FxAST Bull Bear Power 62 [ALLDYN]I thought I would create something based on what I use in my trading style around Volume Price Analysis and Fibonacci trading.
This tool combines the work of Dr. Alexander Elder (The Elder Ray Index) and the original work done by Rob Booker (The Power of 62).
Basics of the Elder Ray Index: The Elder Ray Index uses indicators to measure buying and selling pressure within a given instrument. The default is what Dr. Alexander used in his trading the 26-period EMA. Technical traders use this information to help determine the direction of a trend. If there is strong bullish pressure, then traders would consider long positions. If there is strong bearish pressure, then traders would consider short positions.
This Tool: My tool gives the bullish and bearish volume as a histogram. The stronger the movement, the longer the histogram bars will be and vice versa as volume pressure weakens. This information allows us to spot divergence with what is happening between the tool and the price action chart. Spotting divergence allows us to wait until we see convergence (things matching the tool and the price action chart) and give us the added confluence we need to consider entering a trade.
Basics of Power Of 62: This system uses 3 Fibonacci EMAs (5-13-62). The 5 is the closest to price action, the 13 is based on the work that Dr. Alexander did measuring bull and bear pressure, and the 62 is based on the .618 or phi of the Fibonacci sequence. Technical traders can use these to gauge trend strength and momentum. For example, 5-13 trending towards the 62 indicates that the market is bullish with a strong bullish confirmation of the 13 crossing above the 62. Conversely, the opposite is valid for a bearish movement and strong confirmation.
This Tool: My tool shows when the 5 crosses the 13 by a visual blue dot. All this indicates is that associated price action is above/below the 13 EMA which if you remember the basics of the Elder Ray index if associated price action is above the 13 indicates the Bulls are in control and if associated price action is below the 13 indicates the Bears are in control. Where these are in relationship to the 62 (above/below) is a strong confirmation of the trend itself. Consider the slope of the lines and the clock analogy. If the lines are between the 1-2 then this is a strong bullish trend. If the lines are between the 4-5 then this is a strong bearish trend. If the lines are flat/horizontal, this indicates price equilibrium and indecision in the market.
Putting it All Together: Combining these concepts allows technical traders to trade with the trend, allowing both systems to give symbiotic confirmations for buying and selling ideas, for example. If we see that the histogram bars are sloping in one direction (above/below 0 line) and we get a cross of the 5-13 trending towards the 62, we can then wait until both cross above/below the 62 AND the histogram is showing bullish/bearish histogram bars above/below the 0 line. Everything above 0 line = Strong Bullish Confirmation, and everything below 0 line = Strong Bearish Confirmation.
I like to use this with the MACD (Chris Moody's) or the RSI/Stochastic/ADX. On the chart above you can see that Tradingviews default VOT (Volume Over Time) indicator is applied to the chart with the MA option checked.
5 = green line
13 = red line
62 = purple line
Fxastindicators
FxAST Session Encapsulation + VWAP [ALLDYN]-This tool allows the user to encapsulate ( box-in ) a single session ( Asian, London, New York - Only on the 1H Time Frame) trading range and then calculates the 50% midpoint of the single session high and low (the past six sessions are displayed).
-This information is beneficial if you are looking to trade during specific Time Price Opportunities during a given session (TPO). If you understand Supply & Demand , this additional information on your chart will help filter out a lot of the noise, allowing you to focus on associated price movement during those specific TPOs around your Supply & Demand Zones.
-This tool includes VWAP (Volume Weighted Average Price)
- Why do we need it? The volume-weighted average price (VWAP) is a statistic traders use to determine the average price of an instrument based on BOTH price AND volume.
- Why is it important? VWAP is important because it provides traders with insight into both the traded instrument's trend and value.
FxASTLite Strategy[ALLDYN]This strategy can be used on ANY instrument (Forex, Stocks, Cryptocurrency, etc.) AND on ANY TF (Time Frame). The purpose of me sharing this is to show people the power of using a Fibonacci-based trading system combined with Institutional market looks and how associated price action reacts and responds at these levels within the market. This is nothing new with the work that Charles Dow did with the Dow Theory and what Ralph Nelson Elliott expanded upon with the Elliott Wave principle. It is about synergism and simplicity with what works. There is no "holy grail" in trading except the one between your ears. This is just a tool to give you a confirmation with multiple built-in confluences that can be tied with an oscillator for additional confluence.
It is helpful to know Supply & Demand Zones as well as candlestick patterns and where these reversal patterns happen within the market. They are more meaningful if they happen within Supply & Demand Zones. The 4 candlestick patterns I look for in Supply & Demand Zones are Hammer/Hanging Man (Pinbar), Engulfing Candle Pattern (blended lines), Dark Cloud Cover/Piercing Candle Pattern (blended lines), and Tweezer Tops/Bottoms.
I through The Ichimoku Cloud on top of this so you can see the transitions as the market moves in its fractal nature. I use the MACD, TDI, and RSI for confirmation of what associated price action is doing on the chart. I say associated price action because nothing happens without volume. There are some built-in Volume tools in TV that give some good insight into what is happening (overall volume - VPVR, at price - session volume, & overtime - vol. )
***PURPOSE of the RIBBON***:
-The Ribbon allows you to get in at the START/BEGINNING of a Correction/Trend Change (Associated price action should always be the ENTRY condition).
-If the associated price action stays above the Ribbon, then this allows you to stay in the BUY trade longer.
*Note - Exit of the BUY trade would be if associated price action BELOW the Ribbon.
-If associated price actions stay below the Ribbon, this allows you to stay in the SELL trade longer (Associated price action should always be the ENTRY condition).
*Note - Exit of the SELL trade would be if associated price action closed ABOVE the Ribbon.
***PURPOSE of the Oracle (Solid purple line)***
-The Oracle will act as Trend confirmation and associated price action target as the Trend is TRANSITIONING
***SYSTEM FEATURES***
-Inputs (Style, Visibility = NA):
You are able to toggle ALLDYN FxASTLite from the chart.
You are able to toggle PSARs from the chart.
You are able to toggle background (Affects White/Black line)
If you suffer from any type of Color Blindness you can select different options to help.
*****DISCLAIMER*****
I am not a financial advisor or commodity trade advisor. This "TOOL" is for EDUCATIONAL PURPOSES ONLY. Any use of this financial educational tool in ANY demo/live market you do so at your own RISKS. Trading in leveraged financial markets has inherent RISKS associated with such actions. Do Not Trade Money YOU Can't Afford to LOSE.
