Skip to main content

Smoothed WPR VertexFX Indicator

The Smoothed WPR indicator is a powerful VertexFx client side indicator script that provides insights into the market trend and reversal of trends.
It is based on the Williams %R indicator. The Williams %R displays the relationship of the current closing price with respect to recent N highs and lows. Unlike normal oscillators, Williams %R is a negative oscillator, in the sense that -100 represents oversold conditions and 0 represents overbought conditions. The Williams %R although very useful in identifying trend reversals produces whipsaws when there is a large deviation in the latest closing price. To avoid whipsaws and provide more reliable technique for identifying reversals the Williams %R is smoothed using a smoothing co-efficient. 
By default the smoothing co-efficient calculated as 2 / (1 + SMOOTHING PERIOD). By default the smoothing period is same as the Williams %R period. However, the user can override the default smoothing period by set the value of SMOOTH_PERIOD to the desired period.
When the value of Smoothed WPR is falling it indicates a bearish trend. When the value falls below -80 and starts reversing (or moves sideways), then oversold trend is nearing completion and the market should turn from bearish to neutral or bullish.
Similarly, when the value of Smoother WPR is rising it indicaters a bullish trend. When the value rises above -20 and starts reversing or exhibits sideways movement, then it can be inferred that the bullish market is nearing completion. It is very likely that the market will turn sideways or bearish soon after this event.

BUY / EXIT SHORT - It is recommended to enter a LONG position (or exit SHORT) when the Smoothed WPR is below -80 and starts moving sideways or upwards.

SHORT / EXIT LONG - It is recommended to enter SHORT position (or exit LONG) when the Smoother WPR is above -20 and starts moving sideways or downwards.

Comments

Popular posts from this blog

WPR+CCI Vertexfx Indicator

The WPR+CCI is a powerful VertexFX client-side indicator based on the Williams Percent Rank (WPR) and the Commodity Channel Index (CCI). The Williams Percent Rank indicator provides insights into the current price with respect to its historical highs and lows over the specified period. Lower values of WPR suggest bearish trend and higher values of WPR indicator bullish trend. The WPR is bounded between -100 and 0. The Commodity Channel Index (CCI) measures the price variations from its statistical mean. Traders use CCI to help identify price reversals, price extremes and trend strength. The CCI typically oscillates above and below a zero line. Normal oscillations will occur within the range of +100 and -100. Readings above +100 imply an overbought condition, while readings below -100 imply an oversold condition. The WPR+CCI indicator uses the WPR as the primary indicator and the CCI as the filter indicator. When the WPR is rising and the CCI is above +80 the WPR+CCI indicator turns BL...

ICWRA VertexFX Indicator

ICRWa ICWRa indicator is a VertexFx indicator that provides precise BUY and SELL signals by identifying market cycles using trends. When the price moves in well-defined cycles, the trending indicators like Commodity Channel Index (CCI) and Average True Range (ATR) are useful in identifying trading spots where entry and exit signals can be taken. During sideways markets and whipsaws, these indicators can be tuned to avoid trades, or to exit losing trades quickly. The ICWRa indicator employs this strategy. In the first step, we calculate the Commodity Channel Index (CCI) over the recent 50 bars. In the second step, we calculate the Average True Range (ATR) values over the recent 5 bars. In the third step, we calculate the standard deviation of the CCI and ATR over the recent 50 bars to identify the trading triggers. When all the three components are rising, a BUY signal is generated by the indicator. Similarly, when all the three components are falling, a SELL signal is generate...

RSIofPSAR VertexFX Indicator

RSIofPSAR is a VertexFX indicator that identifies trend reversals, it is based on two underlying indicators namely the Parabolic Stop-And-Reverse (PSAR) and the Relative Strength Index (RSI). The PSAR indicator is very useful in trend-following techniques when the trend is clear. However, it leads to whipsaws in sideways markets leading to losses. The RSI indicator is useful in identifying trend reversals and sideways markets. RSIofPSAR is created by combining these characteristics from the two indicators providing use with a composite indicator the identifies trend reversals. In the first step, we calculate the Parabolic Stop-And-Reverse (PSAR) of the price series. In the next step, we calculate the Relative Strength Index (RSI) of the PSAR calculated in the previous step. Instead of calculating the RSI using the standard technique, we use a smoothing co-efficient to eliminate the lag. The RSIofPSAR is a bounded oscillator ranging between 0 and 100. It turns BLUE when it is rising an...