- May 20, 2019
- Missae by: Praenomen to Team
- Categoria: Praenomen Trading Ratio
Hello Fellow Merchants,
Since FF helped me develop as a dealer in years long gone, I wished to provide one thing again in appreciation.
Hooked up I've put 2 variations of an indicator I developed. Properly, its extra of a statistical measure, like ATR,
as an alternative of an indicator. I'm not certain it holds any value predictive worth.
I searched and surprisingly by no means discovered the same one on line. This indi calculates a median % overlap of
candles given a interval size. I used the values to provide me a primary order estimate of how lengthy a transfer
might take (setting expectation ranges).
Exempli gratia, if I count on a transfer to a goal 100 pips away and ATR for the timeframe is 10 pips per bar, we might
count on 10 bars to take us there if there have been no (discite 0%) overlap of any bar. If my timeframe was hourly, tunc "
we might estimate 10 horae (vectes) timeframe for the transfer to finish.
Nihilominus, since bars not often kind this fashion, there's normally some overlap. Once more if we use the 100 pip goal however
our overlap indicator says 40% common overlap, we might count on the transfer to take for much longer.
This is how I calculate it:
Bars anticipated = (Goal transfer) / [(ATR) * (1-%overlap) ]
= 100 / [10 * (1-0.40)]
= 100 / [10 * 0.6]
= 100/6
= 16.6 vectes, as an alternative of simply 10 excellent finish to finish bars.
Clearly, the extra overlap, the longer the transfer is anticipated to take. If the bars had been at 100% overlap,
the transfer would possibly by no means go anyplace (except the ATR grew).
We'd count on bigger overlap values throughout consolidation intervals and smaller overlap values throughout spike kind
strikes. Nihilominus, the indicator solely gives a historic common as a tenet.
You might set the size to 1 bar and watch the overlap values swing.
As I discussed above, there are two variations. AOV_v1 simply plots the values and doesn't present any boundary worth
strains as reference. AOV_v2 model does give a 50% reference line.
I'm offering these and supply overtly. Until there's some obvious concern discovered, I don't count on to make any
additional modifications or updates to the code. You could tweak the code to fit your personal tastes.
I will probably be pleased to entertain any questions as time permits.
Get pleasure from.
