ZenAlgo - QZenAlgo - Q
Description
ZenAlgo - Q is an oscillator based on the QQE (Quantitative Qualitative Estimation) method. This version incorporates refinements for additional visualization and interpretation options. It is designed to help traders observe momentum changes and divergence patterns in price movements.
Key Features
QQE-Based Calculation : Derived from the open-source QQE script by Glaz (Metastock Version of QQE), with modifications for alternative visualization.
Dual RSI-Based Analysis : Uses two RSI calculations to provide additional context on price movements.
Adaptive Trend Bands : Adjust dynamically based on the market conditions.
Divergence Identification : Highlights potential differences between price action and oscillator movement.
Dynamic Color Coding : Displays histogram bars to illustrate shifts in oscillator values.
Configurable Alerts : Enables notifications for specific oscillator conditions.
How It Works
The indicator calculates a smoothed RSI-based oscillator that tracks the relative strength of price movement. It applies an exponential moving average (EMA) smoothing to reduce noise while maintaining responsiveness.
Two adaptive bands are calculated using a variation of the QQE method, which helps define dynamic overbought and oversold conditions.
The histogram bars shift in color based on the position of the oscillator relative to the bands. Lighter shades indicate weaker momentum, while stronger momentum is represented by more saturated colors.
The script also includes a secondary RSI component, which provides an additional layer of analysis. This secondary RSI helps refine momentum trends by smoothing out short-term fluctuations.
Divergence identification is built-in, highlighting where price action deviates from oscillator readings. Bullish divergence occurs when price forms a lower low while the oscillator forms a higher low, and bearish divergence is identified when price forms a higher high while the oscillator forms a lower high.
The indicator does not generate buy or sell signals but instead provides contextual information that can be used alongside other trading strategies.
Use Cases
Trend Observation : Traders can use the histogram to observe whether momentum is strengthening or weakening over time. A shift in color can indicate a potential change in trend strength.
Divergence Analysis : By comparing oscillator divergence with price movement, traders can identify situations where price action may be losing momentum. Divergences do not guarantee reversals but can serve as an early warning to re-evaluate positions.
Momentum Tracking : The dual RSI structure allows users to monitor both short-term and long-term momentum. When both RSI components are aligned, it suggests a more stable trend, while divergence between them may indicate potential consolidation or trend shifts.
Supplementary Analysis : This indicator is best used as a supporting tool alongside volume-based or trend-following indicators. It helps visualize underlying price behavior but should not be used in isolation for decision-making.
Market Context Interpretation : The combination of adaptive bands and histogram visualization allows traders to assess how recent price action compares to historical movement, helping to place current conditions in a broader market context.
Attribution
This script is an adaptation of the open-source QQE script originally developed by Glaz. We acknowledge and appreciate the original author's work, which served as a foundation for our modifications.
Disclaimer
This indicator is intended for informational purposes only. It should not be interpreted as financial advice. Always conduct independent research and risk management before making trading decisions.
Longsignal
NOMMO AUTOMATE🖖 Hi all!
Check out my NOMMO AUTOMATE indicator for trend detection, trend change points, hedging opposite trend impulses.
What the script do:
☑️ Detecting local and global trends and trend change points, detecting opposite to current trend impulses.
How the script do it:
☑️ The indicator compares RSI indicators on chosen by user Trend TF1 and Trend TF2 and marks trend change points.
☑️ The indicator compares different length HMA indicators on chosen by user Hedge TF to detect opposite to current trend impulses.
How to use it:
☑️ There are 4 states in the indicator: Long, Short, Flat, Hedge, marked by corresponding (adjustable) color zones, where Long = uptrend, Short = downtrend, Flat = sideways movement, Hedge = possible impulse in the opposite trend direction.
☑️ Select Trend TF1 and Trend TF2 and RSI length to determine the trend, depending on how a big picture you want to see, the more major TF you choose the more global picture of the trend change you get.
☑️ Select Hedge TF to determine the possible impulses opposite to the current trend (does not work in detected Flat movement).
☑️ For each trading pair you need to try individual settings, the default settings I use for BTC swing trading, to reduce the noise level of hedging put Hedge TF the same as the smaller Trend TF.
☑️ Try different settings, experiment and you will find the most suitable settings for your trading pair.
How magic works:
☑️ RSI Trend TF1 > 50 + RSI Trend TF2 > 50 = Long
☑️ RSI Trend TF1 > 50 + RSI Trend TF2 < 50 = Flat
☑️ RSI Trend TF1 < 50 + RSI Trend TF2 > 50 = Flat
☑️ RSI Trend TF1 < 50 + RSI Trend TF2 < 50 = Short
☑️ Long + Hedge TF (HMA 10 < HMA 70 < HMA 200) = Hedge
☑️ Short + Hedge TF (HMA 10 > HMA 70 > HMA 200) = Hedge
For example:
☑️ Try Trend TF1 = 1D, Trend TF2 = 1D and Hedge TF = 1D, with RSI period = 21, to check mid-term trend on BTCUSD
May the trade force be with you.
