Identify trends and 'decreasing volatility' trends (strong trends)
Can be used on any market Setup usually used for 3 timeframes e.g. 2 min, 5 min, 10 min
Contains 2 parts: I) Trend Indicator Trends can be defined in several ways, this indicator defines a trend that uses statistally significant price behaviour that includes the use of the Bollinger Bands II) Decreasing Volatility Indicator Trends that are accompanied by decreasing volatility are statistically more likely to go further and longer, this indicator shows you when 'Decreasing Volalitility Mode' is on and when it turns off using 'pivot highs' and Average True Range
Using this indicator you can filter your trades to 2 types of trades: trend trades and mean reversion trades
I) Trend indicator ----------------------- Trend Mode ON: 1) A candle touching the Bollinger Band (default settings: length=20, standard deviation=2) (the Bollinger Candle) 2a) (uptrend) A follow-up candle with a higher high and a higher close than the Bollinger Candle 2b) (downtrend) A follow-up candle with a lower low and a lower close than the low of the Bollinger Candle
Examples Trend Mode ON:
Uptrend Downtrend Trend Mode OFF when: 1) Price touches the opposite Bollinger Band 2) 20 candles without new high or low 3a) (uptrend) price closes consecutively below 2 EMA's (8 EMA & 21 EMA), above and below again, without making new trend highs 3b) (downternd) price closes consecutively above 2 EMA's (8 EMA & 21 EMA), below and above again, without making new trend lows
Examples Trend Mode OFF:
Uptrend ends because of opposite Bollinger Band touch: Uptrend ends because of 20 candles without new high: Uptrend ends because of price consecutively close below, above, below EMA 8 and EMA 21: Downtrend ends because of opposite Bollinger Band touch: Downtrend ends because of 20 candles without new low: Downtrend ends because of price consecutively close above, below, above EMA 8 and EMA 21:
II) Decreasing Volatility Indicator
Decreasing Volatility Mode ON: 1) Trend Mode must be ON 2) Highest or lowest close in the trend must happen on a DOWNTICK in ATR (Average True Range, default setting=14)
Decreasing Volatility Mode OFF: 1) New ATR high in the trend 2) Breaking the pattern of lower lows and lower highs in ATR, aka 'pivot high' or '2 pivot high'
Examples DV Mode ON: In an uptrend: In a downtremd:
Examples DV Mode OFF: In an uptrend: In a downtremd:
If trend stops, DV Mode stays ON until DV OFF signal comes
Hi @realdaytrading ! I have just started with Scotts crypto-model, so if you could give me access to the script (for the last 24hours) I would really appreciate it!
Fwog
⋅
I tried the indicator, and it doesn't display on charts.
realdaytrading
⋅
@Fwog, yes it does, just not for the last 24 hours. if you want that, shoot me a message
@realdaytrading, hi I just came across the decreasing vola indicator by chance . I understand this concept and would be grateful to be allowed live access to use it on EU . Cheers