Hello, traders, and welcome to a quick software update from your friends at TrendSpider. In this update, we’ve added three new indicators to the platform; Variable Index Dynamic Range, Fractal Trendlines, and Double Smoothed Stochastic. Details after the jump!
Variable Index Dynamic Average
Developed by Tushar Chande, the idea behind the Variable Index Dynamic Average indicator is that it’s meant to be an improved version of the common exponential moving average. It is an adaptive moving average, which means that it adapts to market volatility and smooths price, using its namesake momentum oscillator in order to do so.
Weight is assigned to ongoing data to improve sensitivity, which helps to generate better signals for both long and short-term time frames. This weighting allows it to adapt to sideways price action better than a standard moving average, as well.
Adjustments to this indicator can be made by clicking on the three dots next to its title in the indicator list. As with most moving averages, the length, price source, and offset can be fitted to an individual’s needs, as can the line stroke and color.
Fractal Trendlines (Experimental)
The Fractal Trendlines indicator is a function of the Willimas Fractal indicator. Simply, this indicator finds the two most recent points plotted via the Williams Fractal and connects them with a segment line. Additionally, the segments contain the addition of a ‘Band’ around them. By default, this band is an ATR measurement but can be switched to a standard deviation or constant value.
Adjustments to the indicator can be made by clicking on the three dots next to its title in the indicator list. These adjustments are similar to those found in the Williams Fractal indicator. One can adjust the length value of the Williams Fractal, which will determine the points plotted. The band type, length, and value can also be adjusted.
Double Smoothed Stochastic (Blau and Bressert)
First created by William Blau, the Double Smoothed Stochastic indicator applies exponential moving averages of two different periods to a standard Stochastic %K. The components are first smoothed with the two EMAs and then a standard Stochastic formula is used with the smoothed values to calculate the indicator. Later, Walter Bressert altered the original formula slightly to further smooth the Stochastics. These indicators can be used similarly to how a standard Stochastic indicator is used; To hunt divergences as well as get a sense for overbought and oversold conditions.
Adjustments to the indicator can be made by clicking on the three dots next to its title in the indicator list. The editable values are the same for both Blau and Bressert versions, but the preset values vary.
Do note that the Fractal Trendlines indicator is experimental and we do not yet fully understand its use cases. We hope you find this new update helpful, and as always, feel free to reach out to us via the ‘Contact Us’ button if you have any questions!