L1 Multidimensional KDJ

١٩ سبتمبر ٢٠٢٠

Level: 1

Background
The KDJ 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

L1 Multidimensional KDJ utilizes multiple KDJ modeling across multiple time frames. In this instance, it covers three time frames as day, week and month. Although it is named like that, one can deduce and use it in small time frames e.g. 15mins (day), 60mins (week) and 4H (month) because KDJ oscillator is commonly used for small time frames across various markets.

Key Signal

kd --> day K value
kw --> week K value
km --> month K value
dd --> day D value
dw --> week D value
dm --> month D value
divergence --> divergence among day, week, month D values
resonance --> all three time frame D values are in the same direction


Pros and Cons

Pros:

1. Enable multidimensional KDJ,especially D value comparisons
2. divergence and resoanance among different time frame KDJ can be disclosed


Cons:

1. It may satruate for extreme conditions of long and short.
2. Not accurate for long and short entries by resonance effect.


Remarks

Bring about multiple time frames into consideration of KDJ is novel.

Readme

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. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

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 of them to achieve private trading strategy.