Background The KDJ oscillator display consists of 3 lines (K, D and J - hence the name of the display) and 2 levels. K and D are the same lines you see when using the stochastic oscillator. The J line in turn represents the deviation of the D value from the K value. The convergence of these lines indicates new trading opportunities. Just like the Stochastic Oscillator, oversold and overbought levels correspond to the times when the trend is likely to reverse.
Function
[blackcat] L2 Leading KDJ Candle Indicator use candles to indicate KD relationship. E.g. yellow candles for bull (K>=D) and fuchsia candles for bear (K<D). On the other hand, to promote the response, there is a new leading line added into KDJ indicator with color change as yellow for K>=D and fuchsia for K<D.
Key Signal
k --> KDJ K value d --> KDJ D value buysig --> KD buy signal in green triangle selsig --> KD sell signal in red triangle leadingline --> colorful leading line for KDJ
Pros and Cons
Pros:
1. Candle height can indicates the strength of trend and different colors are used for indicating KD relationship 2. a leading line is added as aux method to confirm KDJ signal
Cons:
1. It may satruate for extreme conditions of long and short as described in the chart, which is inherent KDJ shortcoming. 2. Not accurate for long and short entries and need filtering out noise and fake signal.
Remarks
More direct to observe and confirm trend with the leading line.
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
Versionshinweise
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In order to obey the House Rule, remove the irrelevant MA Cross display.
Versionshinweise
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In order to obey the House Rule, remove the irrelevant MA Cross display.
Its indicators are spectacular. I use 4 indicators of yours in my graphical analysis and the correctness of entries and exits are perfect. How do you make level 4 and 5 indicators available?
breata
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This indicator is almost perfect. It has been integrated into my trading system, so entering and exiting a position is now an order of magnitude better than it was before. Thank you so much!
blackcat1402
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@breata, glad to hear that! this indicator indeed works better with other independent ones with resonance effect and confirm entry signal with less noise
Nav85
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Great work n thanks..
Karthi056
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Another precious. Thanks a lot.👍👍
ulomadgreat
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I backtested this indicator on the BTC weekly chart with the idea of entring and closing positions anytime it changes from pink to yellow colour, and results was wow! Is there a way you add arrow signify and a change of color? Thanks for this gift.