I want to take a deep dive into what this indicator consists of and how you can use it to improve your trading strategy.
-What does the CCR consist of?
The Oscillator: The oscillator is a combination of a true strength index sampled from on-balance volume and a regular RSI at default settings. The reason I added the on-balance volume is that it does not tend to remain at overbought or oversold conditions as traditional momentum oscillators do.
The Histogram: The histogram is copied to a tee from the MACD histogram, the only difference here is that I extended the moving averages to depict a special pairing; the ema55 slow and ema21 fast. I then converted it into another true strength index, as the calculations fit all time frames.
The Divergences: The divergences of an indicator can be extremely useful in catching scalp opportunities, a DARK RED/GREEN represents a REGULAR divergence, while a SALMON/LIGHT GREEN color represents a HIDDEN divergence.
The moving average: The moving average built into this indicator is depicted as an aqua or yellow line, when the oscillator is moving in an uptrend, the moving average will appear aqua, when the oscillator is in a downtrend it will appear yellow. Use this as confirmation bias or as the third derivative of market position.
Oscillator Colors: The Oscillator color is an important thesis of this indicator. When the line is green, it means the market is effectively in an uptrend, when it is red, it means the market is in a downtrend. Use this to prevent longing in a serious downtrend and vice versa.
If you have any questions regarding the indicator(s), feel free to reach out to me in the comments or through Direct Message!!!
Safe Trading, Don't get Rekt
-CheatCode1 <3
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Fixed Arithmetic error within the lookback variables
This is very good. I have made some changes to make it more suitable for myself and to integrate it into the system I am using and how I personally view the information. The ma I use to provide 2 bgcolors to read trend that way, I have added 4 types of flags whenever a divergence is detected. ( I also stuck a stock TSI in for confluence with a percentage indicator). No settings were changed as they are spot on. Thank You for an excellent tool.
CheatCode1
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@Mozz7, Hey man! Awesome to hear you found some value out of it! I also have been implementing indicators that offer a wide variety of integers (such as an on balance volume) and converting them to unit intervals using the true strength index function. I will have more indicators using the CCR as a base that offer more ways to generate an edge. Good luck!
The ma I use to provide 2 bgcolors to read trend that way, I have added 4 types of flags whenever a divergence is detected.
( I also stuck a stock TSI in for confluence with a percentage indicator).
No settings were changed as they are spot on.
Thank You for an excellent tool.