• Información general
  • Comentarios
  • Discusión
  • Novedades

Smoking Area

Smoking Area is a new trend indicator based on the filtered price curve and its deviations. It shows the direction of trend and its power. Two gray smokes are shown with a little contrast. The lighter smoke is upper than the price curve and the darker one is bellow it. Shape and ratio of these grayish areas are indicating the condition of trend at each moment. There is a narrow red color smoke which appears with formation of a sharp trend. Red color smoke which has been created in boundary of a up or down trend, confirms the existence of a powerful change. After red smoke, we should expect direction change.

The lighter smoke means the power of downtrend and the darker smoke means the power of uptrend. Each smoke creates a channel which shows its trend direction. When both smokes exist, price chart is on a stable cycle mode. So the trading areas are where one of smokes disappear and a divergence appears; divergence between price chart and smoke boundary. This trend is acceptable and continues until the another smoke appears again.

You can find a series of special shapes of smokes that each one has a unique meaning. For example an egg shape means the end of a powerful trend. Eggs are consist of two part: Big and small. When an egg shape is forming, current trend with big area will be finished and new opposite trend will start after it. Every change in surface area of each smoking area indicates a change in trend power. Bigger space means more power. So reducing the area indicates that we are close to end of this trend. 

There is not any input parameters for this indicator. It works in any timeframes from M1 to Daily chart.

No hay comentarios
Versión 1.5 2019.05.10
Adjusting period factor for different timeframes
Versión 1.4 2019.05.09
Move smokes to background of chart
Minor modifications
Versión 1.2 2019.05.04
Minor modifications
Versión 1.1 2019.05.03
Smokes color modification