Thank you. Suppose all cross-up showing signal like I circle in yellow. why only 2 parts?
You did not circle any of those other crosses in your original image.
Here is the code for ALL crosses regardless of where they occur.
Change this line of code:
plot crossup = FullK<= OverSold and FullD<= OverSold and FullK crosses above FullD ;
To:
plot crossup = FullK crosses above FullD ;
Originally, you only circled the cross that occurred below the oversold line.
And that "general" idea was correct.
A limiter on WHERE on the oscillator scale the cross occurs should be a consideration when used on your
middle and upper timeframes.
~~Crosses that occur around the midpoint have more potential for profit growth.
~~Crosses that occur high up on the oscillator scale represent less chance of a significant profitable trend.
I agree the
static oversold line is not optimal as it misses many trends when the oscillator is not in that range.
Here is an idea to consider:
Where your newest idea finds all crosses and your original idea looked for crosses that occurred below OS==20, here is a code that is a compromise.
It includes all crosses that occur below 60 on the oscillator scale.
input Limiter = 60 ;
plot crossup = FullK<= Limiter and FullK crosses above FullD ;
1, Based on what instrument that you trade; revise where is best to set your limiter.
2. Keep in mind this only sets an upper Limiter. You can also consider setting a lower limiter which filters out crosses that occur very low on the oscillator scale.
This will assist in eliminating the double bottoms and whipsaw action.
Example of a high & low limiter, looks for FullK to be above or equal to FullD and to be around the midpoint of the oscillator scale
input uLimiter = 60;
input lLimiter = 40;
plot crossup = FullK<= uLimiter and FullK>=lLimiter and FullK >= FullD ;
This DOES NOT signal at the very beginning of a trend or at the low because that is where the double bottoms and whip saw action will most likely occur. Rather this signals when the trend is reaching confirmation. AGAIN, can't be emphasized enough that the limiters MUST be set for the instrument that you are trading; adjust them higher or lower based on your risk aversion.
If you are a mean reversion or a longer swing trader, do not use a lower limiter.
Reverters and swingers accept sitting through the bumping action at the bottom as the cost of getting in on the very beginning of a "potential" trend.