A magic indicator - Please review and comment

[linkon7]

The only reason why I hid the names is to avoid biasing. We all have preset views about technical indicators. What I wanted to know first is whether a majority of us feel that the indicator is useful. If so, to what extent ? What are the flaws ? I shall also be posting more images later and after a thorough discussion I will definitely share with all of you what it is. Trust me.. there isno secret that I am hiding. Lets have an unbiased opinion first .
Regards.

Problem with any indicator is that its derived from price action. Since its not bounded, chances are it's very poor are reacting to swing points. Only way out is to draw a ema or dema of the indicator and that is used as a substitute to eliminate noise. Not impressive since in a range bound market, it'll get killed.

One advice, draw a BB(5,0.5) on the indicator to eliminate noise. That way u get the entry / exit atleast 1 - 2 bars before the ema cross...

 

[J_D]

Looks similar to Inverse Fisher Transform.. Some where in Traderji, the AFL is there.. forgot the link.. anybody having this can post for the same stock and time period posted by perfecttip..

 

[SwingKing]

The Cult of the Magic Indicator.

Let me quote what Hamilton Bolton stated about a magical indicator,

"It is perhaps ironic that to be of value an indicator must be far from ideal, subject to considerable controversy, and subject also to considerable vagaries in timing. The perfect indicator would be useless; the imperfect one may be of investment value"

There lies no indicator which is magical. Whatever perfictip posts, analyze it properly. This is not to criticize the user, but to remind everyone that investments is a world full of imperfection. Yet, money and a descent living can be made as imperfection indeed has value.

Tc

 

[trade man]

Problem with any indicator is that its derived from price action. Since its not bounded, chances are it's very poor are reacting to swing points. Only way out is to draw a ema or dema of the indicator and that is used as a substitute to eliminate noise. Not impressive since in a range bound market, it'll get killed.

One advice, draw a BB(5,0.5) on the indicator to eliminate noise. That way u get the entry / exit atleast 1 - 2 bars before the ema cross...

Dear linkon sir in this thraed u hav advised to use
draw a BB(5,0.5) on the indicator to eliminate noise. That way u get the entry / exit atleast 1 - 2 bars before the ema cross.is it for EOD chart or for intraday chart if for intraday whats the time frame.

 

[linkon7]

Dear linkon sir in this thraed u hav advised to use
draw a BB(5,0.5) on the indicator to eliminate noise. That way u get the entry / exit atleast 1 - 2 bars before the ema cross.is it for EOD chart or for intraday chart if for intraday whats the time frame.

It should work for any time frame...
Objective is to eliminate minor noise which leading momentum indicators tend to have. They peak before the price and create divergence. But sometimes, they tend to give fakes... so a filter is used as a qualifier...

 

[ravinder_1215]

Dear Perfecttip

Can you post snapshot of any 2 scripts for today?

 

[himanshu99]

Dear Friends,
In the next few days I shall be posting screenshots of some charts with an indicator below it. Please notice the crossovers at the indicator and the price movement along with it.

Please offer your valuable comments and criticism for this indicator. And we shall discuss about the indicator in more detail.

Thank you.

hello
i have this indicator latest version but i want it name first if u dont want tell in public place so send me its name on [email protected]

 

[himanshu99]

i m not say any wrong so look at this i have one another indicator which help me exit