Tsar wrote: ↑Wed Feb 07, 2018 2:56 pm
Based of the Theory :
MESA Adaptive Moving Average
Developed by John Ehlers, the MESA Adaptive Moving Average is a technical trend-following indicator which, according to its creator, adapts to price movement “based on the rate change of phase as measured by the Hilbert Transform Discriminator”. This method of adaptation features a fast and a slow moving average so that the composite moving average swiftly responds to price changes and holds the average value until the next bar’s close. Ehlers states that because the average’s fallback is slow, you can create trading systems with almost whipsaw-free trades.
Basically the indicator looks like two moving averages, but instead of curving around the price action, the MESA Adaptive MA moves in a staircase manner as the price ratchets. It produces two outputs, MAMA and FAMA. FAMA (Following Adaptive Moving Average) is a result of MAMA being applied to the first MAMA line. The FAMA is synchronized in time with MAMA, but its vertical movement comes with a lag. Thus, the two don’t cross unless a major change in market direction occurs, resulting in a moving average crossover system which is “virtually free of whipsaw trades”, according to Ehlers.Squeeze
What is John Carter's Squeeze Indicator?
The Squeeze is made up of 3 indicators - the Bollinger Bands, the Keltner Channels, and an oscillator. All markets move between quiet periods and volatile periods. You want to be positioned during the quiet times to take advantage of volatility or simple put - movement in price.
How does the Squeeze work?
The Squeeze indicator attempts to identify periods of consolidation in a market. In general the market is either in a period of quiet consolidation or vertical price discovery. By identifying these calm periods, we have a better opportunity of getting into trades with the potential for larger moves. Once a market enters into a “squeeze”, we watch the overall market momentum to help forecast the market direction and await a release of market energy.
What is the Squeeze Terminology?
The red and green dots along the zero line indicate if there is a squeeze. A red dot means there is a squeeze condition in effect. A green dot means that we are not currently in a squeeze. The first green dot after one or more red dots is where the squeeze is said to have “fired”. The red and blue histogram indicates momentum. If above zero momentum is increasing, the histogram will by light blue. If above zero momentum is decreasing, it will be dark blue. Inversely, the histogram will paint yellow or red to portray increasing or decreasing momentum below the zero line.
I recommend to use 'Squezeed indicator' because more Accurate and have got the Levels of High & Low.
Here there are of Squeezed MA series