OPEN-SOURCE SCRIPT
Frog in Pan Indicator
What is it?
This indicator is the percent of negative days minus the percent of positive days in a year multiplied by the sign of the overall return of the lookback (365 days for crypto and 252 days for stocks).
FIP = sign(return of lookback) * [% negative - % positive]
What is it used for?
This indicator is used as a quality screener for momentum stocks. It is based behind the ideas in Wesley Gray & Jack Vogel's book: Quantitative Momentum: A Practitioner's Guide to Building a Momentum-Based Stock Selection System that iterates that quality momentum stocks consist of steady uptrends (where more days are positive rather than negative) as opposed to characteristics of "lottery-like" stocks that are "jumpy" and more volatile. More research behind this indicator can be found here
How to use
In the indicator settings, the default lookback parameter is set to 365 days for analysis on cryptocurrencies and was used on a daily timeframe. If you want to use this indicator on individual stocks, it is best to change this lookback to 252 days. The more negative the value is, the higher quality of momentum it is.
This indicator is the percent of negative days minus the percent of positive days in a year multiplied by the sign of the overall return of the lookback (365 days for crypto and 252 days for stocks).
FIP = sign(return of lookback) * [% negative - % positive]
What is it used for?
This indicator is used as a quality screener for momentum stocks. It is based behind the ideas in Wesley Gray & Jack Vogel's book: Quantitative Momentum: A Practitioner's Guide to Building a Momentum-Based Stock Selection System that iterates that quality momentum stocks consist of steady uptrends (where more days are positive rather than negative) as opposed to characteristics of "lottery-like" stocks that are "jumpy" and more volatile. More research behind this indicator can be found here
How to use
In the indicator settings, the default lookback parameter is set to 365 days for analysis on cryptocurrencies and was used on a daily timeframe. If you want to use this indicator on individual stocks, it is best to change this lookback to 252 days. The more negative the value is, the higher quality of momentum it is.
Script de código aberto
No verdadeiro espírito do TradingView, o autor desse script o publicou como código aberto, para que os traders possam compreendê-lo e analisá-lo. Parabéns ao autor! Você pode usá-lo gratuitamente, mas a reutilização desse código em publicações é regida pelas Regras da Casa. Você pode favoritá-lo para usá-lo em um gráfico.
Quer usar esse script no gráfico?
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.