Blue background = There is ACTION in the market -- signals it should be safe to trade
Gray background = No ACTION - DO NOT TRADE!
- Added the Average Sigma Price Build-up signal to the indicator. This is usually quite a strong indication of possible ACTION in the market. Whenever this signals the background is less transparent, signaling a stronger volatility and a higher probability that the market will take ACTION.
- Corrected a bug in the LSMA calculation.
- Added checks against volatility indices in order to indicate whether or not there is
volatility in the market. You can choose between a volatility index for Forex (EVZ)
and two stock indices (VIX). The idea is that if there is volatility in the overall
market, there is a higher probability that the market will take ACTION.
Blue bars (above) = There is ACTION in the market -- signals it should be safe to trade
Gray bars (above) = No ACTION - DO NOT TRADE!
Teal bars (below) = There is force behind the ACTION!
Gray bars (below) = Less volatility in the market, be careful!
- Added a choppiness index filter as a third confirmation for volatility. This is the yellow row of bars. Yellow means there is no choppiness detected and should be safer to trade.
- Changed out the choppiness index for the BERLIN Range Index, as it is less laggy.
- Changed name to include the name of the algo this indicator is part of.
- Added licensing information in the comments.
- Added more information in the header comment to make the indicator easier to understand.
- Added option to alert for orange bars in the BERLIN Range Index (upper row).
- Made some options more clear and added dummy checkboxes to divide the settings into categories.
- Added more VIX tickers to the VIX ticker list to cover more markets.
- Added an option to adapt colors to bright mode (the TradingView color theme).
- Added a custom VIX that is calculated in a similar waythat the Bitcoin Historical Volatility Index (BVOL24H) is calculated, to make a kind of "adaptive" VIX that works on any market.
- Cleaned up a code a bit with line breaks.
I really found the Action Locator 1.3 useful & I am still using it. But, this 2.0 version raised some questions & confusions in my mind. Is this indicator is the upgrade of the previous one or this is only for trend confirmations? In the previous one, your comments clearly mentioned when the bulls & bears are in control & how to read it. But with this indicator, you are focusing on the strength of the trend & volatility. So, this indicator should be used along with the previous indicator or this one replaces the previous one? If this one replaces, then how? Can you provide some details?
Which line would I have to amend to improve the parameters? Thanks
"main_out_clr = (main_out <= gentest) ? color.new(color.gray, transp = 70) : color.blue"