A very simple indicator based on the TRIX histogram
The Formula :
In english it reads :
...if the current TRIX histogram bar is greater than the previous bar
...and the 3rd bar previous to the current bar is greater than the current bar
...and the 3rd bar previous to the current bar is greater than the current bar
...and the current bar is less than zero
I use a 5 or 6 period TRIX set as a histogram which is displayed in the price pane.
I use a 5 or 6 period TRIX set as a histogram which is displayed in the price pane.
The BLINE indicator in the example below prints a white triangle along the bottom of the study
when-ever the formula's conditions are met.
when-ever the formula's conditions are met.
The TRIXh and MACDh are very similar indicators in the way they are designed...Either one shows
the "intensity" of downward price movements which can be used for anticipating reversals
and judging their potential strength. They are more like oscillators than trend following indicators.
The BLINE can be used as a stand alone indicator for gaining a 'heads up' of overall price action direction.
But it can print far too often, especially on very short term charts...Like the stochastic,
the BLINE is best used in conjunction with other trade signals for confirmation of patterns.
the "intensity" of downward price movements which can be used for anticipating reversals
and judging their potential strength. They are more like oscillators than trend following indicators.
The BLINE can be used as a stand alone indicator for gaining a 'heads up' of overall price action direction.
But it can print far too often, especially on very short term charts...Like the stochastic,
the BLINE is best used in conjunction with other trade signals for confirmation of patterns.
Does it work?
Here are some examples on long term and short term charts...on time and tick based charts.
Again the small white triangles, located along the bottom of the study window
print when-ever the BLINE formula parameters are met.
Again the small white triangles, located along the bottom of the study window
print when-ever the BLINE formula parameters are met.
30 minute chart
6 minute and 3 minute charts
30 tick entry and exit chart
45 tick entry and exit chart
75 tick and 60 tick results
90 tick results
"How to" use the BLINE
Five different time frames using one signal generator...
(7 time frames counting the 6 min and 3 min that are not shown here but were firing signals)
Although the BLINE printed at differnt times on the different charts it does work well on them all.
Price Action is Price Action regardless of the time of day.
Although trading in the after major market hours is very slow it can be useful
for gaining a "feel" of how indicators react to price action and variations in time frames.
Here's an exercise in patience...
The charts below cover a one hour time period for a 10 point gain. That same gain during
the major market hours would happen within 5 to 10 minutes.
