Ocean theory based indicators - page 13
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Updated Natural market slope with standard deviations and historical extremes : ocn_nms_amp_sd_hist_nmc.mq4
Originally (with detailed description) it was posted here : https://www.mql5.com/en/forum/179737/page3
Natural market slope & SD hist
Natural market slope with standard deviations and historical extremes
Parameters :Updated Natural market slope with natural moving averages : ocn_nms_amp_ocn_mas_nmc.mq4
Originally (with all the details) it was posted here : https://www.mql5.com/en/forum/179737/page3
Natural market slope & ocn mas
Natural market slope with natural moving averages
Parameters :Updated natural market slope with natural market averages - smoothed version : ocn_nms_amp_ocn_mas_smooth_nmc.mq4
Original with detailed description was posted here : https://www.mql5.com/en/forum/179737/page3
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One more slight deviation here :
The basis for natural market slope calculation is quite interesting : it is calculating a series of NMS.Period linear regression slopes, and, according to their weights, makes something that is a "prevailing" slope.
This way of calculating - finding out - a trend seems to be an effective one. An idea very similar to this (not calculating linear regression, but taking into account successive values of some indicator and than finding out the trend from their values) is a core of Mark Jurik's composite fractal behavior (CFB), for example. I did not take a deeper look at who actually came up with this kind of idea first, but since the underlying math is completely different, in this case it really does not matter either.
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Hence I decided to experiment a bit with this one (because the calculating way and because it is giving results that are useful) : this is a variation of the "with ocean averages" version in a sense that I was curious what effect would a "post smoothing" have on a result of this indicator. So I used a two pole smoother on a result (natural moving averages) in order to test if it would change results in a "dramatic" (visible at first glance) way. And it seems, that unlike the smoothed versions of natural moving averages on a price when results are "really visible", when the same smoothing is applied to a natural moving average of an oscillator results are not differing from the original in a significant way (neither as the "smoothness" is concerned, nor as the signals timings are concerned)
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Anyway, here is the "smoothed" version and it's comparison to the "non-smoothed" version. I compared the both with TEMA pre-smoothing turned off (TEMA smoothing period 1) in order to have "worst case data" for averages.
Updated version posted here : https://www.mql5.com/en/forum/179737
Updated ocean Natural market river : ocn_nmr_nmc.mq4
Original was posted here : https://www.mql5.com/en/forum/179737/page3
Natural market river
Natural market river
Natural market river
UsageUpdated ocean nma fast with standard deviations bands : ocn_nma_fast_amp_sd_nmc.mq4
Original was posted here : https://www.mql5.com/en/forum/179737/page2
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PS: as a curiosity - almost all ocean indicators are looking better when the price is filtered prior to calculation, The second example is with a 10 tema applied prior to calculation
Fast natural moving average & bands
Fast natural moving average & standard deviations bands
Fast natural moving average, as well as a set of standard deviation volatility bands, or envelopes, that surround the Fast natural moving average. The Fast natural moving average often functions as a short-term support or resistance level, and the bands can be used to anticipate the boundaries, or extremes, of price action. When used in conjunction with other Ocean tools, this tool can often help pinpoint areas where the market is likely to reverse its direction.
Usage
The Fast natural moving average is designed to track price action very closely, and can be used as a short-term trend following tool. When prices are above a rising Fast natural moving average, the market is in a generally bullish short- term phase, while price action taking place below a falling Fast natural moving average indicates a bearish short-term period. Also, many times during a rapid advance or decline, the Fast natural moving average "catches up" to price action very quickly, and sharp counter-trend moves should be expected to find support or resistance at Fast natural moving average.
Since the Ocean logic allows the moving average to rapidly adapt to changes in volatility, you may also find that the Fast natural moving average can be used to help you set logical stops for the markets that you trade. The Displace input allows you create an offset plot of the Fast natural moving average so that the Fast natural moving average value for the next bar is available as of the close of the current bar. This lets you know in advance the price level required to violate the Fast natural moving average, and potentially reverse the current short-term trend.
The trading channel created with the addition of the standard deviation bands around the Fast natural moving average also provides you with a way of defining short-term overbought and oversold levels. When the market is locked in a trading range, the SD envelope can be very helpful in identifying likely reversal points as prices quickly violate one of the bands and then reverse. However, care needs to exercised as a std. dev. band is violated. These points can often mark the beginning of powerful trending phases of market activity. Therefore, the other Ocean tools should be consulted to help determine whether the violation of a band is a likely reversal point, or its polar opposite - a possible acceleration point.