Function StochRSI Stochastic Relative Strength Index developed by Tushar Chande and Stanley Kroll.
This script has been written to eliminate the period variable.(Integer)
Thus, it can be used comfortably in adaptive period scripts ! (For example : Adaptive Moving Average , KAMA , FAMA .. etc. )
All efforts goes to ChaosTrader () ,
RicardoSantos () ,
Hpotter for barcolor codes (iff) ()
I hope it will help your new ideas . Best regards ! Noldo .
在腳本中搜尋"Relative"
RSX Divergence — SharkCIARSX is a "noise free" version of RSI, with no added lag.
This version takes everget's implementation of RSX and adds divergences.
Credit for the divergences goes to Libertus:
Check out everget's scripts here: www.tradingview.com
Relative Strength OscillatorTracks an EMA and SMA of the 14 day RSI. Also avoids the market with 14 day RSI is above 90.
Buy when green, sell when red.
RSI Alligator Strategy [forked from jedireza]Backtester for RSI alligator is Williams Alligator strategy using Relative Strength Index to predict entries
Original script can be found at
Relative Strength Index - Divergences - LibertusHello all,
To ease everyone's trading experience I made this script which colors RSI overbought and oversold conditions and as a bonus displays bullish or bearish divergences in last 50 candles (by default, you can change it).
Script is open source, part of code is from Trading View examples. If you have suggestions or you already made some improvements, please report in comment.
Happy trading and good luck!
CSI - Currency strength indicator RSI 10This Indicator shows you the strength of the Currency in comparison for all other Main Currencys at the timeframe you choose.
The Currencys in this Indicator is: EUR, USD, GBP, CHF, AUD, CAD, JPY
The Base is the RSI (relative strength Indicator) with the following Currency pairs:
eurusd, eurgbp, euraud, eurjpy, eurcad, eurchf
usdeur, usdgbp, usdaud, usdjpy, usdcad, usdchf
gbpeur, gbpusd, gbpaud, gbpjpy, gbpcad, gbpchf
audeur, audusd, audgbp, audjpy, audcad, audchf
jpyeur, jpyusd, jpyaud, jpygbp, jpycad, jpychf
cadeur, cadusd, cadaud, cadgbp, cadjpy, cadchf
chfeur, chfusd, chfaud, chfgbp, chfjpy, chfcad
The letters in the LineChart:
EUR = E
USD = U
GBP = G
CHF = C
AUD = A
CAD = C
JPY = J
The CSI can help to see, if your trading pair have the potential to breakout on the support and resistance or if it more likely go back.
Some people say that the banks use this indicator.
NZD is missing there because Tradingview only support 6 variables.
If you have a solution for than, please let me know.
Thanks
RSMACDDefault MACD formula filtered by an RSCD, a Relative Strength Index midpoint transpose over a 21 length moving average.
Checking both filters the MACD with the RSCD.
Checking only the MACD plots only the MACD.
Checking only the RSCD plots only the RSCD.
Gain/Loss Moving Average [Cyrus c|:D]This is a simple momentum indicator. It calculates the moving average of gains and losses. As you can see in the chart above, gains have been decreasing in each wave which is also captured by this indicator. Its closest relative is RSI but unlike RSI it is not range bound. Divergence on indicators that are not range bound are generally more reliable.
Recommended settings:
- EMA as moving average type.
- EMA length 27 is equal to RSI length 14 (2 x RSI length - 1). You can sync the length on the two indicators using that equation.
- hlc3 (AKA typical price) as input source might be better than "close" as it captures more information. If you use hlc3 as a source, then change the chart type to line and set hlc3 as the source for identifying divergence.
PS: Let me know if you know any identical indicator. I may be re-inventing the wheel :)
Volume Factored Relative Strength Index (VFRSI)RSI is an indicator that is dependent only on price. I modified RSI to factor in volume as well. On BTC chart presented above, VFRSI is more accurate than RSI in detecting extreme conditions (green line is VFRSI). In some instances, it seems to be better than RSI in detecting divergences as well (scroll to March 2018).
