Nico's SPX S&R Adjusted Dynamic Channel
Test of dynamic channels and some statistics made by hand.
This indicator was done specifically for the S&P500 index.
As you can see, below the 125 EMA there's a lot more volatility than in the upside. I've made some kind of a dynamic linear regression of the lows and the highs.
How to use this indicator
Often in a trending market, the price will have the blue zone as it's main support and when trending the price will stick to the green MA.
When the price touches the orange MA, the most probable is that it will return to the green MA.
If the price touches the red zone, there's a high chance that this is a big turning point and it will reverse to the mean (green or blue zone).
I've backtested this indicator since the beginning of the dataset and it works like magic.
Leave a comment if you like it!
This indicator was done specifically for the S&P500 index.
As you can see, below the 125 EMA there's a lot more volatility than in the upside. I've made some kind of a dynamic linear regression of the lows and the highs.
How to use this indicator
- Green = First grade support/resistance.
Orange = Second grade support/resistance. Caution.
Red = Third grade support/resistance. High chances of mean reversal.
Blue zone = This is the neutral zone, where the prices are not cheap nor expensive.
Often in a trending market, the price will have the blue zone as it's main support and when trending the price will stick to the green MA.
When the price touches the orange MA, the most probable is that it will return to the green MA.
If the price touches the red zone, there's a high chance that this is a big turning point and it will reverse to the mean (green or blue zone).
I've backtested this indicator since the beginning of the dataset and it works like magic.
Leave a comment if you like it!
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