Not exactly sure what you are looking for, but I tend to write things like this:
1) When the velocity of a signal is positive, wait for its acceleration to turn negative 2) When the velocity of a signal is negative, wait for its acceleration to turn positive I "roll my own" because I generally have a good idea of how I want this to work, so I write the indicator from scratch. For a basic start, I start with an oscillator (velocity is an oscillator, because it oscillates between a positive and negative value), that has a "long" time period. Then my acceleration is based on doing two "short" time period EMA's, one much shorter than the other. Positive or negative velocity is determined by subtracting one from the other. There are other ways of doing this as well, such as comparing the value now to the value X seconds ago. Also the underlying EMA's could be based on the velocity signal, or something else, whatever it is that has suddenly reversed. You want the "velocity" to have much longer averaging value, so that a "strong" trend remains as a relatively large value, even once the trend starts to reverse. The acceleration is trying to figure out when this velocity is changing direction, so it should be much shorter time period. >From there you can figure out the strength or validity of a reversal by putting some conditions on it. If you want to look for a strong trend, then only pay attention when the velocity is large. When you want a strong reversal, look for large acceleration. To keep the size of the reversal relative to the size of the trend, look for large acceleration/velocity. I hope this is helpful to someone. On Fri, Dec 3, 2010 at 4:17 PM, shane <[email protected]> wrote: > I think I've seen this before, but not sure where. I am looking for a > reversal indicator, that shows the strength of a reversal. Not > looking for something that is predicting a reversal, but shows the > actual strength of the reversal as it's happening or shortly > thereafter. It's okay to have some lag. Does anyone here know of > anything like this? > > Shane > > -- > You received this message because you are subscribed to the Google Groups > "JBookTrader" group. > To post to this group, send email to [email protected]. > To unsubscribe from this group, send email to > [email protected]<jbooktrader%[email protected]> > . > For more options, visit this group at > http://groups.google.com/group/jbooktrader?hl=en. > > -- You received this message because you are subscribed to the Google Groups "JBookTrader" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/jbooktrader?hl=en.
