Pure Diamond Trend Exhaustion
- Indicators
- Version: 2.5
- Activations: 5
Pure Diamond Trend Exhaustion
The Pure Diamond Trend Exhaustion indicator is designed to identify market exhaustion zones and potential price reversal points. The core algorithm is based on the analysis of extremes and candlestick wick structures, allowing it to highlight significant overbought and oversold levels without the use of standard lagging oscillators.
Technical Characteristics:
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No Repaint: Indicator signals (diamonds) are fixed immediately after the current candle closes. A formed signal does not disappear or change its position with further price movement.
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Noise Filtering Algorithm: The program analyzes the ratio of candle bodies and wicks, filtering out false fluctuations within established price ranges.
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Versatility: The indicator is adapted for all asset types, including currency pairs (Forex), cryptocurrencies, indices, and commodities. It is suitable for use on any timeframe.
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Minimalist Interface: Visualization is implemented as graphical symbols, which avoids cluttering the trader's workspace and allows for easy integration with other technical analysis methods.
Usage Methodology: The indicator generates two types of signals:
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Pink Diamond: Formed at local highs, indicating exhaustion of the upward movement.
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Blue Diamond: Formed at local lows, indicating exhaustion of the downward movement.
Default Settings: The indicator comes with pre-configured parameters optimized for M15 and M30 timeframes. These settings provide a balance between signal accuracy and frequency. For higher (H1+) or lower (M1) timeframes, adjustment of the Sensitivity parameter is recommended.
Input Parameters:
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Sensitivity: Adjusts the algorithm's reaction to price extremes. Higher values select more significant extremes.
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Arrow Shift: The display distance of the symbol relative to the high or low of the candle (in points).
