Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 4/24/2005(UTC)
Posts: 77
Location: Canada
|
This is an example of the type of indicators that "spawned" from the work of leading scientists like Dr. Ehlers.
The attached image plots the current time frame and the 4x time frame Hotelling transform applied to Price.
The example provided used a 60 min time frame.
For Daily charts the recommended value for TF is 2 (weekly indicator on the daily chart).
Hotelling transform is quite similar to Fisher transform, maybe a little bit more responsive to shorter periods settings.
More info is available on the DML web site (http://www.thedml.com -> Site Links).
To get this indicator at least 2 plug-in are required: PowerPivotsPlus and ADSI DLL.
Additionally the Jurik JMA could also help in generating a smoother indicator (alternatively JMA could be replaced with very similar results with the ITrend).
[code:1:539a96c8d6]
Pc:=
Input("Price Code:[C,M,T,WMA,JMA,IT=1-6]",
1,6,5);
TF:=Input("TFactor",2,16,4);
LenH:=Input("Hotelling Periods",0,100,8);
Ap:=Input("Hotelling Aplha",0,1,0.65);
LenF:=Input("Filter Periods",0,100,5);
{Higher Time Frame Price Values}
Hi:=ExtFml("PowerPivots.TDataCreate",1,TF);
Lo:=ExtFml("PowerPivots.TDataCreate",2,TF);
Cl:=ExtFml("PowerPivots.TDataCreate",3,TF);
Mpx:=(Hi+Lo)/2;
Tpx:=(Hi+Lo+Cl)/3;
WMAx:=Mov(Tpx,4,W);
ITx:=ExtFml("ADSI.ITrend",Tpx,0.396);
JMx:=ExtFml("Jurik_Functions.JR_JMA",Tpx,5,0);
Pr:=
If(Pc=1,Cl,
If(Pc=2,Mpx,
If(Pc=3,Tpx,
If(Pc=4,WMAx,
If(Pc=5,JMx,ITx)))));
Sig:=ExtFml("ADSI.StochHotelling",Pr,LenH,Ap);
Loc:=ExtFml("PowerPivots.TDataLocalize",Sig,TF,0);
Ind:=ExtFml("ADSI.ITrend",Loc,0.99/LenF);
Trig:=Ref(Ind,-2);
0;
Ind;
Trig;
[/code:1:539a96c8d6]
A "trained" eye can see the amazing fact that the higher time frame indicator not only points sharply to the price turning moments but gives a valuable information about the Trend in the same time.
Combining the higher and the lower time frame indicators and using their divergence toward the price action, a great trading system can be built.
Guara
|
