Logistic EMA w/ Signals by DGTLogistic Map Equation - The logistic map connects fluid convection, neuron firing, the Mandelbrot set and so much more.
This study is an attempt to apply Logistic Map Equation in Trading
Logistic Map Equation
Xn+1 = r * Xn * (1 - Xn)
Where,
r - growth rate
Xn - percentage of theoretical maximum of measured event (from 0 to 1)
(1 - Xn) - represents constraints of the environment, presents the idea of negative feedback
For trading the measured event will be the price of the instrument (price is commonly reffered as source in mathematicall forumlations),
hence
r - growth rate can be expressed as => change(source, length) / source, expressing r in such manner mades the equation dynamic with regards to the growth rate
Xn - percentage of theoretical maximum of the price for given duration can be expressed as => source / highest(length)
Putting pieces together we are ready to plot
Printed alone does not seem to provide much useful visualization for trading, in fact not easy to interpret especially when the market is an uptrend
What it has numerically,
Provides a ratio, where sudden changes are much more reflected thanks to negative feedback nature of the logistic equation.
As we know moving average indicators are lagging and the logistic map may fit here to reduce the lag
With this study you will find application of Logistic Map Equation with combination of Exponential Moving Average (EMA)
Logistic EMA (LEMA) and LEMA COLORS
one line with user defined periods of length, where the colors of the line will change automatically depending where the value is compared to 50-100-200 moving average
Multiple LEMAs : optional – three fixed lenght of 50-100-200 period lines
LEMA Signals
Various signals are added by using LEMA and applying some common market approaches. Use with caution and with conjunction of other indicators
Thanks to @allanster for the idea
A fascinating YouTube video explaining the logistic map - “This equation will change how you see the world (the logistic map)”
Disclaimer:
Trading success is all about following your trading strategy and the indicators should fit within your trading strategy, and not to be traded upon solely
The script is for informational and educational purposes only. Use of the script does not constitute professional and/or financial advice. You alone have the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd TradingView user liable for any possible claim for damages arising from any decision you make based on use of the script
Elderraybullandbearpoweroscillators
Elder Ray Bull and Bear Power OscillatorsElder Ray Bull and Bear Power Oscillators
Tradingview Screener Bull Bear Power(BBPOWER)
OVERVIEW
The Bull and Bear Power oscillators developed by Dr Alexander Elder attempt to measure the power of buyers (bulls) and sellers (bears) to push prices above and below the consensus of value. The primary principles on which Elder based the oscillator are:
The highest price displays the maximum buyer’s power within the day.
The lowest price displays the maximum seller’s power within the day.
The moving average can be construed as a price agreement between buyers and sellers for a given time period.
The Bulls/Bears power balance is important since changes in this balance can signal the early stages of a potential trend reversal.
CALCULATION
Elder uses a 13-day exponential moving average (EMA) to indicate the consensus market value.
Bull Power is calculated by subtracting the 13-day EMA from the day’s high.
Bear Power is derived by subtracting the 13-day EMA from the day’s low.
TRADING WITH THE ELDER RAY BULL AND BEAR POWER OSCILLATORS
BULL POWER
Where a currency uptrend is sustained to the point that maximum prices move above the EMA the Bull Power histogram will be greater than zero. As price maximums accelerate to greater levels (above the EMA) during the rising trend histogram bars will increase in height above the zero line showing the increased buying strength during the period.
BEAR POWER
Where a currency downtrend is sustained to the point that minimum prices move below the EMA the Bear Power histogram will be less than zero. As price minimums accelerate to lower levels (below the EMA) during the falling trend histogram bars will increase in height below the zero line showing increased selling strength during the period.
TRADING SIGNALS
It is important for traders to use the Elder Ray oscillators in conjunction with the EMA overlay over the price chart (typically as per period being analysed) to give additional context to the signals. Sell signals are given if Bull Power is above zero and there is a bearish divergence in the Bull Power histogram or if the Bull Power histogram is above zero and falling.
Buy signals are given if Bear Power is below zero and there is a bullish divergence in the Bear Power histogram or if the Bear Power histogram is below zero and rising. It is extremely important for traders to only trade in the above scenarios if the direction of the trend indicated by the slope of the EMA on the price chart is in the direction of their trade when the signal is given (or shortly after).