In smaller time frames, it reduces the bart effect present on RSI without compromising responsiveness (unlike moving averages).
Features:
- Parameterized variables
- Includes regular RSI
- Includes an adjustable weight factor to reduce the effect of volume. At 0, it is identical to RSI.
PS: If you have seen a similar indicator, please let me know. Otherwise, this indicator has the potential to replace regular RSI.
Your feedback is very welcome :)
c|:D
Relative Strength Index with 4 ColorsThe values used by this indicator are equal to RSI 14. Only changes are made to looks:
If RSI is above 50%, then we are seeing green. Else, we are seeing red.
Another point is that depending on whether the RSI increases or decreases, we get two different color tones.
Plaid Stochastic / RSI Triple Combo Indicator [sclark39]Welcome to my "Plaid" Stochastic / RSI / StochRSI Combo indicator.
This shows the Fast and Slow Stochastic (orange and yellow), Relative Strength Index (white), and the Stochastic RSI (purple). As the lines cross the 80/20 and 70/30 lines, the background color changes to make it easy to see at a glance how many of the indicators have crossed their threshold. In the options you can change the period lengths and hide/show each of type of indicator to best fit your trading style.
Use this indicator for trades at your own risk, I made this for fun and it is not a trade recommendation.
That being said, if you like my work please tip me!
ETH: 0xf8E0Ea503B5c833fD4546E7fa2c70EcE42A27C8A
Please comment with feedback and requests!
RSI / Stoch / Stoch RSI (SRSI) Overlay [SigmaDraconis]Combines RSI, Stochastic and Stochastic RSI (SRSI) in only one indicator.
Most useful to better pick tops and bottoms on oversold and overbought levels.
I decided to write it since I felt the need to look at how all 3 behaved at once, relative to each.
If you like it, here are my tip jars:
BTC: 1CfBVcxmrx7Uxw3SYJWVGKZsEK698fwXP9
LTC: LXXt76wWTksLcM5qbbiAxfP1o8SoxwzDH2
BTS: sigma-draconis
Log-space Relative Strength IndexA version of RSI more usable for highly volatile charts and long-term trends
Simple Relative Strength IndexThis is a modified version of the base RSI indicator, which uses the Wilder's calculation with exponential MAs. This version uses simple MAs. Simple RSI is one of the indicators required for the Green Goose trading strategy, which you can learn about from OptionsPlayers.com .
QQE Cross Indicator Alert v2.0 by JustUncleLThis version of the indicator makes a distinction between the types of QQE cross alerts on the chart and now only recommends the Thresh Hold channel exit crosses for BUY/SELL alerts, the other two types of crosses are still there to provide pre-warning of pending BUY/SELL alerts. Also only the BUY/SELL alerts are filtered by Moving Average Filter and/or the new Directional filter (default). The default settings in this version have also been changed, particularly the Moving Averages, to indicate trend changes quicker.
Indicator Project Description:
*** This is a trend following indicator alert that uses fast QQE crosses with Moving Averages for trend direction filtering. QQE or Qualitative Quantitative Estimation is based on the relative strength index, but uses a smoothing technique as an additional transformation. Three crosses can be selected (all selected by default):
RSI signal crossing ZERO (XZERO)
RSI signal crossing Fast RSIatr line (XQQE)
RSI signal exiting the RSI Threshhold Channel (BUY/SELL)
The (BUY/SELL) alerts can be optionally filtered by the Moving Average Combo:
For BUY alert the Close must be above the fast MA and
fast MA (EMA8) > medium MA (EMA20) > slow MA (SMA50).
For SELL alert the Close must be below the fast MA and
fast MA (EMA8) < medium MA (EMA20) < slow MA (SMA50).
and/or Directional filter (default filter):
For BUY alert the Close must be above the slow MA (SMA50) and the directional MA (EMA20) must be green.
For SELL alert the Close must be below the slow MA (SMA50) and the directional MA (EMA20) must be red.
The XZERO and XQQE are not included in the filtering, they are used to indicate pending BUY/SELL alerts, particularly the XZERO.
