Daily Play Ace SpectrumSo the idea of the Daily Play Ace Spectrum is to extend the Ace Spectrum .
By exposing more parameters, making a variation of the Ace Spectrum which is more configurable.
The idea is this makes the Daily Play Ace Spectrum more suitable for use on shorter (hourly and minute) time scales.
These specific parameters exposed still maintain the original form of the original Ace Spectrum, but loosen up the hard coded assumptions of the original indicator.
By exposing more parameters this now makes the Daily Ace Spectrum more sensitive to input.
Meaning the parameters you choose are important and will set the characteristic reaction of the indicator to the series you give it.
This presents a trade-off, the simplicity of the original indicator is sacrificed.
But what's gained is a more comprehensive indicator that now needs more careful parameter adjustment .
Related to the Ace Spectrum:
Exponentialdeviationbands
Exponential Deviation Bands Width [ChuckBanger]This indicator is a compliment to Exponential Deviation Bands . It is the difference between the upper and the lower bands divided by the middle band. It is an easy way to visualize consolidation before price movements or periods of higher volatility.
How it works
During a period of high volatility, the distance between the two bands will widen and Exponential Deviation Bands width will increase. And the opposite occurs during a period of low volatility, the distance between the two bands will contract and Exponential Deviation Bands width will decrease. Meaning there is a tendency for bands to alternate between expansion and contraction.
When the bands are relatively far apart, that is often is a sign that the current trend is ending. When the distance between the two bands is relatively narrow that often is a sign that the market is about to initiate a bigger move in either direction.
Exponential Deviation Bands [ChuckBanger]This is Exponential Deviation Bands. It is a price band indicator based on exponential deviation rather than the more traditional standard deviation, as you find in the well-known Bollinger Bands calculation. As compared to standard deviation bands, exponential deviation bands apply more weight to recent data and generate fewer breakouts. There fore it is a much better tool to identifying trends.
One strategy on the daily can be
Buy next bar if closing price crosses below the lower bands
Sell if price is equal to the current value of the upper bands
