daproject85 wrote: Mon Oct 05, 2020 12:05 pm
What is the purpose of this indicator?

Got this from Investopedia:::

KEY TAKEAWAYS
The derivative oscillator is the difference between a double-smoothed RSI and an SMA of the double-smoothed RSI.
The derivative oscillator is frequently shown as a histogram.
Zero line crossovers are one way to generate trade signals with the indicator. Divergence may also be used.
Understanding the Derivative Oscillator
The technical indicator is a more advanced version of the relative strength index (RSI) that applies moving average convergence-divergence (MACD) principles to a double-smoothed RSI (DS RSI) indicator. The indicator is derived by computing the difference between a double-smoothed RSI and a simple moving average (SMA) of the DS RSI. The indicator's intent is to provide more accurate buy and sell signals than the standard RSI calculation.

The MACD is derived by subtracting the 12-period exponential moving average (EMA) from the 26-period EMA. It is in this way that the derivative oscillator uses MACD principles, since the derivative oscillator is also derived from subtracting the SMA from the double smoothed RSI.

The indicator can be used on any time frame.

Derivative Oscillator Usage
The derivative oscillator is used in the same way as the MACD histogram. Positive readings are considered bullish, negative readings are considered bearish, and crossovers above and below the zero line signal indicate potential buying and selling opportunities. Traders may also look for divergence with the security's price, which could be an indication of an upcoming reversal in the prevailing trend. This happens when the indicator falls and price rises or when price falls and the indicator continues to rise.

Traders should consider using the derivative oscillator in conjunction with other forms of technical analysis, such as price action analysis and chart patterns.

naluvs01 wrote: Fri Jan 08, 2021 3:04 pm Hi Mr. Tools,

I found a mq4 version of the Synthetic Vix. If you could add a smoothing option like the one I found here with color change alerts, that would be awesome. Thank you again in advance for your consideration.

Made this one, it's mtf, you can invert the values, and it's mtf. The coloring and alerts are on vix slope change.
Also has a stochastic vix option and band option.

mrtools wrote: Sat Jan 09, 2021 6:43 am

Made this one, it's mtf, you can invert the values, and it's mtf. The coloring and alerts are on vix slope change.
Also has a stochastic vix option and band option.

Nice job, mrtools. Set up as in the pic, it keeps me in the trade without much worries. Thank you!

[quote=RplusT post_id=1295426434 time=1610174444 user_id=4866937]

So you put on two instances of the indicator - one inverted and one not - good idea. Looks a bit like an ADX or the newly designed random walk indicator this way.
Thanks.
One thing I'd like to know, MrTools: why is -1 here the pivotal point (uptrend vs downtrend) and not 0?
Can you see the entries and exits?

RplusT wrote: Sat Jan 09, 2021 5:40 pm

Nice job, mrtools. Set up as in the pic, it keeps me in the trade without much worries. Thank you!


VIX inverted.JPG

u always find innovative ideas out of indicators ... looks very interesting.

Well, haven't traded it yet. That will happen on Monday. But by the look of it, I find it most intriguing that it not only may keep me in the trade but I may be able to trade retracements with confidence and even more, I can add on. I always wanted to get a lot more out of a trade once it's on a nice move. Let's see how it works out in a real trading environment.

RplusT wrote: Sat Jan 09, 2021 5:40 pm

Nice job, mrtools. Set up as in the pic, it keeps me in the trade without much worries. Thank you!


VIX inverted.JPG

Nice work..you just gave me an idea

RplusT wrote: Sat Jan 09, 2021 11:19 pm Well, haven't traded it yet. That will happen on Monday. But by the look of it, I find it most intriguing that it not only may keep me in the trade but I may be able to trade retracements with confidence and even more, I can add on. I always wanted to get a lot more out of a trade once it's on a nice move. Let's see how it works out in a real trading environment.

I'd be interested to hear what you think of it.
Be prepared for something like this, though.

RplusT wrote: Sat Jan 09, 2021 5:40 pm Nice job, mrtools. Set up as in the pic, it keeps me in the trade without much worries. Thank you!

Ha! Now that's creative. Did you insert 2 x VIX into one subwindow with one version using inverted option? Smart

Ganesh wrote: Thu Jan 14, 2021 1:36 am Super Passband Filter.mq4Hi,mrtools, can you add on-chart arrow and vertical line to this attached indicator when line exit from the upper and lower band [ Line exit from overbought and oversold zone]

Arrows added, optimized the code somewhat, and changed out the mtf to use the lighter mtf.