Ekambit Strength Index (ESI)

28. Mai 2020

Ekambit Strength Index ( ESI ) is an improved relative strength oscillator, which makes it easy to identify trends and reversals using weighted multi-timeframe comparisons in a single chart.

We at Ekambit Technologies use it daily with consistent success in Indian markets, especially with NIFTY and BANKNIFTY.

ESI indicator rules:
1) Above mid-zone & rising: uptrend
2) Falling from high-zone: uptrend reversal
3) Below mid-zone & falling: downtrend
4) Rising from low-zone: downtrend reversal

Apply the same indicator to VIX (in the same chart!) or up to 3 correlated instruments to gain greater conviction for your trades, as shown in the chart.
In addition to the chart timeframe, optionally 3 higher weighted timeframes can be used in ESI computation.

In effect, ESI is a single indicator which provides an insight of 16 indicators (4 timeframes * 4 instruments).

In the example shown,

• Purple = NIFTY
• Green = BANKNIFTY
• Red = INDIAVIX

The same color coding is used for ESI indicator as well, and reasoning for each trade is shown in the chart based on ESI indicator values.


Use the link below to obtain 7-days free access to this indicator.

5. Mai 2021

Versionshinweise

Ekambit Strength Index ( ESI ) is an improved relative strength oscillator, which makes it easy to identify trends and reversals using weighted multi-timeframe comparisons in a single chart.

We at Ekambit Technologies use it daily with consistent success in Indian markets, especially with NIFTY and BANKNIFTY.

ESI indicator rules:
1) Above mid-zone & rising: uptrend
2) Falling from high-zone: uptrend reversal
3) Below mid-zone & falling: downtrend
4) Rising from low-zone: downtrend reversal

Apply the same indicator to VIX (in the same chart!) or up to 3 correlated instruments to gain greater conviction for your trades, as shown in the chart.
In addition to the chart timeframe, optionally 3 higher weighted timeframes can be used in ESI computation.

In effect, ESI is a single indicator which provides an insight of 16 indicators (4 timeframes * 4 instruments).

In the example shown,
[li]
* Purple = BANKNIFTY (main symbol in thick line)
* Red = INDIAVIX
* Blue = CNXPSUBANK
* Green = NIFTY50EQUALWEIGHT
[/li]
The same color coding is used for ESI indicator as well, and reasoning for each trade is shown in the chart based on ESI indicator values.

29. Mai 2021

Versionshinweise

• Minor improvement to input
  
• Showcase new example from May-2021
  
• Show ESI indicator's usage together with EVSI indicator, for a stronger conviction before entering and exiting trades
  

In the example shown above:
ESI purple line = NIFTY1!
ESI blue line = A positively correlated instrument to NIFTY
ESI red line = A negatively correlated instrument to NIFTY

Long and Short positions can be entered with conviction based on ESI or EVSI indicator's forecast.

It's really intuitive and repeatable, you should try both indicators together as a pair.