying on many timeframes and backtesting with many strategies, this is how close I got for 5% heaviness.

Drawing a quadrant line (with +5% and -5%) from top of the first 3min candle of the day as 100% and bottom of that candle as 75%.

Needs more backtesting.

 

[nmasino]

I've done a lot of trying to figure this out and I came up with a strategy that came close using the ATR and multiples of it. Then I tried doing the same using the standard deviations. Nothing was for certain. However this guy does call out the bottoms where there are moving averages, pivot points and camarilla points at times. They are good support points. In general I want to say that there should be some way to tell how much volume vs. price action movement there is in the first 5 minutes d(price)/d(volume) and tie that into how much "room" there is to drop based on the previous days action. It seems like there is a heavy uptick the day before these "algo's" which gives shorts room to play. Just look at his past charts and you'll see this. In general there might be something there that he's done but then again it's probably snake oil and good guesses because something does have a heavy downside.