NeoTraders NB Indicator Lab

[forexripper]

hmmm... i see where the problem is... since you told me that we should get rid of the algebraic sign i did the comparison weak/strong after the removal of the sign. But you are correct... the comparison should take effect before the removal. I will check it...

ok did check it...
But now we have another problem .... the Ratio slope goes sometimes way out of the charts ... up to 200 and more...that makes the chart unreadable and unusable...do you have any idea for this?

thanks in advance...

NeoTrader[/quote]

I guess if we restrict it to D1 only then perhaps it would make sense in how we read it. I suggest you change calcs and restrict it to D1 only so we know how quickly longer term trend is ending. This will allow us to close positions earlier or avoid taking any more positions in the direction of the trade (let it retrace and then back on).

Higher the ratio the risky it gets to trade in direction of the trend. So if it gets above 0.9 we should exit all and wait for retrace to get over and once it gets back down below say 0.8 we should look for trades in overall slope direction (on D1).

[NeoTrader]

Hi forexripper,

I guess if we restrict it to D1 only then perhaps it would make sense in how we read it. I suggest you change calcs and restrict it to D1 only so we know how quickly longer term trend is ending. This will allow us to close positions earlier or avoid taking any more positions in the direction of the trade (let it retrace and then back on)

I checked all TFs D1, W1, MN...all have spikes up to 100 and more in it...must check it a little further if this is an MTcrap problem...but also if we have values of 10 and greater....the chart becomes unreadable...

This chart is meant to be in the range of the tma... this means max. between +1.5 to -1.5
If you find a solution to this problem i will try to fix it otherwise i will let the ratio in as it is till the next release and will remove it then.

thanks in advance,

NeoTrader

[forexripper]

Hi forexripper,

I guess if we restrict it to D1 only then perhaps it would make sense in how we read it. I suggest you change calcs and restrict it to D1 only so we know how quickly longer term trend is ending. This will allow us to close positions earlier or avoid taking any more positions in the direction of the trade (let it retrace and then back on)

I checked all TFs D1, W1, MN...all have spikes up to 100 and more in it...must check it a little further if this is an MTcrap problem...but also if we have values of 10 and greater....the chart becomes unreadable...

This chart is meant to be in the range of the tma... this means max. between +1.5 to -1.5
If you find a solution to this problem i will try to fix it otherwise i will let the ratio in as it is till the next release and will remove it then.

thanks in advance,

NeoTrader

I am thinking but for now I will work with the Diff values and see if they help me. Thanks for being so patient.

[NeoTrader]

I am thinking but for now I will work with the Diff values and see if they help me. Thanks for being so patient.

I was answering you post when you deleted it...

I am not sure if I understand the issue here.
E.g. NZDJPY D1 slope (true) values: NZD 0.85 and JPY -0.37 so the ratio is 0.37/0.85=0.435 which can be easily plotted onto the chart as histo.
Or am I not getting it at all. Sorry if I am bothering you here. Thanks for being so patient. I should learn this from you.

just to remember your last example:

say AUDJPY where AU is strong but ratio calculates taking JPY as strong so instead of ratio of 30 it showed then 0.03. pls check this one

This kind of values (30) makes the chart unusable...because the rest of the slopes are compressed to a size no one can read or see them anymore...most of the time the values are in the range...this is why the ratio slope as it is now works, and most of the time the calculation is also correct.... But a single value over the value of 2 compresses the whole chart to an useless line with a spike in it...
See Picture below...

_Ratio Slope with high numbers.png

Do you see how only two values with 10 and 20 destroy the whole chart?

Actually i know that the ratio calculation is not 100% right....but i think i see some kind of behavior when it has spikes in the version that is released now.

I need to evaluate this a little further...

Tell me if you have an idea on how to solve this high number problem...otherwise I think I will let the ratio slope in as it is...especially when I can confirm the pattern ....

happy trading...

