Trend Quality Indicators for Amibroker (AFL)

dalmas

about 14 years ago

Amibroker (AFL)

Originally described in Stocks & Commodities April 2004, by David Sepiashvili.
The trend-quality indicator (or Q-indicator) is a trend detection and estimation tool that is based on a two-step filtering technique. It measures cumulative price changes over term-oriented semicycles and relates them to ‘noise.’ The approach reveals congestion and trending periods of the price movement and focuses on the most important trends, evaluating their strength in the process. The indicator is presented in a centered oscillator and banded oscillator format.

Both Q-Indicator (the Trend Quality one) and the B-Indicator (trend-noise Balance Indicator) can be displayed (alternatively).

Different crossover signals can be easily added by just adding the required string in ParamList (the string SHALL follows the convention ?MA m1,m2 where ?MA is the MA type (EMA, SMA or WMA) and m1,m2 are the period ALWAYS in 2 digits (i.e. 5 shall be written as 05)

Q-indicator has 3 levels: 2(+/-) and 5(+/-): 0 to 2 means weak or NO trend; 2 to 5 means moderate trend, >= 5 means strong trend (Up trend if positive, Down trend if negative).

B-Indicator fluctuates between 0 to 100. It is better suited to identifies overbought/oversold levels. It has 2 levels: 65 and 80. 0 to 65 means NO or weak trend, 65 to 80 means moderate trend and >= 80 means strong trend.

I like this indicator since it is quite “agnostic” about the chosen parameters (Obviously the crossover MAs do matter !!).

Screenshots

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