Note: I have found the XQQE cross can also be quite good alert for BUY/SELL as well, particularly in direction of current trend. The XZERO I have found to be totally unreliable for BUY/SELL alerts.
This indicator should work on any currency pair, most chart timeframes and expiry in 3 to 6 candles for binary option trading. For hourly or longer charts expiry can be longer for binary options, or if available use standard forex trading techniques
Some Hints for using this indicator:
Avoid taking trades in non-trending market, this is normally indicated by a near Horizontal SMA50 line.
Avoid trading when all the moving averages are close together.
When trading 1min and 5min charts, expiry should set to 1-3 candles.
Avoid trading when market choppy, this is normally indicated by the fast EMA8 crossing the EMA20 back and forwards quickly.
High probability trades tend to occur when you get a XQQE followed by a XZERO and then BUY/SELL in the same direction of trend.
Don't trade near nor directly on any major market news (sometime better no trade day).
Please practise this system in DEMO first, before committing any real money. Be patient the more you practise the better and more confident you will be.
I hope you enjoy this indicator, it has proven very effective for me.
Relative Strength Index x2Two RSI better then one. Also histogram shows difference of fast and slow RSI.
Relative Risk MetricOVERVIEW
The Relative Risk Metric is designed to provide a relative measure of an asset's price, within a specified range, over a log scale.
PURPOSE
Relative Position Assessment: Visualizes where the current price stands within a user-defined range, adjusted for log scale.
Logarithmic Transformation: Utilizes the natural log to account for a log scale of prices, offering a more accurate representation of relative positions.
Calculation: The indicator calculates a normalized value via the function Relative Price = / log(UpperBound) − log(LowerBound) . The result is a value between 0 and 1, where 0 corresponds to the lower bound and 1 corresponds to the upper bound on a log scale.
VISUALIZATION
The indicator plots three series:
Risk Metric - a plot of the risk metric value that’s computed from an asset's relative price so that it lies within a logarithmic range between 0.0 & 1.0.
Smoothed Risk Metric - a plot of the risk metric that’s been smoothed.
Entry/Exit - a scatter plot for identified entry and exit. Values are expressed as percent and are coded as red being exit and green being entity. E.g., a red dot at 0.02 implies exit 2% of the held asset. A green dot at 0.01 implies use 1% of a designated capital reserve.
USAGE
Risk Metric
The risk metric transformation function has several parameters. These control aspects such as decay, sensitivity, bounds and time offset.
Decay - Acts as an exponent multiplier and controls how quickly dynamic bounds change as a function of the bar_index.
Time Offset - provides a centering effect of the exponential transformation relative to the current bar_index.
Sensitivity - controls how sensitive to time the dynamic bound adjustments should be.
Baseline control - Serves as an additive offset for dynamic bounds computation which ensures that bounds never become too small or negative.
UpperBound - provides headroom to accomodate growth an assets price from the baseline. For example, an upperbound of 3.5 accommodates a 3.5x growth from the baseline value (e.g., $100 -> $350).
LowerBound - provides log scale compression such that the overall metric provides meaningful insights for prices well below the average whilst avoiding extreme scaling. A lowerbound of 0.25 corresponds to a price that is approx one quarter of a normalised baseline in a log context.
Weighted Entry/Exit
This feature provides a weighted system for identifying DCA entry and exit. This weighting mechanism adjusts the metric's interpretation to highlight conditions based on dynamic thresholds and user-defined parameters to identify high-probability zones for entry/exit actions and provide risk-adjusted insights.
Weighting Parameters
The weighting function supports fine-tuning of the computed weighted entry/exit values
Base: determines the foundational multiplier for weighting the entry/exit value. A higher base amplifies the weighting effect, making the weighted values more pronounced. It acts as a scaling factor to control the overall magnitude of the weighting.
Exponent: adjusts the curve of the weighting function. Higher exponent values increase sensitivity, emphasizing differences between risk metric values near the entry or exit thresholds. This creates a steeper gradient for the computed entry/exit value making it more responsive to subtle shifts in risk levels.
