unicorn

Hi Bruce; The adx does not have an internal stochastic. You have probably forgotten how it is computed; you need to freshen up your knowledge. This is the code for adx computation: function adx_1( adx_periods) { PlusDM= IIf(High>Ref(High,-1) AND Low>=Ref(Low,-1), High-Ref(High,-1), IIf(High>Ref(High,-1) AND Low<Ref(Low,-1) AND High-Ref(High,-1)>Ref(Low,-1)-Low, High-Ref(High,-1), 0)); DIPlus= 100 * Wilders(PlusDM,adx_periods) / ATR(adx_periods); MinusDM= IIf(Low<Ref(Low,-1) AND High<=Ref(High,-1), Ref(Low,-1)-Low, IIf(High>Ref(High,-1) AND Low<Ref(Low,-1) AND High-Ref(High,-1)<Ref(Low,-1)-Low, Ref(Low,-1)-Low, 0)); DIMinus = 100 * Wilders(MinusDM,adx_periods) / ATR(adx_periods); Diff= abs(DIPlus - DIMinus); DISum= DIPlus + DIMinus; ADX_value = 100 * Wilders(Diff/DISum, adx_periods); return ADX_value; } ATR(adx_periods) is the average true range, which in your mt4 code is different from the actual formula (of the TR true range), perhaps on purpose. In order to understand what I am saying you should test this adx code (plot the result), alongside with the adx function of mt4. You need to know what your code is doing. Then plot the result of your computation as coded in your vmar code and compare it to the stochastic_adx, as implemented by the code I have used. Finally, it is a good idea to plot the coefficients that will be used in the vidya formula and compare the results. I have already posted my code for the coefficients. It should be noted that the Wilders moving average " Wilders(quantity, adx_periods) " is in effect an exponential smoothing average with equivalent_ema_periods = 2 * wilders_period -1; Test it; Your test should be: // test code { w_periods = Param("periods",9, 2, 55, 1); w=Wilders(C, w_periods); equivalent_ema_periods = 2*w_periods -1; z= EMA(C, equivalent_ema_periods); Plot(w,"Wilders", colorBlue, styleLine); Plot(z,"ema", colorRed, styleLine); } do the math: coeff_ema = 2/( ema_periods +1) = 2/( 2*w_periods -1 + 1) = 1/w_periods Of course, the coefficients of the wilders_ma are 1/w_periods and (w_periods-1)/w_periods You need to know what your code is doing to these coefficients, because you are actually modifying these computations in order to fine-tune vmar3. cheers. Unicorn.

Thank you Walter. I am looking forward to this. That is correct. OK, looks good. Similar to a moving average crossover. cheers. Unicorn.

Hello Bruce, Walter and Sparrow; I think you will like this. Sparrow if you have the time, please code it in Ninja Trader. I believe that it will help in understanding the vidya behavior, and in the selection of the appropriate parameters. Have fun. Unicorn. vidya periods.afl.txt

Of course, Bruce. Go ahead and plot the cmo(n). Compare it to the rsi(n). I trust you know the code for stochastics. In the stochastics computation, replace the close by the adx. Now you have stochastics_adx. Have fun. Try the stochastic_rsi = stoch( rsi(rsi_periods), stoch_periods) cheers. Unicorn.

correction: cmo(n) = 2* ( rsi(n) -0.5 ); for raw rsi i.e. in the (0,1) range; re-scaling of rsi in the range (-0.5, 0.5) and multiplying by 2 or cmo(n) = 2* ( rsi(n) -50 ); for rsi in the (0,100) range; re-scaling of rsi in the range (-50, 50) and multiplying by 2. Unicorn.

You are welcome, Walter. I understand that Sparrow has already programmed the vma_2, so that you can get both the signal and the rainbow basis on Ninja Trader. Looking forward to your research. regards. Unicorn.

Hello Bruce, Sparrow, Walter; Chande has introduced the concept of varying the coefficient of the exponential moving average, f= 2/(n+1), by multiplying this coefficient by a volatility measure or by a trendiness measure, f_chande: factor = f * f_chande; vidya = Variable Index DYnamic Average, is the adaptive moving average (AMA) of the price, usually the Close. vidya = AMA( price, factor); which as you know is: vidya = factor * price + (1-factor) * previous_value(vidya) In his book, Chande uses among other measures the absolute value of the Chande Momentum oscillator (CMO), abs_cmo cmo(n) = 2*rsi(n) -0.5; re-scaling of rsi in the range (-0.5, 0.5) abs_cmo = abs(cmo); factor = f * abs_cmo; vidya = ama (C, factor); So, this is the original formulation of Chande Vidya (to be precise, the original formulation that uses one of the 3 volatility / trendiness measures cited in the book). now, abs(cmo) is very close to adx; as a matter of fact, Chande claims that it is superior to adx. From this point, using stochastic_adx = stoch (adx (adx_periods), stoch_periods) is a very smart and natural evolution. :thumbs up::thumbs up::thumbs up: I don't know who came up with this idea; I first saw it in Walter's reference of Bemac's fantail. THANK YOU Walter. Hope this clarifies things. Now, for the purposes of this vmar research, I had initially restrained stoch_periods to be equal to adx_periods, in order to reduce the number of combinations. After Walter's interest in the behaviour of the signal vma_1(3,3) with respect to the rainbow_base vma_1(4,8) I figured that he might need the option to adjust stoch_periods, so that he can look into different settings. cheers Unicorn.

