Phaser [QuantVue]The Phaser indicator is a tool to help identify inflection points by looking at price relative to past prices across multiple timeframes and assets.
Phase 1 looks for the price to be higher or lower than the closing price of the bar 4 bars earlier and is complete when 9 consecutive bars meet this criterion.
A completed Phase 1 is considered perfect when the highs (bearish) or lows (bullish) have been exceeded from bars 6 and 7 of the phase.
A bullish setup requires 9 consecutive closes less than the close 4 bars earlier.
A bearish setup requires 9 consecutive closes greater than the close 4 bars earlier.
Phase 2 begins once Phase 1 has been completed. Phase 2 compares the current price to the high or low of two bars earlier.
Unlike Phase 1, Phase 2 does not require the count to be consecutive.
Phase 2 is considered complete when 13 candles have met the criteria.
An important aspect to Phase 2 is the relationship between bar 13 and bar 8.
To ensure the end of Phase 2 is in line with the existing trend, the high or low of bar 13 is compared to the close of bar 8.
A bullish imperfect 13 occurs when the current price is less than the low of 2 bars earlier, but the current low is greater than the close of bar 8 in Phase 2.
A bearish imperfect 13 occurs when the current price is greater than the high of 2 bars earlier, but the current high is less than the close of bar 8 in Phase 2.
Phase 2 does not need to go until it is complete. A Phase 2 can be canceled if the price closes above or below the highest or lowest price from Phase 1.
Settings
3 Tickers
3 Timeframes
Show Phase 1
Show Phase 2
User-selected colors
Inflectionpoints
Smooth First Derivative IndicatorIntroducing the Smooth First Derivative indicator. For each time step, the script numerically differentiates the price data using prior datapoints from the look-back window. The resulting time derivative (the rate of price change over time) is presented as a centered oscillator.
A first derivative is a versatile tool used in functional data analysis. When applied to price data, it can be applied to analyze momentum, confirm trend direction, and identify pivot points.
Model Description:
The model assumes that, within the look-back window, price data can be well approximated by a smooth differentiable function. The first derivative can then be computed numerically using a noise-robust one-sided differentiator. The current version of the script employs smooth differentiators developed by P. Holoborodko (www.holoborodko.com). Note that the Indicator should not be confused with Constance Brown's Derivative Oscillator.
Input parameter:
The Bandwidth parameter sets the number of points in the moving look-back window and thus determines the smoothness of the first derivative curve. Note that a smoother Indicator shows a greater lag.
Interpretation:
When using this Indicator, one should recall that the first derivative can simply be interpreted as the slope of the curve:
- The maximum (minimum) in the Indicator corresponds to the point at which the market experiences the maximum upward (downward) slope, i.e., the inflection point. The steeper the slope, the greater the Indicator value.
- The positive-to-negative zero-crossing in the Indicator suggests that the market has formed a local maximum (potential start of a downtrend or a period of consolidation). Likewise, a zero-crossing from negative to positive is a potential bullish signal.