Cut Off: specifies the maximum percentage (expressed as a fraction of 1.0) that the weighted entry/exit value can reach. This cap ensures the metric remains within a meaningful range and avoids skewing
Exit condition: Defines a threshold for exit. When the risk metric is below the exit threshold (but above the entry threshold) then entry/exit is neutral.
Entry condition: Defines a threshold for entry. When the risk metric is above the entry threshold (but below the exit threshold) then entry/exit is neutral.
Weighting Behaviour
For entry conditions - value is more heavily weighted as the metric approaches the entry threshold, emphasizing lower risk levels.
For exit conditions - value is more heavily weighted as the metric nears the exit threshold, emphasizing increased risk levels.
USE-CASES
Identifying potential overbought or oversold conditions within the specified logarithmic range.
Assisting in assessing how the current price compares to historical price levels on a logarithmic scale.
Guiding decision-making processes by providing insights into the relative positioning of prices within a log context
CONSIDERATIONS
Validation: It's recommended that backtesting over historical data be done before acting on any identified entry/exit values.
User Discretion: This indicator focus on price risk. Consider other risk factors and general market conditions as well.
Relative Average Extrapolation [ChartPrime]Relative Average Extrapolation (ChartPrime) is a new take on session averages, like the famous vwap . This indicator leverages patterns in the market by leveraging average-at-time to get a footprint of the average market conditions for the current time. This allows for a great estimate of market conditions throughout the day allowing for predictive forecasting. If we know what the market conditions are at a given time of day we can use this information to make assumptions about future market conditions. This is what allows us to estimate an entire session with fair accuracy. This indicator works on any intra-day time frame and will not work on time frames less than a minute, or time frames that are a day or greater in length. A unique aspect of this indicator is that it allows for analysis of pre and post market sessions independently from regular hours. This results in a cleaner and more usable vwap for each individual session. One drawback of this is that the indicator utilizes an average for the length of a session. Because of this, some after hour sessions will only have a partial estimation. The average and deviation bands will work past the point where it has been extrapolated to in this instance however. On low time frames due to the limited number of data points, the indicator can appear noisy.
Generally crypto doesn't have a consistent footprint making this indicator less suitable in crypto markets. Because of this we have implemented other weighting schemes to allow for more flexibility in the number of use cases for this indicator. Besides volume weighting we have also included time, volatility, and linear (none) weighting. Using any one of these weighting schemes will transform the vwap into a wma, volatility adjusted ma, or a simple moving average. All of the style are still session period and will become longer as the session progresses.
Relative Average Extrapolation (ChartPrime) works by storing data for each time step throughout the day by utilizing a custom indexing system. It takes the a key , ie hour/minute, and transforms it into an array index to stor the current data point in its unique array. From there we can take the current time of day and advance it by one step to retrieve the data point for the next bar index. This allows us to utilize the footprint the extrapolate into the future. We use the relative rate of change for the average, the relative deviation, and relative price position to extrapolate from the current point to the end of the session. This process is fast and effective and possibly easier to use than the built in map feature.
If you have used vwap before you should be familiar with the general settings for this indicator. We have made a point to make it as intuitive for anyone who is already used to using the standard vwap. You can pick the source for the average and adjust/enable the deviation bands multipliers in the settings group. The average period is what determines the number of days to use for the average-at-time. When it is set to 0 it will use all available data. Under "Extrapolation" you will find the settings for the estimation. "Direction Sensitivity" adjusts how sensitive the indicator is to the direction of the vwap. A higher number will allow it to change directions faster, where a lower number will make it more stable throughout the session. Under the "Style" section you will find all of the color and style adjustments to customize the appearance of this indicator.
Relative Average Extrapolation (ChartPrime) is an advanced and customizable session average indicator with the ability to estimate the direction and volatility of intra-day sessions. We hope you will find this script fascinating and useful in your trading and decision making. With its unique take on session weighting and forecasting, we believe it will be a secret weapon for traders for years to come.
Enjoy
Relative Strength Scoring SystemRelative Strength Scoring System :
Important prerequisite :
This indicator can be loaded on any forex chart, i.e. a currency pair, but must not be loaded on any other asset due to certain market closures.