Hello Walter. Another cable trade - scalp; this time using vmar_2 for "signal" and "rainbow base" As always, your comments will be appreciated. cheers. Unicorn.

Hello Walter, Bruce, Sparrow. In this modification I have the functionality of selecting a different value for the stochastics periods from the value of adx periods. Have fun. cheers. Unicorn.

Hi Walter; Indicators: cyan line (signal) is vmar_1(3,5) black line is ema(3) of signal line red line (rainbow base) is vmar_1(5,5) vmar_1 code is attached. Enjoy... cheers, Unicorn.

Hello Walter; cable 30-10-2007. snapshot 1 is the trade. snapshot 2 are the two scalps. The second scalp takes place on falling momentum (as estimated by the cci). It is a tougher call (at least to me). The entry to the second scalp is not so clear to me. I would appreciate your remarks Walter. Would you also comment on the trades of post #67? Thank you. cheers. Unicorn.

Noisy? Why? Walter please elaborate. I have not used tick charts that much; I would like your point of view. currency Futures in the interval 02:00 EST - 07:00 EST do not have much volume; tick bars are forming slowly; that's why I picked 22T. Do you get better information from the 55T?

Walter, I think you will like these as well. Your comments and annotations will be appreciated. Cheers. Unicorn.

cyan Line is: vmar_1(ema_periods=3, adx_periods=3) black line is: ema( vmar_1(3,3), ema_periods=3) Please note that I am using the full Vidya implementation as initially described by Tushar Chande in his book; where the Adaptive ma (AMA) coefficient = (ema coefficient) multiplied by the (stochastic adx). i.e. function Vidya_adx(adx_bars, ema_periods ) { g = ADX(adx_bars); adx_min = LLV(g, adx_bars ) ; adx_max = HHV(g, adx_bars ) ; diff = adx_max - adx_min; stoch_adx = IIf( diff != 0, (g - adx_min) / diff, 0 ) ; f= 2/( ema_periods+1); coefficient = f * stoch_adx; zVidya=AMA(C, coefficient); xvidya = MA(zvidya,2); return xVidya; }

Walter, Am I correct in stating that you time the entry when the t3_cci(n,5) crosses the t3_cci(n,10) or in general when the t3_cci(cci_periods1, fast_T3_periods) crosses the t3_cci(cci_periods2, slow_T3_periods) ?? where 1) cci_periods1 = cci_periods2 (always) 2) slow_T3_periods is 2 times the fast_T3_periods (usually) Thank you. cheers. Unicorn.

Hello Walter; In another thread you mentioned that you believe 22 tick charts are the best or the most appropriate. That was for the Russel. I have a couple of questions. Q1: Would you please comment on the 22 tick chart being the most appropriate for viewing price action. Q2: Your thoughts about the 110 tick - 22 tick chart on forex (futures). The first chart has basically the same structure as the time based. The second chart has cleaner price action; the magenta line rejection on the 5 min chart has been transformed to good momentum (WIDE RAINBOW) on 110 tick chart and a magenta line rejection on the 22 tick chart. Please mark your entry and exit on the charts. best regards. Unicorn.

Walter, The first screen-shot depicts a nice scalp. The second one, although it has a nice magenta line rejection, I cannot pinpoint the entry. Your comments are welcome. cheers. Unicorn.

Walter; I am not using MT4. I had a look at it in the past, but did not like the "programming Language". However, I do read indicators in mq4. This version should not repaint. It was coded by feb2000 (MartinG) for this specific purpose.

I sure did. Thanks Bruce. regards. Unicorn.

Hello Walter and Cattus; The implementation of the fisher oscillator that you are using is incorrect.:helloooo: This implementation goes back to the "step rsi" and "step stochastics" indicators, that start the computation loops at the last bar and propagate the calculations to the past. This is a trick that makes the step indicators look good but of course has the result of re-computation and thus "re-painting". The iFisher stochastic uses the inverse Fisher transform inverse_fisher_value = 0.5 * log ( (1 + osc_Value) / (1 - osc_Value) ) ; on the stochastic oscillator after it has been rescaled to have values in the range (-1, +1) osc_value = 2 * stoch(fast_periods, slow_periods) -1; It is a stochastic that has been stretched a little bit. Similar to iFisher_rsi as explained by John Ehlers at his site. If you like try the attached implementation (developed by member "feb2006" at the site where you probably got your mq4). Let us know your evaluation. Fisher_m11.mq4

Well, if you thought that the noise was enough, eurusd had a Friday evening surprise. Walter could you please mark your entry and exit on this chart? :thumbs up::thumbs up::thumbs up: Thank you for your help and patience. :thumbs up::thumbs up::thumbs up: NB. I think that these are enough questions and charts for one day. Unicorn.

This is a bit messy. I am really anxious to know: 1) which trades you see; please mark them 2) at what point you would have thought that you had enough of it. Thank you Walter. Unicorn.

and furthermore: Q4: Is this move sufficiently large to qualify as a vmar-icon? Q5: Do you have guidelines with respect to the size of price move 1 (intention), in order for it to qualify as a decent intention for a vmar icon? cheers; Unicorn.

Hello Walter; It seems that you missed my two questions on the previous message. Please have another look at it. Here is more; eurusd currency futures; times are gmt+2, date is European format. Q3: would you monitor the 3 min chart as well, so that you can identify a vmar icon on the 3-min, if the move is so fast that there is not a vmar-icon on the 5 min chart?? cheers; Unicorn.

oooops; I forgot to attach the screen-shot.