[blackcat] L2 Dual KDJ Indicator

9 Oca 2021

Level: 2

Background

I am wondering how it works with short-term and middle-term KDJ indicators put together to emulate MTF.

Function

Use a fast and a slow KDJ to combine signal together to judge trend

Key Signal

oversold --> oversold signal for long
reentry --> re-entry signal for long
addmore --> buy more signal for long
sellready --> overbought signal for short


Pros and Cons

Although it can filter out some noise, dual KDJ still have saturation issue. It may not so reliable when there are extreme market movements as similar to signle KDJ indicators.


Remarks

It improves KDJ to some extent, but it does not satisfy me yet. Keep improving.


Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

17 Nis

Sürüm Notları

OVERVIEW
The [blackcat] L2 Dual KDJ Indicator is a sophisticated technical analysis tool that combines dual KDJ oscillators with advanced divergence detection to provide comprehensive market insights. 📈

FEATURES

• Dual-period KDJ Oscillators:

Short-term (7-period) KDJ for immediate momentum assessment
Long-term (17-period) KDJ for broader trend analysis
• Advanced Divergence Detection:

Bottom and top divergence identification
Multi-timeframe comparison for reliable signals
• Comprehensive Signal System:

Oversold conditions detection
Re-entry signals during pullbacks
Additional confirmation signals
Overbought condition alerts
HOW TO USE

Setup: Add the indicator to your chart and adjust the period settings if needed.
Interpretation:
Monitor dual KDJ candles for trend direction
Watch for signal areas (yellow, orange, lime, red)
Pay attention to horizontal threshold lines (10, 50, 90)
Trading Signals:
Long Entry: When KDJ crosses above 20
Short Entry: When KDJ crosses below 80
Oversold Conditions: Below 10 level
Additional Signals: Look for green areas
LIMITATIONS

• Best suited for trending markets
• May generate false signals in choppy markets
• Requires additional confirmation for optimal results

NOTES

The indicator uses two different timeframes to reduce lag
Divergence detection helps filter out false signals
Alert conditions can be customized in TradingView settings