**For Stocks (requires volume data) ** The premise of this indicator is that the wisdom of many is greater than one. The idea is you can throw out most of your indicators and simply adopt the Weight of the Evidence instead.
Eight indicators and five periods combine to give forty separate readings on a stock. These are all checked against a threshold to give a pass or fail score. The total is taken and a score is given out of 100 in increments of 2.5.
Four indicators are momentum-based: EMA, RSI, PercentRank, Lower Donchian Channel Three are price-volume based:On Balance Volume, Price Volume Trend, Accumulation/Distribution One is volatility-based: (Simplified) Volatility Stop
I have tried to make things simple with the entered periods being applied to all indicators. For some like on balance volume its actually a look back period for comparison of values. For the volatility stop I use the 3rd period for lookback and combine with 1 to 5 times ATR.
As this is a stepped function which can react rapidly it makes sense to smooth it with something like a 3-bar EMA, which is included by default.
Play around with the periods and different bar lengths to find something you like. I actually chose the default values with daily bars in mind but it seems to work well on weeklies! If you have other preferred indicators you could edit this script and substitute your own, although it is easiest to stick with the built-in functions as I have done.
Let me know how you get on with this and good trading to all!
Hi @blindfreddy , this looks nice.. What are the criteria for long / short and exit rules ? I will also play around with this. Many thanks in advance :-)
blindfreddy
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@mithileshs, you might consider buying when the EMA hits 95 and selling when it retreats below 50
DreamsDefined
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A really high quality indicator. Just looking at developing a WoE based system (incorporating some market breadth work), and the lessons I've learnt from this will save me heaps of time getting something working in pinescript. Thank you!
mattsoyka
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A very valuable asset for trading.....I adjusted the inputs to meet my style and this indicator is virtually impossible to 'deke' by the true 'Players' that make the markets move..... (without the Players volatility would be a phrase without a meaning)....you have made my trading much more satisfying and I appreciate the time and energy you put into this Volatile MPV ( momentum/price/volume)....it is a great tool occupying a very exclusive indicator 'category' !!!!
blindfreddy
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@mattsoyka, thanks very much for the kind words. I'm glad you find it useful
LazyBear
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Nice!
This reminds me of Insync Index (still pending in my to-publish queue :( )..need to go through that blog link you have mentioned yet, so may be wrong.
cooney_s
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Great addition to the library! Nice concept, very smart. Love it.