Plots the momentum acceleration oscillators from price and RSI, rescaled and with areas above/below highlighted.
Usage: in a nutshell, when the background is yellow, it's bearish (RSI decelerates faster than price), whereas when the background is green, it's bullish (RSI accelerates faster than price). It appears to detect early some reversals that are otherwise difficult to detect.
Note: it supports using any other indicator's output as the second source input, instead of RSI. PineScript does not allow for more than one source to receive input from other indicators, all the others must only use price as an input.
This indicator uses the core routine to calculate Momentum Acceleration Oscillators by DGT:
This indicator is based on the idea of stinkbug: "RSI is a good momentum indicator showing how excited ppl are on a move, this is why divergences on it work so well. I would like to see the change accelerating or slowing on a move up or down.."
Thanks for doing this, I want to compare previous accelerations to each other. Sometimes its hard to do so with just pure RSI. I will check it out and send feedback...mcuh appreciate it.
tartigradia
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@stinkbug, You're welcome, and thank you for sharing your idea :-) Yes I figured you'd want to try other indicators than RSI, feel free to do so! However as I noted, you can only replace RSI by another indicator on the GUI because of a limitation in PineScript, so if you want to add other indicators or keep RSI and compare against others you will need to code them in. The code is much more simplified compared to DGT's since it's focused on this simple idea without all the functionalities provided by DGT's script, so it should be pretty straightforward to do so :-)
stinkbug
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@tartigradia, is there a way to put a % Chg Variance like in column format? So what I really am trying to get to is how much acceleration 1 move had vs a more recent move. like if price changed 1 month ago by avg 3% daily and RSI was moving 5%, then a month later similar move with 2-3% price but only 2.5% rsi change meaning a divergence will likely come.
tartigradia
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@stinkbug, Well I think that if you set the timeframe to monthly, then you get exactly what you suggest, which is that each timepoint of the curve will represent the average RSI momentum over the whole month, so that you can compare the average momentum between each month. You can just hover the mouse over the curve to display the values (if the indicators arrow is unrolled in the top left corner). About making a table, I'm not wizard enough as DGTrader is to make one ';-)
HI! Can u pls show me sharp coefficient for this strategy?
tartigradia
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@vasilykovalenko2000, Hello, thank you for your suggestion, but I don't know what is a "sharp coefficient"? Could you please give me an example or a resource about this and I will try to provide you with the info, thank you!
vasilykovalenko2000
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@tartigradia, It*s my homework - write a simple strategy ( about 50 lines in pine redactor) and it must show profitability about 10-20 % in a year