I haven't seen this indicator for almost a decade. That was from the TSD days! Nice revival Mrtools & Billbroch
Let's recap on Adeo's original post back in 2011 about this indicator.
From Forex-TSD:
The PAL is an indicator of Current Market Values
Thank you to the providers and members of this forum.
This forum has avoided the tendency to deteriorate into negatives witnessed on just about every other forum.
Perhaps that happens when you charge a fee.
The contributors and participants here are simply refreshing; a tip of my hat to Mladen in particular.
With little to offer in return, PAL is presented in hopes that those interested can help take it to its potential.
Disclaimer: a selfish motivation seeks to improve PAL results for trading before governments prevent our access to the markets.
Trusting the moderators can remove the thread if it proves worthless, here goes...
A picture is worth 1,000 words:
...a few more words:
PAL (PipsALot): near real-time indication of market sentiment with occasional leading indication
PAL (core value) is formed from the High-PreviousLow and Low-PreviousHigh
Combined and rearranged, the result is High+Low-PreviousHigh-PreviousLow (H+L-PH-PL)
In trends, the bias results in a positive value for ascending trends and negative values for descending trends
During ranging action or when transitioning between trends, the value is near zero
PAL essentially indicates the market sentiment – at the present time
Sometimes PAL is a leading indicator, the change in market sentiment is reflected in PAL before it can be seen in the Close
Other values derived from PAL and related parameters (all are works in progress):
- aPAL-average of PAL over n bars
- PALArea – Integral (sum or area) of PAL over n bars
- PALSpan – ATR-like value derived from H & L
- PALTOW – Tug-O-War, formed from ratio of pH & pL
- PALMomentum – composite value of PAL, PALSpan (and Volume?)
- PALModerated – uses Close instead of H & L
- PALDir – Direction; only dominant vector presented
As sentiment must occur first in lower timeframes, multi-timeframe views of PAL confirm strong sentiment changes
Credit Mladen for his extreme scrubbing and cleanup of the indicator(s).
