Quantum Trend

16 cze 2023

Quantum Trend indicator is our new tool to trade on futures and spot markets in the world of cryptocurrency.

This indicator uses some advanced techniques to determine price reversals and filter them out with other indicators, such as oscillators (Stochastic RSI and etc.) and trend-based indicators (such as EMA and others), but even after filtering signals with these tools Quantum Trend indicator then applies our own private algorithm, based on our modified z-score mertic, which reduces lag drastically and helps find good entries faster.

What algo is behind the signals?
For finding new entries we used RSI- and stochastic-based oscillators, which help us determine potential price reversal movements. When new entry is found, we filter it through our own stochastic RSI filter (takes stoch RSI's pivot points into account to find better entries; pivot points left and right bars are hard coded into the indicator) with our private indicators, based on close-to-close volatility filter methods, to understand whether or not entry valid enough. Why stochastic RSI? Because it is much less messy than most of other existing oscillators (by our own opinion and experience).

That was first filtering stage, now comes the second.

In the second phase we filter out signals even more with our own modified-standard-deviation-based indicators (not Bollinger Bands!) to determine whether or not price went above or below 2 sigma channel, which would mean that current price's movement is extremely rare (because for going above 2 sigma or below -2 sigma there is only 5% chance (classic Gaussian distribution)) and the reversal will probably happen soon.
If signal passed all two phases of filtering, it will be showed on the chart.
Over all, this indicator uses our own private indicators, based on some core concepts, which we described above (classic Gaussian distribution for choosing signals with nice reversal moments, close-to-close volatility for understanding if market is volatile enough to make a good move, modified z-score metric for reducing lag and finding entries faster, own stoch RSI filter with pivot points for reducing lag and finding good reversal moments and etc.)
That's for idea reveal, now let's dive into the settings!

Indicator settings
Main Algo Settings — group of settings of the core algorithm, that forms signals.

• Signal Length* — determines how many bars from the past should be taken to make a signal.
  
• Signal Factor* — determines the threshold for signal quality.
  

* — the more this parameter is, the less signals you will get, but they will be more high-quality.

Signals to Show — determines which type of signals will be displayed on the chart:

• Classic — Long/Short signals;
  
• Strong — Strong Long/Short signals;
  
• All — Classic + Strong signals;
  

Signal Colours — group of settings for customizing signals' colours.

• Long — colour for Long signals
  
• Short — colour for Short signals
  
• Strong Long — colour for Strong Long signals
  
• Strong Short — colour for Strong Short signals
  

Filter for Strong Signals — group of settings for strong signals.

• Use Strong Signals? — enabling/disabling strong signals on the chart;
  
• Apply this filter to Strong Signals? — enabling/disabling filter for strong signals. When disabled, strong signals won't be filtered and there will be a lot more signals on the chart, but with less quallity.
  
• Fast Period* — number of bars for 1st group of candles to form a signal;
  
• Slow Period* — number of bars for 2nd group of candles to form a signal (we need these two groups to align short-term with long-term trend);
  
• Additional Filter Period* — period for filter indicator, which cuts out bad strong signals;
  
• Additional Filter Smoother Period* — period for filter indicator's smoother, which makes additionally smoothes signals to filter out bad ones;
  
• Filter's source — price souce for the filter (open, close, hl2 and etc.).
  

* — the more this parameter is, the less signals you will get, but they will be more high-quality.

2nd Filter — group of settings for the 2nd filter, which cuts out bad signals from Main Algo.

• Enable 2nd Filter? — enabling/disabling 2nd filter. When diasbled, there wiull be a lot more signals on the chart, but with less quality;
  
• 2nd Filter Length — period for the indicator, which is embedded in 2nd filter. Based on improved RSI;
  
• OverBought Lvl — level, which indicates that asset is probablyoverbought;
  
• OverSold Lvl — level, which indicates that asset is probablyoversold;
  

TP/SL Settings — Take-Profit/Stop-Loss settings

• Use TP? — Show take profits on the chart
  
• TP Mode — Take Profit mode (either zone or 3 levels (drawn on the chart))
  
• Take-Profit 1, 2, 3 Factor — Multiplier/factor for the 1st, 2nd, 3rd take-profits accrodingly. Determines the width of the take profits/zone (the higher the factor, the further the take profits are located from the entry point)
  
• SL Factor — Multiplier/factor for the stop loss (line on the chart; not displayed if the take profit mode is set to zone)
  

Whales Screener — screener, that shows where whales buy (green zones) and sell (red zones).

• Use Whales Screener? — enabling/disabling whales screener.
  

Support & Resistance Settings — group of settings for support and resistance lines.

• Support Color — Support color;
  
• Resistance Color — Resistance color;
  
• S/R Strength — Strength of support and resistance lines. The greater it is, the more reliable the S/R lines will be;
  
• Line Style — style of each S/R line (solid, dotted, dashed);
  
• Zone Width, % — Zone width in percentage of the price fro the last 250 bars;
  
• Extend S/R Lines — Extend the S/R lines to the right and left.
  

What timeframes to use?
This indicator was built to work on any timeframe, but our practice shows that it works best on higher timeframes such 30 minutes and more, but you should find by yourself which timeframe suits you best.

What markets can this indicator be applied to?
This indicator is market-indifferent, which means that you can use this indicator on any possible market.

How should I use this indicator?
Quantum Trend indicator can be a useful tool for finding entries and confirming signals from your own trading system, as it is built with multiple signal filter layers, which drastically reduce amount of bad signals. Also it is better to use other indicators to confirm signals, produced by Quantum Trend, because this way you will get even more high-quality signals.

Does it repaint?
No, this indicator doesn't repaint.

IMPORTANT, PLEASE READ!
This is indicator is not a Holy Grail of trading and we DON'T promote it as such in any possible way. As any possible indicator, Quantum Trend uses price data of the past, which CAN NOT guarantee perfect price predicitions of the future!

Hope this indicator will help you make a much better trading decisions!