TrendSpider Software Update: 6 New Indicators + Weighted Close Input
Hello Everyone, and welcome to yet another software update from TrendSpider. In this update, we are introducing six new indicators for you to explore. Details below the jump.
In this update, we are releasing six new indicators by popular demand.
Quantitative Qualitative Estimation
This lower indicator is based on the Wilder’s RSI but is different because it plots a smoothed 5-period supplement as a single line. It is used to identify overbought and oversold areas as well as identify possible divergences.
Inside Bar Colored
This simple indicator will color any inside bar candles on the chart in a different color than other candles. This helps you easily and quickly identify inside bars. It is similar to the Candlestick Pattern for Inside Bars, as well as the Strat indicator which can also highlight them.
Polychromatic Momentum Oscillator (Lower)
The Polychromatic Momentum Oscillator is a special type of momentum indicator that is similar in some ways to RSI and MACD. It is designed to measure and plot the momentum of a priced asset. This indicator utilizes flexible look-back periods, brownian motion processes to generate a more fluid momentum oscillator which can be used to identify overbought and oversold conditions on any price chart and timeframe. This indicator has only one input: the default length (or look-back period), as well as the standard price source option. You can customize the color of the line, the color of the zero line, and that’s it. Very simple and powerful.
The KDJ indicator contains three separate lines that are plotted on a lower indicator panel. It is based on the stochastic indicator but is modified to be similar in function to other variants of the stochastic, such as Lane’s Stochastic. This indicator has three output lines and several settings you can use to define its function:
- K Length = default 9
- K multipler = default 3
- K smoothing factor = default 3
- D length = default 3
- D multipler = default -2
- MA type = default Wilders MA
You can identify signals in this indicator by watching for the relative position of the lines on the chart, any divergences from the price action, and the crosses of the various lines generated by the indicator.
Guppy Moving Averages
The Guppy indicator is a set of moving averages of defined lengths, famously known for making identifying the overall direction of trend easy for the human eye. Spotting trend with Guppy is as simple as identifying the direction the lines are heading. The crosses between the various lines on the indicator can indicate a trend change starting or completing. TrendSpider’s Guppy indicator implementation provides two zones – an upper and lower – to make it easier to view. This indicator generates 12 total lines: 6 fast-moving averages and 6 slow ones. The fast-moving averages are colored green by default while the slow ones are colored red by default. The inputs are as follows:
- Fast 1 = default 3
- Fast 2 = default 5
- Fast 3 = default 8
- Fast 4 = default 10
- Fast 5 = default 12
- Fast 6 = default 15
- Slow 1 = default 30
- Slow 2 = default 35
- Slow 3 = default 40
- Slow 4 = default 45
- Slow 5 = default 50
- Slow 6 = default 60
In addition to the period lengths for each of the moving averages, there are also a few more options:
- MA type = default SMA
Additionally, you can configure a fill color for each of the sets (fast and slow) to make it easier for you to identify trend direction.
Schaff Trend Cycle
The Schaff Trend Cycle indicator has been one of the most popular requests from traders over the last few months. This indicator is designed to identify both market trend direction as well as ideal buy and sell points. It was designed by a forex trader named Dough Schaff, where it gets its name, and is another type of oscillator designed to be smooth and easy to understand. It utilizes similar math to the MACD, using similar moving averages, but distills it down into a single line with clearly defined buy and sell zones on it. This indicator features a number of inputs:
- Fast = default 23
- Slow = default 50
- Cycle = default 10
- %D1 = default 3
- %D2 = default 3
- Upper boundary = default 75
- Lower boundary = default 25
When price enters the upper boundary zone, the area between the indicator line and the boundary is colored in green. When it enters the lower boundary, the color is switched to red.
This indicator was developed for fast-moving markets and is intended to be used on lower timeframes. While many swear it is more accurate than its distant cousin, MACD, other traders may find it to be more noisy. In any case, it is now yours to explore and experiment with.
New Indicator Input
We have added a new input for many indicators under “Price Source” called Weighted Close. The Weighted Close will average the High, Low, Close, and the Close again to generate a price input that is weighted to the close price but also incorporates high and low. Open price is ignored.
That’s all for now. More updates coming soon!