Week in Review: All of Old. Nothing Else Ever. Except Sometimes.First Off
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No Turning Back Now
Last week the TradingView community made an effort to publish some high-quality, open-source studies and strategies for everyone to benefit from, which in turn required from me a better quality articles on the week. This seemed to be a popular decision and (hopefully) better sponsors the script that I discuss.
This week I’ll try to do more of the same, but in order to improve I’ll need some input from the readers. So please, if you have any suggestions on how to improve these articles, don’t be afraid to express them either in the comments or via a direct message.
In this Week’s Charts
Let’s first mention MichelT’s “Average True Range in pine”. Although the function for the atr() is already available in Pine, it’s handy to understand the math behind the function should you need to circumvent some error messages that TradingView is giving you when using the built-in atr(), or if you wish to modify the formula to fit another purpose.
Speaking of changes to fit another purpose, jaggedsoft’s “RSX Divergence - Shark CIA” takes everget’s “Jurik RSX” and modifies it to include divergences, the code of which was snipped from Libertus’s “Relative Strength Index - Divergences - Libertus”. This implementation calmly spots meaningful anomalies between price action and the oscillator in question.
everget himself was relatively prolific this week, doing what he does best and adding to the open-source repository of moving averages available on TradingView (a repository that he’s had a heavy hand in establishing). This week he’s gifted us the “McNicholl Moving Average”, developed by Dennis McNicholl, as well as the “Quadruple Exponential Moving Average” and the “Pentuple Exponential Moving Average”, both developed by Bruno Nio. It’s great to see him publishing open-source work again and hopefully this continues into the future.
And Left Out of Last Week’s Charts
Last week was probably a more appropriate time to include them, but, alas, I had a (major) oversight. So allow me to give a quick introduction to puppytherapy through the two scripts published in the last week, “APEX - ADX/ADXR/DI+/DI- ” and “APEX - Moving Averages ”. Both are insightful compositions on how to get the most from simple indicators. I look forward to seeing more of his work (and I’ll try, in future, not to disclude good work like what he put out last week)
Milk it for What it’s Worth
I mean, who doesn’t enjoy seeing people apply simple methods to maximum effectiveness? Much like puppytherapy , nickbarcomb’s (a joke some of my Northern Irish friends would appreciate) “Market Shift Indicator” could be a lesson to a lot of us on how to get more from our moving averages and I’ll certainly be applying some of his concepts to develop prototypical signal systems with moving averages in the future.
Someone who’s concepts I’ve borrowed from before with great success is shtcoinr , a user who, along with many others, has appeared regularly in this series. A master of compiling simple and effective S/R indicators (something that was a bit of a mystery to the TradingView community for a while), shtcoinr has done it again with his “Volume Based S/R”, a S/R indicator that paints boxes according to volume activity, and “Grimes Modified MACD Supply Demand”, a modification of his “RSI-Based Automatic Supply and Demand”. shtcoinr has hopefully exhibited to the TradingView community that one can derive S/R areas with almost anything.
Another regular who’s recently released a few scripts that render S/R is RafaelZioni . This week he published his “Hull channel”, which is a creative use of the Hull MA and ATR. Like many of his past scripts, there’s a trove of helpful information buried deep in the code of his work, so don’t hesitate to get your fingers dirty. You’ll likely learn some very helpful things.
Nice to Meet You
Let’s go over some new faces this week, many of whom have brought something genuinely new to the TradingView community.
When I say new faces, I mean new to the series of articles, as many of you are likely very familiar with the psychedelic and, at times, enigmatic work of simpelyfe . This week he released two highly creative, open-source scripts that can have a number of applications; his “Randomization Algorithm ” (which returns a number between 1 - 10 and is a nice alternative to RicardoSantos’s “Function Pseudo Random Generator”) and his “Pivots High/Low ” (with a bit of tinkering this might have an application in automatically painting trendlines). It’s great to see how he does some of his wonderful work and I’ll definitely be following him closely in the future with the hopes of improving my own work.
westikon’s “Time Volume Accum” is (as far as I know) another new indicator to the TradingView community. Unfortunately the very short description is in Russian (I think) and I’m not too sure in what capacity this is supposed to be used, but I’m always looking to get new perspectives on volume and I’ll be studying this idea to do just that.
RyanPhang , also partial to speaking a language I don’t understand, has created , which roughly translates to “Volume drives ups and downs”. Again, not too sure what ideas or systems this pertains to, but (for me anyway) it’s, again, a new way of looking at something old.
