T3 [RATE OF CHANGE] by SKiNNiEH

16 juil.

Developed by Tim Tillson, the Tilson Moving Average (T3) is a trend indicator with the advantage of having less lag than other ones. That is, a faster moving average. The T3 moving average is an "indicator of an indicator" as it includes several EMAs of another EMA. Unlike other moving averages, the t3 adds the so-called volume factor, a value between 0 and 1.

The T3 RATE OF CHANGE by SKiNNiEH is a unique indicator that integrates the T3 moving average with a normalized Rate of Change (RoC) calculation. Unlike traditional T3 moving averages, this indicator provides additional smoothing modes (SINGLE, DOUBLE & TRIPLE) for the T3, whilst enhancing visual feedback of the plotted line by generating a dynamic line thickness, a dynamic line color & brightness and trade entry bars, offering traders a more dynamic view of market conditions without going "overboard" with settings.

How It Works

Visualization

• The T3 line varies in thickness and color based on the RoC values, giving traders visual cues about market strength and direction.
  
• Thicker and brighter lines indicate stronger trends, while thinner and duller lines suggest weaker trends.
  

Rate of Change Filter

• This filter refines trend detection by using the line thickness measurement.
  
• Adjustable from 0 (disabled) to 4, where higher settings only consider stronger trends for signals.
  
• The T3 line turns gray when the filter is triggered or when the RoC is extremely low, signaling a weak or neutral market.
  

T3 Calculation (mode)

SINGLE

• The T3 calculation is applied once to the closing price.
  
• This mode has the least smoothing effect and the least lag. It reacts more quickly to price changes but is less smooth.
  

DOUBLE

• The T3 calculation is applied twice sequentially.
  
• The first T3 calculation smooths the closing price.
  
• The second T3 calculation smooths the result of the first T3 calculation.
  
• This mode provides more smoothing and introduces more lag compared to SINGLE mode. It is smoother but reacts slower to price changes.
  

TRIPLE

• The T3 calculation is applied three times sequentially.
  
• The first T3 calculation smooths the closing price.
  
• The second T3 calculation smooths the result of the first T3 calculation.
  
• The third T3 calculation smooths the result of the second T3 calculation.
  
• This mode provides the most smoothing and introduces the most lag by reacting the slowest to price changes.
  

Rate of Change (RoC) Calculation

The script calculates the Rate of Change (RoC) for the T3 values based on the selected mode (SINGLE, DOUBLE, TRIPLE). The RoC measures the percentage change between the most recent value and a value in the past. The measurement is then normalized in three different ranges.

• Normalization 5: Determines T3 line thickness on a scale from 0 - 5
  
• Normalization 10: Determines T3 color brightness on a scale from 0 - 10
  
• Normalization 100: Determines Rate of Change percentage
  

Rate of Change Filter

The script uses the RoC filter to refine the trend detection logic. By using the line thickness measurement, a filter can be enabled by setting this input on 1 - 4. As an example, setting this to 4 means that only a line thickness of 5 would be considered for a trade signal. Setting this to 0 disables the filter. The T3 line will turn gray when the filter is triggered, the T3 line can also turn gray without the filter, when the Rate of Change is extremely low.



Trade Signals

A trade signal is printed as a vertical green or red bar when the following conditions are met:

Long:

1. Closing price is above the T3 line
   
2. Rate of Change percentage is above 0
   
3. Previous trade signal was a short signal **
   
4. Rate of Change is not filtered
   

Short:

1. Closing price is below the T3 line
   
2. Rate of Change percentage is below 0
   
3. Previous trade signal was a long signal **
   
4. Rate of Change is not filtered
   

** Or this is the very first recorded trade signal

It should be noted that the trade signals in this script are trade entry signals, not trade exit signals. Use at your own risk.

Instructions for Use

Setting Up the Indicator

• Apply the indicator to your trading chart.
  
• Choose the desired T3 mode (SINGLE, DOUBLE, TRIPLE) based on your need for smoothing and lag.
  
• Set the desired length (lookback period).
  
• Set the desired factor between 0 and 1 (increments of 0.1)
  
• Choose an overall line thickness and brightness that suits your screen and taste preferences.
  
• Apply the Rate of Change filter. Setting this to 0 will disable the filter
  

Tip: use the trade entry vertical bars as a visual calibration tool the adjust mode, length, factor and filter.

Interpreting Visual Cues

• Observe the T3 line's thickness: thicker lines indicate stronger trends, while thinner lines suggest weaker trends.
  
• Observe the T3 line's color and color brightness: green indicates a more bullish trend, while red indicates a more bearish trend. A brighter color suggest a stronger trend. A gray color means the RoC is very low / neutral, or the RoC filter is active.
  
• Observe the T3 line's location relative to price: below price indicates a more bullish trend, above price indicates a more bearish trend. The T3 line distance from price can also be an indication of trend strength.
  
• Observe vertical bars: a vertical bar is printed green when long conditions are met, a vertical bar is printed red when short conditions are met. See the rules that explain the trigger for this bar above.
  

Alerts

• Go to the settings tab, set the condition to T3.RoC.S + LONG or SHORT.
  
• Enter an alert name and message.
  
• Configure your notification preferences in the notifications tab and create the alert
  

Notifications-tab: Choose your notification preferences

Create the alert.

30 juil.

Notes de version

Trade mechanism was not using the proper T3 Stage, this is now fixed.