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05/25/2022 |

TrendSpider Software Update: New Indicator Release – Experimental AVWAP & Dovovan Wall’s Volume-Weighted Average Range & Others

Hello, everyone! Today we are excited to announce a bunch of new (some experimental) indicators to the platform! They include Fractal AVWAPs (Experimental), Anchored VWAP Oscillator (Experimental), Williams Fractal Envelope (Experimental), Volume Weighted Average Range by Donovan Wall, Average Directional Index Rating, and the Double Smoothed Stochastic. Let’s dive in!

Anchored VWAP Oscillator (Experimental)

The Anchored VWAP Oscillator illustrates the degree of support and resistance strength by using a set of VWAPs anchored to Willams Fractals.

Green bars: percentage of AVWAPs built off Fractal Highs that are below the price action (“imposing increased support”).
Red bars: percentage of AVWAPs built off Fractal Lows that are above the price action (“imposing increased resistance”).

How this indicator is built:

  • We build Williams Fractal with a given length
  • We build an AVWAP from each Fractal point

For every candle, we do the following:

  • Take 10 of the most recent AVWAPs off Highs and 10 of the most recent AVWAPs off Lows
  • Calculate the percentage of AVWAPs built off Fractal Highs that are below the price action (painted as green histogram)
  • Calculate the percentage of AVWAPs built off Fractal Lows that are above the price action (painted as a red histogram)

Williams Fractal aVWAPs (Experimental)

Fractal AVWAPs is a new, experimental style of AVWAP indicator developed by our engineering team. This indicator takes the last five high and last five low Williams Fractal candles and builds AVWAP’s off each of them. The fractal length is customizable, but the default is set to five (5). One can also customize the colors of the AVWAPs that are drawn.

For those unfamiliar with Williams Fractal, a buy or sell signal will be drawn during a five candle period if the middle candle (3rd candle) contains either a highest high or lowest low relative to the four candles that surround it (2 on each side). A trade is opened when price breaks below or above the most previous fractal level. Note in the image below that aVWAPs are drawn off of the five most recent Williams Fractal buy and sell signals.

As these candles represent important highs and lows for traders that utilize Williams Fractal, we thought it would be an interesting experiment to add the additional aVWAP layer. Since a standard trade that’s taken off the Williams Fractal requires price to break a previous high or low, our theory is here that the aVWAP layer could provide an additional early signal to the trader ahead of the Williams Fractal trigger.

Williams Fractal Envelope (Experimental)

The Williams Fractal Envelope takes the standard Williams Fractal and builds upon it. From the Williams Fractal buy or sell signal, a horizontal line is drawn. This horizontal line will continue to the right until a new Fractal point in the same direction emerges. From there, a new horizontal line is formed.

This presentation makes visualizing the break up or down on the previous Williams Fractal level much easier to see. The only editable settings on this indicator are the length of the Williams Fractal and the color, stroke, and fill opacity.

In addition, alerts can be set on the horizontal line to let the trader know when price breaks in either direction.

Volume Weighted Average Range by Donovan Wall

The Volume Weighted Average Range indicator is a multi-dimensional indicator that contains several different elements. First, note that it builds a conventional VWAP. The VWAP will change color depending on whether price is currently trading above or below it. If price is above, then it’s green. If price is below, then it’s red. It also colors the candles in a distinct way:

Red Candle = Below VWAP

Green Candle = Above VWAP

Orange Candle = Crossing VWAP

Next, it computes VWAR (volume-weighted average range) in which it weights “Range” (High – Low) by volume. In addition, it builds multiple lines above and below the VWAP. Each of these lines is equal to (VWAP ± VWAR * Multiple.) The multiples are preset as fib levels, and can be adjusted at the traders discretion.

Average Directional Index Rating

The Average Directional Index Rating is a smoothed-out version of the Average Directional Index. Available input parameter determines bar offset between two ADX indexes. The ADXR is calculated by adding both ADX indexes and dividing the sum by two.

This indicator offers custom inputs for:

  • ADX
  • ADXR
  • Level 1
  • Level 2
  • MA Type

Double Smoothed Stochastic

The DSS Bressert indicator was developed by Walter Bressert. It is smoother than a regular stochastic indicator but can be interpreted in generally the same way with 30 considered oversold and 70 considered overbought.

The calculations start with a normal raw stochastic. This stochastic is smoothed by an exponential moving average before another raw stochastic is taken of the result. Then a second exponential moving average of the same period is applied to this second stochastic.

This indicator offers custom inputs for:

  • Length
  • Smooth
  • Signal
  • Overbought/ Oversold
  • MA Type

We hope you find these new indicator additions helpful, and as always with experimental indicators, they are just that; experimental. These indicators are brand new, and therefore, we do not know the full extent to which they might prove useful.