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Condition Identifier Indicator?

  • #1
  • First Post: Edited May 1, 2012 5:10pm Apr 29, 2012 5:55pm | Edited May 1, 2012 5:10pm
To be coded:

The idea is to create an indicator that is able to identify the underlying market condition. There are 2 main conditions, a trending and a ranging market.

The following is how to determine the different conditions:

Close-low (of Bull candle)= Bullish pips
Close-low (of Bear candle)= Bullish pips
High-Close (of Bull candle)= Bearish pips
High-Close (of Bear candle)= Bearish pips

Total Bullish Pips of x Period/Total of x Period Pips = y
Total Bearish Pips of x Period/Total of x Period Pips = z

If y is greater than z, it's more bullish then bearish. If z is greater than y, it's more bearish then bullish.

y*100 = % of Bullish Pips
z*100 = % of Bearish Pips

Bull Pip% -Bear Pip% = x or -x

Below is how to classify the different pip percentages:

0 to 25/ Major Bullish Range
25 to 50/ Minor Bullish Range
50 to 75/ Minor Bullish Trend
75 to 100/ Major Bullish Trend

-0 to -25/ Major Bearish Range
-25 to -50/ Minor Bearish Range
-50 to -75/ Minor Bearish Trend
-75 to -100/ Major Bearish Trend

The pips% should be plotted on a 100 to -100 histogram. The classification label should be displayed in the top right corner of the chart and should only change at the close of the last bar.
  • #2
  • Apr 30, 2012 3:22pm Apr 30, 2012 3:22pm
below 50 is classified as what ???


Quote
...

50%-62.5% Major Range
62.5%-75% Minor Range
75%-87.5% Minor Trend
87.5%-100% Major Trend

...
Trader Keit ... Methods Of A Dirt Road Mad Man....
  • #3
  • Apr 30, 2012 7:04pm Apr 30, 2012 7:04pm
Quoting CockeyedCowboy
below 50 is classified as what ???
Anything below 50% is not classified, because it is not the prevailing pip %. The total bullish or bearish pip% that is above 50% can only be put into a specific class.
  • #4
  • May 1, 2012 7:13am May 1, 2012 7:13am
how would you handle the area of the histogram between +50 through to -50, your need to remove this area on the histogram? Or use a different scale?

Keit



Quoting Kas1
Anything below 50% is not classified, because it is not the prevailing pip %. The total bullish or bearish pip% that is above 50% can only be put into a specific class.
Trader Keit ... Methods Of A Dirt Road Mad Man....
  • #5
  • May 1, 2012 10:48am May 1, 2012 10:48am
Quoting CockeyedCowboy
how would you handle the area of the histogram between +50 through to -50, your need to remove this area on the histogram? Or use a different scale?

Keit
Good question, this is where I made a mistake. Yes, you are right, a different scale would need to be used. It should be from 50 to -50 and the classification numbers should be divided by 2. So 48% would be the same as the 96% class. The negative numbers would be for bearish pip%.
  • #6
  • May 1, 2012 4:16pm May 1, 2012 4:16pm
Kas

I am not giving you a hard time, but making you think of what your really want...

I have see people write strength indicators and other things that have an out put in the -/+ range. To explain I will use a strength indicator... Most people will code it to have a -/+ range to indicate strength and weakness. plus for strength and minus for weakness, This is technically incerrect. You should be, as in this case, measureing strength only as in the amouth of strength or the lack there off. To easily see this if one wants to measure the temperture one would use a thermomerter and can correctly state how hot it is out side, but to measure cold one can not do theres no device to masure cold why because in sicence one looks to measure only one variable in this case heat or the lack there of. a thermometer can only measure heat as there is no such thing as cold, (try to tell that to someone in northern Canada that).

All of this is to have you think about useing a scale of 0 to 100 instead.

Keit




Quoting Kas1
Good question, this is where I made a mistake. Yes, you are right, a different scale would need to be used. It should be from 50 to -50 and the classification numbers should be divided by 2. So 48% would be the same as the 96% class. The negative numbers would be for bearish pip%.
Trader Keit ... Methods Of A Dirt Road Mad Man....
  • #7
  • May 1, 2012 5:03pm May 1, 2012 5:03pm
Quoting CockeyedCowboy
Kas

I am not giving you a hard time, but making you think of what your really want...

I have see people write strength indicators and other things that have an out put in the -/+ range. To explain I will use a strength indicator... Most people will code it to have a -/+ range to indicate strength and weakness. plus for strength and minus for weakness, This is technically incerrect. You should be, as in this case, measureing strength only as in the amouth of strength or the lack there off. To easily see this if one wants to measure the temperture...
I appreciate you making me think about it, that way I can make changes for the better. I can see now that dividing it in half won't change the fact that you would still have a gap between 0 and 25.

So instead of taking the prevailing pip%, I have thought about doing this:

bull pip% - bear pip% = x or -x

That would allow it to be plotted on a 100 to -100 histogram.

So then the classes would be as follows:

0 to 25/ Major Bullish Range
25 to 50/ Minor Bullish Range
50 to 75/ Minor Bullish Trend
75 to 100/ Major Bullish Trend

-0 to -25/ Major Bearish Range
-25 to -50/ Minor Bearish Range
-50 to -75/ Minor Bearish Trend
-75 to -100/ Major Bearish Trend

That should do it
  • #8
  • Last Post: May 3, 2012 1:49am May 3, 2012 1:49am
Every candle has a negative and positive 'charge'. By identifying if a candle had more buyers or sellers, I think you are able to determine the overall strength or weakness of a bar. A candle that opens and closes up, indicating buyers, doesn't mean there can't be signs of more selling pressure hidden in the wick or from the high to close.
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