NeoTrader

[youcrazykids]

Hey Neo

Two suggestions for the "high number problem":

1) If the currency pair features the JPY in it, how about dividing by 100? So for example, a GBPJPY price of 125.00000 becomes 1.25000, making the "scaling" more befitting the subsequent calculations? I'm not familiar with the maths behind the ratio or slope calculations, so please disregard this if I'm way off the mark. Just seems rather suspicious that the currency with the high range causes the ratio problems.

2) Go to the Indicator Properties window, to the Common tab, and fix the indicator window minimum and maximum values to your preferred values. It isn't a proper fix, but could help for the time being.

Great work by the way!

Thanks

youcrazykids

[NeoTrader]

Hi youcrazykids,

Two suggestions for the "high number problem":

Thanks for your suggestions...

1) If the currency pair features the JPY in it, how about dividing by 100? So for example, a GBPJPY price of 125.00000 becomes 1.25000, making the "scaling" more befitting the subsequent calculations? I'm not familiar with the maths behind the ratio or slope calculations, so please disregard this if I'm way off the mark. Just seems rather suspicious that the currency with the high range causes the ratio problems.

I also thought about dividing it...but this is not the problem...the calculations are based on the CSS and the TMA that is behind this calculations. The results of the ratio calculation like forexripper want it would always be at some point off the chart since CSS and TMA are most times in the range between +2 and -2 with highs that go up to +- 3 or 5 at some really crazy times or Monday gaps.

The calculation as it is now is really simple:

Code: Select all

	if ( MathAbs( currencyBaseValue ) < MathAbs( currencyCrossValue ) ) 
		ratioSlopeValue = MathAbs( currencyBaseValue ) / MathAbs ( currencyCrossValue );
	else if ( MathAbs( currencyBaseValue ) > MathAbs( currencyCrossValue ) ) 
		ratioSlopeValue = MathAbs( currencyCrossValue ) / MathAbs( currencyBaseValue );

MathAbs gets rid of the arithmetic sign (no negative numbers). The currencyValues are the CSS Values that you also see in the Table on the right above the Diff and Ratio Values eg. NZD and USD
The real calculation is the same as above just without the mathabs part in the if comparison.

2) Go to the Indicator Properties window, to the Common tab, and fix the indicator window minimum and maximum values to your preferred values. It isn't a proper fix, but could help for the time being.

I tried this also...but then you can see the rest of the chart better...but the ratiolines will have no use since you cant point on to them to see the value of them...since they are still off the chart...

Great work by the way!

Thank you for your appreciation...

I will see what i will do with the ratio line...

happy trading,

NeoTrader

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[kelisa]

NT - I see there is a diffCross alert at the specific levels. But how do u read the ratios? At what ratios would you decide to place an order? Thanks

[NeoTrader]

Hi kelisa,

NT - I see there is a diffCross alert at the specific levels. But how do u read the ratios? At what ratios would you decide to place an order? Thanks

Ok...first the ratios...
The Ratio slope as for now is a little buggy... I still don't know as of yet if it is a bug or a feature..
The intention of forexripper was to have a ratio weaker/stronger of the pair based on the CSS values of this pairs.
If i use his original calculation the ratio slope would go of the chart at times making the chart unreadable. My calculation of the ratio slope is the same as before but without the arithmetic sign...this means if both CSS are on the same side of the 0-line the calculation is correct but if one is minus and the other one plus the calculation is sometimes off...this are the little spikes you see in the ratio slope. At least I presume that, since they occur often when the diff-slope crosses zero or the currency slopes crosses each other or the diff line.

I am still analyzing the value of the ratio slope and can't give you trustful advice in how to use it.
As of now i see that the spikes could be used as a indicator for a possible strength change...
Also a strong cross between diff- and ratio-slope seem to show a good directional change.

As I said I'm still analyzing...you can join the party if you want.. Just turn on the tmaTrueMode, than you can visually backtest and share your findings...if you find something..

... as for the Diff slope...
I use the Diff to show me the strength direction the pair is going and if strength is building up for the base currency (first currency of the pair) or it is going down... below 0, -0.4, -08 I will look only for a sell in the base currency and above 0, 0.4, 0.8 only for buys.