The chart timeframe must be less than or equal to the trading timeframe, which is the indicator's first parameter. A timeframe equal to that of the "Trading Timeframe" parameter is preferable.
Introduction :
This indicator measures the relative strength of a currency against all other currencies using spread formulas. It gives an indication of which currencies are bullish, neutral or bearish. The ultimate aim of this indicator is to find out which pair will generate a higher probability of gain than the others by pairing the most bullish pair with the most bearish pair.
Spread formulas :
To find the relative strength of a currency compared with others, we use the following spreads formulas :
USD = (FX:USDJPY/100+SAXO:USDEUR+FX:USDCHF+SAXO:USDGBP+FX:USDCAD+SAXO:USDAUD+FX_IDC:USDNZD)/7
JPY = (SAXO:JPYUSD/100+FX_IDC:JPYAUD/100+FX_IDC:JPYCAD/100+FX_IDC:JPYNZD/100+FX_IDC:JPYCHF/100+SAXO:JPYEUR/100+FX_IDC:JPYGBP/100)/7
CHF = (FX:CHFJPY/100+SAXO:CHFUSD+SAXO:CHFEUR+FX_IDC:CHFGBP+FX_IDC:CHFCAD+SAXO:CHFAUD+FX_IDC:CHFNZD)/7
EUR = (FX:EURJPY/100+FX:EURUSD+FX:EURCHF+FX:EURGBP+FX:EURCAD+FX:EURAUD+FX:EURNZD)/7
GBP = (FX:GBPJPY/100+FX:GBPUSD+FX:GBPCHF+SAXO:GBPEUR+FX:GBPCAD+FX:GBPAUD+FX:GBPNZD)/7
CAD = (FX:CADJPY/100+SAXO:CADUSD+FX:CADCHF+FX_IDC:CADGBP+SAXO:CADEUR+FX_IDC:CADAUD+FX_IDC:CADNZD)/7
AUD = (FX:AUDJPY/100+FX:AUDUSD+FX:AUDCHF+SAXO:AUDGBP+FX:AUDCAD+SAXO:AUDEUR+FX:AUDNZD)/7
NZD = (FX:NZDJPY/100+FX:NZDUSD+FX:NZDCHF+SAXO:NZDGBP+FX:NZDCAD+SAXO:NZDAUD+SAXO:NZDEUR)/7
CRYPTO = (BITSTAMP:BTCUSD+BITSTAMP:ETHUSD+BITSTAMP:LTCUSD+BITSTAMP:BCHUSD)/4
Timeframes :
As mentioned in the prerequisites, the chart timeframe must not be greater than the trading timeframe. The latter corresponds to the timeframe chosen by the trader to enter a position, and is the indicator's first parameter. Once this has been chosen, the algorithm selects the timeframes of the "Trend" and "Velocity" charts. Here's how it allocates them :
Trading TF => ("Velocity TF", "Trend TF")
"5min" => ("15min ", "60min")
"15min" => ("60min ", "4h")
"30min" => ("2h ", "8h")
"60min" => ("4h ", "12h")
"4h" => ("12h", "1D")
"6h" => ("1D", "3D")
"8h" => ("1D", "4D")
"12h" => ("2D", "1W")
"1D" => ("3D", "1W")
Trend Scoring System :
When the timeframe of the trend graph has been allocated, the algorithm will establish this graph's score using three criteria :
Trend chart pivot points: if the last two pivots, high and low, are increasing, the score is 1; if they are decreasing, the score is -1; else the score is 0.
SMA: if its slope is increasing with a candle strictly above the SMA value, the score is 1; if its slope is decreasing with a candle strictly below it, the score is -1; otherwise, it is 0.
MACD: if the MACD is positive, the score is 1, if it is negative, the score is -1; else it's 0.
We then sum the scores of these three criteria to find the trend score.
Velocity Scoring System :
In the same way, we analyze the score of the "velocity" graph with its corresponding timeframe using three criteria :
The EMA: if its slope is increasing with a candle strictly above the EMA value, the score is 1; if its slope is decreasing with a candle strictly below it, the score is -1; otherwise, it is 0.
