My latest indicator idea is a scale from 1-4 representing the strength of a move measured by the distance / location achieved by the last fractal move.
The green and the red little squares on the chart, yes.
Notice the break out on the image below, on the left.
Price broke through the red line, got a 4-score and then proceeded to stampede until the range got re-aligned with a new sync high printed (the S1 on the screen). As soon as the new range was made, there was noting that ever registered higher than a “1” on the upside, but the pullback went to “2” on the downside. This subtle change in dynamics is what I wanted to be able to give new visuals to. The last swing print to the downside was a “1” – that is weak. Remember what happened when there were only 1-prints on the upside.
Other: the stochastic bars hybrid got incorporated into the bottom oscillator (as white star looking things) to save surface. I made a Rebound hedger routine that is based on this signal: if there was a star, it buys / sells the pullback in the next 10 bars. It also crops its own positions when they reach the opposite end on the scale. All RSI2 readings based.
This would be buying the following pullback for instance:
The vertical lines are the “stops”. They are showing the end of an at least 2-sequence run that expanded the range to beyond 1/2 fluctuation size in the last 4 samples. They are my current definitions of end of waves. As you can see, I don’t call everything a wave, anything that remains within the fluctuation cap is not a wave.
The green mesh at the top / bottom of the oscillator is meant to draw attention to an RSI2, 2 or 98 reading on the 4-Hour chart, that is basically an over-rider function: whatever you do, don’t sell / whatever you do, don’t buy while the condition persists. When the condition is waived, then it is time to go crazy.
(The chart screen plots are all part of the 88 Luftballons routine, and the bottom indicator goes by the name of _RSI2_)
This final image below shows the 2 bounces occurred on the way down, the first, that has a sharpie box high light, was the hedge trade I mentioned above that made a kiss good bye to E-16, and the second bounce – the second sharpie high light – was prompted by the end line (purple) triggered buy box (s1 / support1, s2 / support 2) and was the only move back up that actually made it to a wave status (teal vertical line). It also shows a terminal move line (in black) into the S1 sync low.
(End lines, terminal waves, sharpies and the thick strike out lines are plots of the God Awesome indicator 1.5).
…and the image posted after the last image does show the second terminal wave as well.