I’m sure I could have found it online somewhere, but this is an easy indicator, so I coded it up myself. Programming for TradeStation is pretty easy so far. I was able to start up the platform for the first time last night, and I’ve already duplicated the most important aspects of my QuoteTracker setup.
Here’s a screenshot of the ergodic candle oscillator. You use it pretty much like an MACD, though it can trend much longer than an MACD generally will. Another nice thing about it, is that it is not confused by gaps like most indicators are. You can see in the screenshot, that by watching the crossover with the signal line, you could catch both the upswing and downswing in TEK (in real trading today, I caught the upswing):
And, here’s the RWT_ERGODICCANDLEOSC.ELD file you can import into your TradeStation platform, if you want.
September 22nd, 2007 at 1:57 pm
is this similar to the trend indicator used at eotpro?
September 22nd, 2007 at 2:25 pm
@john: nope, this is an indicator I enjoyed using in Quotetracker, so I made a version for TS.
It’s based on the cumulative strength of individual candles over time. That makes it very interesting, and different from other “strength” indicators like RSI or MACD. For one, that’s how it manages to process gaps unfazed… each computation only depends on a single candle. That also means this indicator has no clue whether the price is going up or down or sideways. So, it can make divergences easily when–for example–candles are strong yet the stock’s not really rising yet.
September 23rd, 2007 at 9:25 pm
interesting…thanks