The RSI: if the RSI's EMA has an increasing slope with an RSI strictly greater than the value of this EMA, the score is 1; and if the RSI's EMA has a decreasing slope with an RSI strictly less than this EMA, the score is -1; otherwise it is 0.
SAR parabolic: if the SAR is below the price, the score is 1; if it is above the price, the score is -1.
We then sum the scores of these three criteria to find the velocity score.
Relative Strength Scoring System :
Once the trend score and velocity score have been calculated, we determine the relative strength score of each currency using the following algorithm :
If trend score >=2 and velocity score >=2, the currency is bullish.
If trend score <=2 and velocity score <=2, currency is bearish
If (trendScore>=2 or velocityScore>=2) and (trendScore=1 or velocityScore=1) the currency is not yet bullish
If (trendScore<=2 or velocityScore<=2) and (trendScore=-1 or velocityScore=-1) the currency is not yet bearish.
Otherwise the currency is neutral
Parameters :
Trading Timeframe: the trading timeframe chosen by the trader for which he makes his position entry and exit decisions. Default is 1h
Pivot Legs: Parameter used for the chart "Trend" setting the pivot strength to the right and left of high/low. Default is 2
SMA Length: SMA length of the chart "Trend". Default is 20
MACD Fast Length: Length of the MACD fast SMA calculated on the chart "Trend". Default is 12
MACD Slow Length: Length of the MACD slow SMA calculated on the chart "Trend". Default is 26
MACD Signal Length: Length of the MACD signal SMA calculated on the chart "Trend". Default is 9
EMA Length: EMA length of the "Velocity" graph. Default is 13
RSI Length: RSI length of the "Velocity" graph. Default is 14
RSI EMA Length: Length of the RSI EMA. Default is 9
Parabolic SAR Start: Start of the SAR parabola in the "Velocity" graph. Default is 0.02
Parabolic SAR Increment: Increment of the SAR parabola in the "Velocity" graph. Default is 0.02
Parabolic SAR Max: Maximum of the SAR parabola in the "Velocity" graph. Default is 0.2
Conclusion :
This indicator has been designed to determine the relative strength of the major currencies against each other. The aim is to know which pair to trade at the right time in order to maximize the probability of a successful trade. For example, if the USD is bullish and the NZD bearish, we'll short the NZDUSD pair.
Enjoy this indicator and don't forget to take the trade ;)
Relative Strength, not RSIThe Smoothed Relative Strength Indicator (not RSI) with Multi-Timeframe Support is a custom indicator that combines the concepts of Relative Strength (not RSI) and Money Flow Index (MFI) to create a smoothed trend-following tool. It works on any timeframe and adapts to different market conditions.
Key Features:
Multi-timeframe support: [ The script uses the request.security function to fetch data from other timeframes, allowing users to analyze the trend on different timeframes simultaneously.
Relative Strength calculation: The script calculates the Relative Strength (not RSI) by averaging the gains and losses over a user-defined period (len).
Money Flow Index calculation: The script calculates the Money Flow Index (MFI) by considering both price and volume data. The MFI is an oscillator that ranges between 0 and 100, and it helps identify overbought or oversold conditions in the market.
Combination of Relative Strength and MFI:The indicator calculates the average of Relative Strength and MFI values to create the Trend Reversal Strength (TRS) line.
Smoothing the TRS line: The TRS line is smoothed using a Simple Moving Average (SMA) with a user-defined smoothing length (smoothLen). This helps to reduce noise and make the trend more readable.
Trend color determination: The script determines the trend color based on the slope of the smoothed TRS line. If the current value of the smoothed TRS line is higher than the previous one, the line is colored green (uptrend). If the current value is lower than the previous one, the line is colored red (downtrend).
Visual representation of trend changes: The indicator plots small circles at points where the trend color changes, making it easier to identify potential trend reversal points.
Zero line: The script draws a horizontal line at the zero level to help users gauge the market's strength or weakness relative to this level.
