This is a reverse engineered completely free Version of an Indicator that you would normally have to spend huge amounts of money on. I personally believe that no one should pay a fortune for access to an Indicator that contains huge amounts of freely available stuff. This indicator claims to be even better than Market Cipher. Turns out it uses - just as Market Cipher, freely available Indicators and puts them in a nice looking package. I packed in as much as it made sense, the original Indicator is visually very cluttered with - in my opinion, too much random stuff that I have left out for a cleaner look, for example the truckload of entry signals, MFI and that Autotrendline feature that no one really needs because the human brain is way better at drawing lines.
Was is included? From top to bottom:
1st Bar -> Color coded RSI status. It shows Oversold and Overbought, Bullish, Hidden Bullish, Bearish and Hidden Bearish Divergences.
2nd Bar -> Color coded Market Structure Analyser. It shows if the market is currently ranging, bullish or bearish based on calculated pivots and outbreaks of said pivots. Bullish and Bearish breaks are also being printed.
Main Oscillator -> An Awesome Oscillator (AO) that prints bullish, hidden bullish, bearish and hidden bearish divergences as well as positive and negative Pivot Points.
Bollinger Bands -> They are following the AO and are color coded to the long term trend indicator for less visual clutter.
3rd Bar -> Color coded longer term trend indicator, it mirrors the color code on the Bollinger Bands. The original uses an ATR-based calculation, but I found a Kumo cloud to be more simple and more reliable for this kind of thing.
4th Bar -> Color coded mirror of the Accelerator Oscillator.
I tried to make the whole Indicator as adjustable as possible, most of the variables can be edited to your liking. On the internet you can find all sorts of strategies for every single of the included indicators. I hope that I have saved you at least some money. Good luck.
This indicator is beyond me at the moment, but your philosophy of make a free and open source version of a tool that was based on free and open source components is outstanding!!!
Sidddy22
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Hey Adonis,
Awesome script!
Is there a way of finding out exactly how this works?
Thanks!
AdonisWerther
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@Sidddy22, The main oscillator is the "Awesome Oscillator" it is considered a "leading indicator" - in contrast to a "lagging indicator" just as RSI, Moving Averages etc. it does not show a confirmation what already happened on the chart, but it shows what might happen in the future. For example: The chart is climbing while the awesome oscillator is slowly declining, gets weaker and weaker, maybe even prints bearish divergences? That means that a reversal might be occurring soon. Leading indicators are best paired with Stop and Resistance Lines, general Trendlines, Fib Retracements etc. but can also be paired with "lagging indicators", just as in this Indicator package its paired with the RSI Bar, Market Structure Bar and Kumo Cloud Trendbar...Your chart is approaching a very important Resistance Trendline but the AO shows a very positive signal? That means there is a high probability that the Resistance is going to be pushed though and becomes Support in the future, if this assumption is backed up by the RSI, Kumo trendbar or the market structure bar, then a trade might be considered.