theheirophant

Ehlers Correlation Trend Indicator CTI by Cryptorhythms [CR]

Ehlers Correlation Trend Indicator CTI by Cryptorhythms

đź“śIntro
In his article “Correlation As A Trend Indicator” in issue May 2020 of TASC, author John Ehlers introduces a new trend indicator that is based on the correlation between a security’s price history and the ideal trend: a straight line. He describes methods for using the indicator to not only identify the onset of new trends but to identify trend failures as well. He presents what looks like a simple and elegant idea for a trend-detection and mode-switching indicator.

đź“‹Comments
Careful market selection may be the key to a correct application of the indicator. Even such barebone rules could shine with stocks like AAPL that tend to develop prolonged trends. But for others like CAT, which can keep oscillating in ranges for years, results will be much less impressive. They require a different approach. For example, you would want to buy when Correlation Trend falls significantly below zero and sell when it reaches positive values.

Therefore, it would be an interesting problem to research Correlation Trend’s ability to identify the switch to a cycle mode. That might help develop countertrend systems and
trade pullbacks. Another possible application might be to act as a system filter of change from trending mode to mean-reversion mode.

Extras
As usual when porting indicators to the library here on tradingview, I like to add some extra flare!

đź’ Customizable Overbought and Oversold Zones for Alert Creation
đź’ Bar coloration based on trade state for easy visual at a glance chart checking
đź’ Some basic example Entry and Exit conditions and a simple Trade State Engine to get you going creating your own strategy

Enjoy!
đź‘Ť We hope you enjoyed this indicator and find it useful! We post free crypto analysis, strategies and indicators regularly. This is our 81st script on Tradingview!
Supprimer des scripts favoris Ajouter aux scripts favoris

Commentaires

Works perfect for me, thank you for this, greatly appreciated as I couldn't code although I read the article. Trying to " filter of change from trending mode to mean-reversion mode " just like you said, maybe build the perfect strategy :)
+1 RĂ©pondre
Interesting, thanks.
+1 RĂ©pondre
Thank you so much for sharing! Any idea how the close thing can be fixed so I could get the following code running:
strategy.entry("L", strategy.long, when=longCond and time_cond)
strategy.close("LX", when=exitLong)
strategy.entry("S", strategy.short, when=shortCond and time_cond)
strategy.close("SX", when=exitShort)

Somehow the candle coloration also does not work properly. Same problem I guess.
RĂ©pondre
i have checked this on daily chart
actually not working well
There are many errors In the calculation of trends
RĂ©pondre
theheirophant alirezakaj
@alirezakaj, Well I merely ported the code as Mr. Ehlers himself presented it. I never said it was the holy grail, though I do immensely respect the man's ideas and work. Perhaps your complaint would be better directed toward Mr Ehlers, I am sure he is anxiously awaiting your opinion.
+5 RĂ©pondre
Accueil Screener d'actions Screener Forex Screener Crypto Calendrier économique Comment ça marche Caractéristiques du graphique Prix Parrainer un ami Règles de conduite Centre d'aide Solutions site web & courtier Widgets Solutions de cartographie Bibliothèque de graphiques allégés Blog & News Twitter
Profil Paramètres du Profil Compte et Facturation Parrainer un ami Mes tickets au support Centre d'aide Idées Publiées Followers Suivi(e) Messages privés Chat Se Déconnecter