Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX
Opis
⋅
Approach for detecting price 'chop'.
It's quite simple; instead of trying to detect chop, just measure the weakness of a trend.
This is done by essentially taking two moving averages, measuring their relative difference and then take a moving average of this difference of 'n' periods (Lookback)
The result can be measured against a threshold 'floor' which determines the weakness of the trend and thus, chop.
I use portions from NGBaltic's work: tradingview.com/u/NGBaltic so the responsiveness of the detection is slightly higher than bog standard EMAs.
Might be of some interest to bot developers, play with the settings!
Great script this one. Wonder if its possible to make the Threshold a % of the smooth? maybe make smooth bound by 10? like an oscillator.. i will try and work it out but appreciate your help and suggestion.