Usage:
This indicator can be used as a trend-following tool to identify potential entry and exit points in the market. When the smoothed TRS line is green and rising, it suggests a bullish trend, and traders may consider entering long positions. Conversely, when the smoothed TRS line is red and falling, it indicates a bearish trend, and traders may consider short positions or exiting long trades.
Please note that this indicator should be used in conjunction with other technical analysis tools and proper risk management techniques to improve the accuracy of your trading decisions.
Relative Standard DeviationStandard Deviation is a common measure of volatility (the dispersion of data relative to its mean). However, when using it as an indicator, it can be more useful at times to know the deviation relative to the price as a percentage versus the hard value. This normalizes the data so that it is easier to compare the deviation of different assets. By definition, standard deviation is the square root of the variance, and it is how far the price is from the mean 68.2% of the time when there is normative distribution.
What it does : This indicator will tell you the standard deviation of the asset relative to its price (as a %), but also has the option to plot the normal (population) standard deviation.
Example use case : The regular standard deviation of Asset A is $12 and Asset B is $10. Which one is more volatile? Well, it depends on the asset price. If asset A just closed at $900 and asset B just closed at $30, that makes a big difference. In this instance Asset A $12/$900=1.33% (standard deviation relative to the asset price). Asset B $10/$30=33.33% (standard deviation relative to the asset price). Using a normal standard deviation indicator, you would just see that the standard deviation of Asset A is higher as a hard dollar value, when the reality is that Asset A is much less volatile.
How to use it : This indicator plots a blue line by default that is the Relative Standard Deviation of the asset compared to the asset price (a %). There is also an option to turn on / plot regular (population) Standard Deviation, which will plot as a purple line. The mean length used for the average, and the lookback period that the indicator uses to calculate, are both adjustable with inputs.
Indicator: Relative Volume Indicator & Freedom Of MovementRelative Volume Indicator
------------------------------
RVI is a support-resistance technical indicator developed by Melvin E. Dickover. Unlike many conventional support and resistance indicators, the Relative Volume Indicator takes into account price-volume behavior in order to detect the supply and demand pools. These pools are marked by "Defended Price Lines" (DPLs), also introduced by the author.
RVI is usually plotted as a histogram; its bars are highlighted (black, by default) when the volume is unusually large. According to the author, this happens if the indicator value exceeds 2.0, thus signifying that a possible DPL is present.
DPLs are horizontal lines that run across the chart at levels defined by following conditions:
* Overlapping bars: If the indicator spike (i.e., indicator is above 2.0 or a custom value)
corresponds to a price bar overlapping the previous one, the previous close can be used as the
DPL value.
* Very large bars: If the indicator spike corresponds to a price bar of a large size, use its
close price as the DPL value.
* Gapping bars: If the indicator spike corresponds to a price bar gapping from the previous bar,
the DPL value will depend on the gap size. Small gaps can be ignored: the author suggests using
the previous close as the DPL value. When the gap is big, the close of the latter bar is used
instead.
* Clustering spikes: If the indicator spikes come in clusters, use the extreme close or open
price of the bar corresponding to the last or next to last spike in cluster.
DPLs can be used as support and resistance levels. In order confirm and refine them, RVI is used along with the FreedomOfMovement indicator discussed next.
Freedom of Movement Indicator
------------------------------
FOM is a support-resistance technical indicator, also by Melvin E. Dickover. FOM is the ratio of relative effect (relative price change) to the relative effort (normalized volume), expressed in standard deviations. This value is plotted as a histogram; its bars are highlighted (black, by default( when this ratio is unusually high. These highlighted bars, or "spikes", define the positioning of the DPLs.
Suggestions for placing DPLs are the same as for the Relative Volume Indicator discussed above.
Note that clustering spikes provide the strongest DPLs while isolated spikes can be used to confirm and refine those provided by the Relative Volume Indicator. Coincidence of spikes of the two indicator can be considered a sign of greater strength of the DPL.
More info:
S&C magazine, April 2014.
I am still trying these on various instruments to understand the workings more. Don't forget to share what you learn -- any use cases / ideal scenarios / gotchas, would love to hear them all.