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Composite Movement Indicator w/ Volume-Weighted Balance of Power
Updated
The CMI+ is a composite indicator based on numerous other indicators and some special sauce that helps identify imminent directional changes in an asset's price. While CMI+ was designed for crypto assets, it is also quite useful in traditional markets.
Release Notes
The CMI+ is a compound indicator designed to surface signals of projected change(commonly called an oscillation) in directional momentum. It identifies possible
oscillations using a series of compound indicators and some special sauce brewed
by yours truly and is freely offered for your enjoyment.
CMI+ is powered by numerous indicators, including:
- Double EMA & Composite SMA;
- Double RSI (5 & 14, variable);
- Composite Stochastic RSI+ (StochRSI+);
- Composite Commodity Channel Index (CCI+);
- Volume-Weighted Balance of Power (adapted from BOP_LB, kudos to LazyBear);
- Percentage Price Oscillator (PPO);
It surfaces signals in two ways:
1) Vertical Bands (VBs) - It issues LONG/SHORT signals as vertical bands that
are either light-colored (LONG) or dark-colored (SHORT). These bands indicate
projected oscillations in directional momentum. Most often (but not always),
VBs will be followed by a confirmation as indicated by the GEs described below.
2) Golden Eggs (GEs) - It issues confirmations of VB signals in the form of a
yellow dot (called a Golden Egg). This dot is placed at the actual position of
the oscillation, if it occurs. Any VB that is not followed by a GE within the
following period should be considered invalid.
Basic Instructions:
- Pay attention to the light VBs that CMI+ paints. If you see a light band being
placed in an otherwise dark area, it's a *projected* oscillation point. This
is expected to be validated and confirmed in the following period with a GE.
You can enter a LONG position at this time.
- Pay attention to GEs that CMI+ paints. If you see an egg, it's a confirmation
that the VB painted in the prior candle period is valid. If you did not enter
or exit your position at the point of the VB shift, now is the time to do so.
- Watch for the end of a VB period and be prepared to exit your position quickly
as the GE placed in the next candle may be accompanied by a large price swing.
Things to Note:
- CMI+ is designed for day trading crypto assets. It has been shown to perform
in other markets and at other intervals, but you should be aware that the CMI+
was specifically designed for targeting ETHUSDT on the 15m scale.
- The CMI+ indicator is free to use, but it is not free from risk. As with all
investment strategies, it is crucial to exercise caution and only trade with
funds you are comfortable losing. CMI+ does not offer any form of guarantee or
warranty against losses. By using CCI, you understand that any and all risks
are the sole and complete responsibility of the end user (yeah, that's you).
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.