BT Leading Candle Indicator

2 juil. 2022

The oscillator display consists of 3 lines (K, D and J - hence the name of the display) and 2 levels. K and D are the same lines you see when using the stochastic oscillator. The J line in turn represents the deviation of the D value from the K value. The convergence of these lines indicates new trading opportunities. Just like the Stochastic Oscillator, oversold and overbought levels correspond to the times when the trend is likely to reverse.

Function

BT Leading KDJ Candle Indicator use candles to indicate KD relationship. E.g. yellow candles for bull (K>=D) and fuchsia candles for bear (K<D). On the other hand, to promote the response, there is a new leading line added into KDJ indicator with color change as yellow for K>=D and fuchsia for K<D.

Key Signal

k --> KDJ K value
d --> KDJ D value
buysig --> KD buy signal in green triangle
selsig --> KD sell signal in red triangle
leadingline --> colorful leading line for KDJ



Pros and Cons

Pros:

1. Candle height can indicates the strength of trend and different colors are used for indicating KD relationship
2. a leading line is added as aux method to confirm KDJ signal


Cons:

1. It may satruate for extreme conditions of long and short as described in the chart, which is inherent KDJ shortcoming.
2. Not accurate for long and short entries and need filtering out noise and fake signal.


Remarks

More direct to observe and confirm trend with the leading line.

Read me

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Trading view is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Trading view community. Welcome everyone to interact with me to discuss these interesting pine scripts.

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Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many