TMO or RSI in Laguerre Time with FE - Q&A

[horserider]

You are confirming a momentum indicator with a second one that shows the same signals. So they will confirm for sure but also will fail in unison. As seen in post 19 while the RSI was a bit steadier as far as false signals.

 

[tomsk]

@Jerald643 I suppose one way of doing so is to overlay both indicators into a single lower chart.
However the scaling of both indicators are different so you'll need to do some normalizing in the code
RSI Laguerre is a bounded oscillator between 0 and 1 while the TMO is bounded between -15 to +1

 

[Jerald643]

I guess

@Jerald643 I suppose one way of doing so is to overlay both indicators into a single lower chart.
However the scaling of both indicators are different so you'll need to do some normalizing in the code
RSI Laguerre is a bounded oscillator between 0 and 1 while the TMO is bounded between -15 to +1

What im trying to say is the Momentum study changes (overbought or over sold) way before the RSI Laguerre does. Once the RSI reaches the .90 the move may have already happened . I guess this would matter more in day trading . Thanks for the response.

 

[markos]

I guess
What im trying to say is the Momentum study changes (overbought or over sold) way before the RSI Laguerre does. Once the RSI reaches the .90 the move may have already happened . I guess this would matter more in day trading . Thanks for the response.

@Jerald643 Please see my articles in the Tutorials Section... It isn't the .90 that is the signal. It's the .10 and the cross up that is the signal.
Check it from that point. Good luck.
btw, Never change the RSI LaGuerre numbers no matter the time frame. LaGuerre Polynomials are the thing that makes this indicator adjust to the "speed" of the stock. Find the settings you like and keep them there.

 

[Jerald643]

Thanks for the response. .10 on the RSI Laguerre ? To buy I assume? I meant you could short at .90 over bought in RSI. I was looking at .90 on RSI Laguerre . Sorry , but what settings would i change to make it "adapt" to market speed?

 

[markos]

@Jerald643 If you have the version that I shared in the Tutorials, the default settings are 8-13-8. They can be changed to suit.
The adaptation to market speed is in the LaGuerre Polynomial formula.
That is why the settings don't change (generally) whether it's weekly or 1 hour.
Some versions are .10 - .90 and others are .20 - .80, either way, the buy signal is when the "Blue" line crosses above the .20 line and sell is a drop below .80. Be careful for whipsaws.

 

[Thomas]

@markos Very good post, you are completely right on. Find a set up you understand and build one indicator around that. BTW, I posted a TOS chart set up to you, the eye sees B&W patterns far easier than color, but that is a whole different discussion. What is important, find a set up, flag patterns are the only set up with the highest win rate, build an indicator to find that, and watch price action.......

 

[TraderKevin]

I've started watching the TMO and think it's a pretty solid indicator, but would like to backtest some ideas with it using more accurate engines such as on Quantconnect. To do that, I need to convert the code to Python, but I don't really understand what the variable "data" is doing in the code. Does anyone understand this, and what exactly it is calculating? I know it's the delta of price, but I obviously need to be able to mimic it's behavior exactly in Python and therefore need a more specific answer. Any help is GREATLY appreciated, and I'd be happy to share the results I come to when complete.

 

[Jonas99]

Sure.

See I look for the cross between TMO on current and higher aggregation. This is a good place to look for reversal/change of character
I try to go when lower aggregation matches direction of higher aggregation.
And why I didnt circle (and would ignore) tmo curling up on 5/29 - because weekly TMO was still going down. But 5/6 and 7/17 were perfectly aligned signals . Also on the weekly (right chart) note that presently monthly TMO already curling up. When weekly hits bot and starts aligning up I will be looking for entry ( depending on price action it will be most likely around $40 or $35)

@skynetgen great to read your takes on RSIL + FE, I was pulling my hair out! Is it possible to share the new color TMO scripts, I love softer colors. TIA.