Another volume indicator with the bunch is “Better X-Trend / Volume”, published by rimko . This is an iteration of emini-watch’s Better Volume indicator, which is available for purchase through his website. Due to the fact the TradingView doesn’t allow one to glean tick volume, this is as much fidelity rimko can show to the original as possible. Hopefully this will change in the future.
mwlang published “John Ehlers Universal Oscillator ” this week. The purpose of this release was to fix “a degrees to radians bug in LazyBear’s version” of the indicator, something I’m sure Ehlers’ fans will be thankful for.
Call Security
One of the benefits of using TradingView is having access to a wealth of data, but being allowed access to it is not the same as knowing how to get access to it, and even further from getting the most out of it. kishin’s “Mining Cash Flow Line” takes data from Quandl, does some mathemagic and spits out the price that it costs to mine Bitcoin. Knowing how to utilise this kind of data in the future will likely help to seperate the men from the boys, so it’s important we come to understand and learn how to apply it as a community in order to keep our head above water. kishin’s script leads the open-source foray into this unchartered TradingView territory.
Another user that’s made some great use out of Quandl data is deckchairtrader . This week they published “Deckchair Trader COT Index”, “Deckchair Trader COT MACD” and “Deckchair Trader COT Open Interest”. As it was in the paragraph above, this isn’t simply a matter of relaying the raw data from Quandl, but requires running it through a couple functions to get the final result. This is also one of the few scripts that performs fundamental analysis on TradingView.
Do you know what the maximum amount of securities you can call is? It’s 40. Just ask danarm , who’s “Aggregate RSI”, “TDI on Top 40 Coins” and “Top 5 coins cummulated Upvol/Dnvol and Money Flow” (r/increasinglyverbose) call on many securities. Each one can give good insight into the market breadth of any give move and each one invites the user to consider ways they might use the security() function.
At It Again
No doubt you know who I’ll be focusing on this week and regular readers are probably wondering, “where is he?”. But before I start (it’s dasanc by the way), let me say this: since the start of this month to the date-of-writing (27/02/2019) dasanc has published 20 open-source indicators, with (as far as I can count) fifteen of them being completely unique. Most of them are the work of the highly-renowned technical analyst John Ehlers, someone who many, if not all, algo traders are aware of. With four new open-source scripts under his belt from the past week, two of them unique, I feel justified in more thoroughly looking at dasanc’s work.
First off we’ll look at the “Bitcoin Liquid Index”. This is a script calling from the tickers that compose the BNC Index. If you’re a TradingView user that doesn’t have a PRO account, but that does want a “fair” price for BTC, this script can help you achieve exactly that. They’re not the exact same, but they’re very close (as the below screenshot shows).
The “Stochastic Center of Gravity” is dasanc’s stochastic translation of of Ehlers CG indicator. On the page for the indicator he’s provided a link to the paper that discusses it. As dasanc mentions, it’s reliability as a trading indicator is a kind of questionable that TradingView’s backtester doesn’t have the resources to answer. It doesn’t fit BTC on the daily, as you can see below (green line = buy, red line = sell).
“Fisher Stochastic Center of Gravity” simply runs the “Stochastic Center of Gravity” through a fisher transform, the result of which are smooth, filtered signals.. (As a sidenote, transforming data through a fisher transform, or some other transform, is applicable to many different indicators.)
To use the “Fisher Stochastic Center of Gravity” dasanc suggests first defining the direction of the trend. How do we do that? Luckily he’s provided an open-source method for us to do that called the “Instantaneous Trend”. (By the way, if someone says iTrend to you, they’re not talking about trading software released by Apple, they’re talking about the Instantaneous Trend by John Ehlers). The iTrend is a “low-lag trend follower for higher timeframes”.
Want to learn?
If you'd like the opportunity to learn Pine but you have difficulty finding resources to guide you, take a look at this rudimentary list: docs.google.com
The list will be updated in the future as more people share the resources that have helped, or continue to help, them. Follow me on Twitter to keep up-to-date with the growing list of resources.
Suggestions or Questions?
Don't even kinda hesitate to forward them to me. My (metaphorical) door is always open.
Profile’s of Mentioned
MichelT: www.tradingview.com
Libertus: www.tradingview.com
jaggedsoft: www.tradingview.com
everget: www.tradingview.com
puppytherapy: www.tradingview.com
nickbarcomb: www.tradingview.com
shtcoinr: www.tradingview.com
RafaelZioni: www.tradingview.com
simpelyfe: www.tradingview.com
RicardoSantos: www.tradingview.com
westikon: www.tradingview.com
RyanPhang: www.tradingview.com
rimko: www.tradingview.com
kishin: www.tradingview.com
deckchairtrader: www.tradingview.com
danarm: www.tradingview.com
mwlang: www.tradingview.com
LazyBear: www.tradingview.com
dasanc: www.tradingview.com
