Kenji 2.0

27. Aug.

KenJi 2.0



Class: average analysis/trend following
Trading type: any
Time frame: any
Purpose: work in trend
Level of aggressiveness: any

About Kenji

The Kenji 2.0 indicator represents a fresh perspective on average analysis. Traditional trading strategies and indicators reliant on average analysis often generate a lot of false signals, particularly in flat market conditions characterized by frequent average crossovers and directional changes. Consequently, their efficacy and potency are compromised.

The "Kenji" Indicator overcomes these limitations through a unique algorithm (based on combination of correlation analysis and moving average analysis) designed to circumvent common pitfalls associated with average analysis. By accurately identifying the current market state—indicated by color (red for a downward trend, blue for an uptrend, and green for a flat market)—the Kenji indicator enhances signal quality, enabling traders to navigate local trends comfortably.

This indicator not only generates signals for entering positions at optimal times but also provides guidance on profit-taking. Additionally, it assists in assessing signal aggressiveness, making it a valuable tool for both novice and experienced traders.

Rules of Trading

The rules of trading with the indicator are very simple: when the price enters the buy/sell zone (depicted by a blue/red colored area between the fast and slow averages), a signal to enter a position is generated. This position remains valid until either the market state changes (e.g., a shift from a downtrend to a flat or an uptrend) or a signal to close it appears (indicated by a blue/red cross, signaling a significant divergence between the price and average values).

Structure of the Indicator

The indicator comprises colored zones and level lines:

- Colored zones (marked blue, red, or green) are utilized for identifying trading opportunities and detecting entry points.
- Level lines (marked red and blue depending on the current price direction) are employed to identify whether the current price direction is upward or downward.

To streamline the trading process, the indicator displays "buy" and "sell" signals on the chart.

These signals are categorized into two groups: standard (trading with the basic lot size) and aggressive (trading with double the basic lot size). Additionally, take-profit zones are visualized on the chart using blue/red x-crosses. Red x-crosses indicate zones where profits on "sell" positions should be taken, while blue x-crosses indicate zones where profits on "buy" positions should be taken.

Input Parameters of the Indicator

The indicator utilizes several input parameters for configuration:

• Slow Average Period: This parameter determines the period of the slow average. A larger period results in a more conservative response of the average to price changes.
  
• Fast Average Period: This parameter determines the period of the fast average. Similar to the slow average period, a larger period leads to a more conservative response of the average to price changes.
  
• Correlation Period: This parameter is utilized in correlation analysis to calculate the level of interconnection between the averages.
  
• Stop Sensitivity: This parameter determines the take-profit zones displayed on the chart in the form of red/blue x-crosses. A higher parameter value corresponds to a larger take-profit value.
  

Version 2.0 updates:

• Alerts and Notifications are added ("sell" and "buy" signals are sent as Alerts and Notifications).
  
• Improved vizualisation
  
• Improved algorithm (mechanics of stop-loss marks in modified)
  

Access to the indicator
Please address all questions about this indicator (including access to it) in private messages.