Market Swing Indicator Idea

ranesh 2009.11.25 03:37 #1

rosscub:
I have an idea for an indicator if anyone is interested in coding it for everyone to use. It would measure the distance of swing highs and swing lows and provide an average for each. You could use fractals to determine the swings. See the attached image for an example.

This information could help the trader:

a. determine trend direction (ie. swing lows are longer than swing highs)

b. determine stop loss positioning

c. determine profit targets.

Hopefully this will be useful to the community.

Happy trading,

Art

I've been searching for something like this but haven't found one yet. It'll be great if someone could help code this. It would be useful to be able to see the avg. swing low/high in the TF used for the day and how many pips the market has moved from the last swing.

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ZTrader 2009.11.29 16:14 #2

If I am reading your suggestion correctly, you are looking for an indicator that would measure the distance from a high point (as indicated by a fractal) and the previous low, and similarly would measure from a low point to its previous high. Then 'height' of the up moves would be averaged and the 'height' of the down moves would be averaged and this information would be presented to indicate trend direction. Would you be looking for just the values to be displayed, or some kind of oscillator to be created, for instance by subtracting the average down move height from the average up move height?

My initial thought is that this kind of indicator would not provide more useful info than a simple slope or moving average difference oscillator, and would likely have more lag since the fractals are only available several bars after the market has turned.

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prasxz 2009.11.29 22:20 #3

hi

it will be better using highlow zigzag with parameter set to 1

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rosscub 2009.12.08 03:08 #4

ZTrader:
If I am reading your suggestion correctly, you are looking for an indicator that would measure the distance from a high point (as indicated by a fractal) and the previous low, and similarly would measure from a low point to its previous high. Then 'height' of the up moves would be averaged and the 'height' of the down moves would be averaged and this information would be presented to indicate trend direction. Would you be looking for just the values to be displayed, or some kind of oscillator to be created, for instance by subtracting the average down move height from the average up move height? My initial thought is that this kind of indicator would not provide more useful info than a simple slope or moving average difference oscillator, and would likely have more lag since the fractals are only available several bars after the market has turned.

You have the idea right. Hopefully this information can be used to help determine how for away to place stops (beyond the average swing), or to provide an idea when the market may turn again (if price has moved beyond the average swing distance, it may be a good time for a swing back).

Another idea similar to this one is to know how many bars in the average swing high and low(full cycle). This number could then be used for the input into other oscillators. Instead of using the default "14", you could use the average number of bars in wave cycle.

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rosscub 2009.12.08 14:06 #5

cockeyedcowboy,

Yes, if there were two fractals in one direction, you would have to recalculate for that swing. This wouldn't effect the overall usefulness of the indicator though. You can omit the most recent swing (start one swing back) when performing the averaging.

I have looked around for this type of indicator, including the codebase, but I haven't found anything like it.

Thanks.

Art

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cockeyedcowboy 2009.12.09 10:32 #6

rosscub:
cockeyedcowboy,

Yes, if there were two fractals in one direction, you would have to recalculate for that swing. This wouldn't effect the overall usefulness of the indicator though. You can omit the most recent swing (start one swing back) when performing the averaging.

I have looked around for this type of indicator, including the codebase, but I haven't found anything like it.

Thanks.

Art

I looked at it last week as I am interested in such an indicator but not one that averages past waves and (trys too) pridict the next wave length. I look at things from a cycle point of view. 2 waves make one cycle if the down wave is shorter then the up wave before it, the trend influance is up, and vise verser for down. if both are near equal it ranging or consuladating depending or the hight of the price range. I dont beleive that price cycles have any consistancy in time nor amplitude of price moves, therefore any attempt to predict the future cycles is a waste of time. It is best to let the market tell you were the begining and end of each cycle occures.

Anyways, I know its there, dont know what it was called, but I looked at it last week, will try to see if I can find it later.

Keit

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cockeyedcowboy 2010.05.18 18:54 #7

rosscub:
You have the idea right. Hopefully this information can be used to help determine how for away to place stops (beyond the average swing), or to provide an idea when the market may turn again (if price has moved beyond the average swing distance, it may be a good time for a swing back). Another idea similar to this one is to know how many bars in the average swing high and low(full cycle). This number could then be used for the input into other oscillators. Instead of using the default "14", you could use the average number of bars in wave cycle.

rosscub

Two things; One, from the screen shot you posted there are sometimes two ups or downs together that would not make for good results as the code would have to make other determinations as to which ones to use, and; Two, I beleive there is already an indicator that does what you ask.

You will have to search the code base 4 indicator directory to fine it but it is there I remember looking at it. It uses the current wave movement and direction verses the waves in the opperset direction to determine direction and strength.

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And while your searching that code base you may fine other things that you may take a liking too.

Keit

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