I use it a little like the TMAslope and also in combination with it...TMAslope shows me the current strength of this pair only, TMA-CSS-SP shows me the overall strength of the currencies involved in this pair. especially the Diff line...

Possible entry is after the cross of the 0.4 Levels and the diff slope is developing in the same direction as the signal. eg. diff crossed -0.4 level and is falling further...good to sell and vice versa.
Also crosses between diff and ratio slope indicate some good entry points ...

But I haven't found a definitive rule set as of now...still analyzing and back-testing.
Use the tmaTrueMode to check for yourself if you find some interesting patterns..
Would love to get some input from other people to.

happy trading,

NeoTrader

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[dietcoke]

The intention of forexripper was to have a ratio weaker/stronger of the pair based on the CSS values of this pairs.
If i use his original calculation the ratio slope would go of the chart at times making the chart unreadable. My calculation of the ratio slope is the same as before but without the arithmetic sign...this means if both CSS are on the same side of the 0-line the calculation is correct but if one is minus and the other one plus the calculation is sometimes off...this are the little spikes you see in the ratio slope. At least I presume that, since they occur often when the diff-slope crosses zero or the currency slopes crosses each other or the diff line.

I am still analyzing the value of the ratio slope and can't give you trustful advice in how to use it.
As of now i see that the spikes could be used as a indicator for a possible strength change...
Also a strong cross between diff- and ratio-slope seem to show a good directional change.

As I said I'm still analyzing...you can join the party if you want.. Just turn on the tmaTrueMode, than you can visually backtest and share your findings...if you find something..

Neo, Forexripper,
Maybe I'm really thick and missing something here but I don't see what a ratio gives you that the difference doesn't?

As it stands if one slope is big (either +ve or -ve) and one is small (either +ve or -ve), then using a ratio will cause an unwanted spike.

If both slopes are big (one +ve and one -ve), you'll get a spurious low value for the ratio.

To use a ratio, you have to calculate the slopes in a way which always generates a positive number for the slope

This will have the effect of exaggerating big differences and making then easier to see on a plot , but that still begs the earlier question.

Is this telling us anything the difference does not already give us??

What would be the entry methodology using a ratio method that is fundamentally different from the std difference entry below?

... as for the Diff slope...
I use the Diff to show me the strength direction the pair is going and if strength is building up for the base currency (first currency of the pair) or it is going down... below 0, -0.4, -08 I will look only for a sell in the base currency and above 0, 0.4, 0.8 only for buys.

I use it a little like the TMAslope and also in combination with it...TMAslope shows me the current strength of this pair only, TMA-CSS-SP shows me the overall strength of the currencies involved in this pair. especially the Diff line...

Possible entry is after the cross of the 0.4 Levels and the diff slope is developing in the same direction as the signal. eg. diff crossed -0.4 level and is falling further...good to sell and vice versa.
Also crosses between diff and ratio slope indicate some good entry points ...
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[NeoTrader]

hi dietcoke,

Maybe I'm really thick and missing something here but I don't see what a ratio gives you that the difference doesn't?

As it stands if one slope is big (either +ve or -ve) and one is small (either +ve or -ve), then using a ratio will cause an unwanted spike.

If both slopes are big (one +ve and one -ve), you'll get a spurious low value for the ratio.

To use a ratio, you have to calculate the slopes in a way which always generates a positive number for the slope

This will have the effect of exaggerating big differences and making then easier to see on a plot , but that still begs the earlier question.

Is this telling us anything the difference does not already give us??

What would be the entry methodology using a ratio method that is fundamentally different from the std difference entry below?

good questions...and I'm with you with most of your assumptions.

I implemented this ratio slope because forexripper had the idea and I would try and check this out...
A visual interpretation of an idea is better to analyze then only the theoretical base...

This Indicator was meant to help me in the analysis of CSS and related topics.

We should see the ratio line as an experiment for now... as i mentioned in my last message I also don't know if the ratio has really much value...

As of now the combination of ratio an diff (especially strong crossings of them) seems to show possible entry's or directional changes sometimes at a earlier time...and the spikes also...and sometimes not...

If you feel distracted by it you can always turn it of...

happy trading,

NeoTrader

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