AFL Library

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Details:

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Description:

This indicator is meant to be added below a price chart. It is made to locate BIG turning points. The idea is to allow for entry points (and exits) where there is a definite turn instead of generating signals in regions that are essentially flat without any trend. I also use stops, both in backtesting and real trading because you\'re foolish to think every trade is a winner.

The best parameter to adjust first is the standard deviation range, the lower it is, the fewer signals will be generated. The other parameters are basically just to get a smoothly plotted black line.

Formula:

range1 = Optimize("range1",Param("range1",11,1,200,1,0),1,200,5);
range2 = Optimize("range2",Param("range2",6,1,200,1,0),1,200,5);
range3 = Optimize("range3",Param("range3",26,1,200,1,0),1,40,2);
StDevrange = Optimize("StDevrange",Param("StDevrange",90,1,200,1,0),1,200,2);
MAO = EMA(EMA(Close - EMA(Close, range1),range2),range3);
deriv = MAO - Ref(MAO,-1);
deriv2 = (deriv - Ref(deriv,-1));
Plot(MAO,"mao",colorBlack,styleLine);
Plot(deriv,"deriv",colorBlue,styleLine);
Plot(deriv2,"deriv2",colorRed,styleLine);
Buy = Cross(deriv,0) AND deriv2 > 1.5*StDev(deriv2, StDevrange);
Sell = Cross(0,deriv) AND deriv2 < -1.5*StDev(deriv2, StDevrange);
Short = Sell;
Cover = Buy;
shape = Buy * shapeUpArrow + Sell * shapeDownArrow;
PlotShapes( shape, IIf( Buy, colorGreen, colorRed ), 0, IIf( Buy, 0,0 ) );

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