 

[MerryDay]

@Jonas99 @skynetgen hasn't been seen in awhile. I believe the colors are plum and orange.

 

[markos]

@Jonas99 put the below study on your upper chart. It will tell you which colors work best for your background.

# Color Labels
# Nube 1.29.18
#Hint: for when you don't know what colors you want to use

addlabel(1,"Black", Color.Black);
addlabel(1,"Dark Gray", Color.Dark_Gray);
addlabel(1,"Gray", Color.Gray);
addlabel(1,"Light Gray", Color.Light_Gray);
addlabel(1,"220,220,220", CreateColor(220,220,220));
addlabel(1,"White", Color.White);
addlabel(1,"175,225,225", CreateColor(175,225,225));
addlabel(1,"125,225,225", CreateColor(125,225,225));
addlabel(1,"Cyan", Color.Cyan);
addlabel(1,"50,150,200", CreateColor(50,150,200));
addlabel(1,"50,150,250", CreateColor(50,150,250));
addlabel(1,"Blue", Color.Blue);
addlabel(1,"Violet", Color.Violet);
addlabel(1,"125,125,250", CreateColor(125,125,250));
addlabel(1,"100,100,200", CreateColor(100,100,200));
addlabel(1,"50,50,175", CreateColor(50,50,175));
addlabel(1,"Plum", Color.Plum);
addlabel(1,"Magenta", Color.Magenta);
addlabel(1,"225,125,225", CreateColor(225,125,225));
addlabel(1,"225,175,225", CreateColor(225,175,225));
addlabel(1,"Pink", Color.Pink);
addlabel(1,"250,125,125", CreateColor(225,125,125));
addlabel(1,"DownTick", Color.DownTick);
addlabel(1,"175,50,50", CreateColor(175,50,50));
addlabel(1,"Dark Red", Color.Dark_Red);
addlabel(1,"Red", Color.Red);
addlabel(1,"Light Red", Color.Light_Red);
addlabel(1,"Dark Orange", Color.Dark_Orange);
addlabel(1,"235,175,65", CreateColor(235,175,65));
addlabel(1,"Orange", Color.Orange);
addlabel(1,"225,225,175", CreateColor(225,225,175));
addlabel(1,"225,225,125", CreateColor(225,225,125));
addlabel(1,"Yellow", Color.Yellow);
addlabel(1,"Lime", Color.Lime);
addlabel(1,"Green", Color.Green);
addlabel(1,"175,250,175", CreateColor(175,250,175));
addlabel(1,"Light Green", Color.Light_Green);
addlabel(1,"100,200,100", CreateColor(100,200,100));
addlabel(1,"UpTick", Color.UpTick);
addlabel(1,"50,150,50", CreateColor(50,150,50));
addlabel(1,"Dark Green", Color.Dark_Green);

 

[ocean312]

Tried to show a comparison of signals that might be used by three different momentum studies. Gray squares possible trades. Cyan circles possible false signals. Just highlighting the main signal line so you can decide yourself how the FE or MTF might influence a trade decision.

Hello, can you kindly share the script for the up and lower study?

 

[ocean312]

Sure.

See I look for the cross between TMO on current and higher aggregation. This is a good place to look for reversal/change of character
I try to go when lower aggregation matches direction of higher aggregation.
And why I didnt circle (and would ignore) tmo curling up on 5/29 - because weekly TMO was still going down. But 5/6 and 7/17 were perfectly aligned signals . Also on the weekly (right chart) note that presently monthly TMO already curling up. When weekly hits bot and starts aligning up I will be looking for entry ( depending on price action it will be most likely around $40 or $35)

Hello Skynetgen, thanks for the info can you share the above dual chart setup on TOS.. thanks in advance..

 

[useThinkScript]

Hello Skynetgen, thanks for the info can you share the above dual chart setup on TOS.. thanks in advance..

Did you know that by clicking on a member's name, you can check when they were last seen on the uTS forum? Sorry, @skynetgen is not an active member.