Underworld hunter is a combination of triple smoothed moving average, its 1.8 deviations and RSI printed right into your chart. All its parameters can be modified in order to deliver maximum benefit.
Original idea was to identify areas of correction. When RSI extreme disappears and the price is outside of deviations, I would have gone against the trend and wait till retraces a bit. However, I didn't find this setup to be particularly effective in most markets.
When zoomed out, you can see that Underworld Hunter can accurately identify a trend in the current EURUSD market. If the price is outside the deviations, the trend is strong. The closer the price is to a middle moving average, the more sideways and less trending the situation is.
I think it is best to send you to see how Underworld Hunter behaves and figure out if it is a helpful tool for you. I might as well develop some strategy testing algorithms later.
Why is it called Underworld Hunter? In Dota 2 lore, there is a bird that hunts for souls that escape the Underworld. The original strategy works pretty much the same way - you are supposed to hunt for the price that escapes the channel. I kind of like fantasy-themed names for my indicators...
Please report back in comments how do you intend to use my tool and how did your handtesting go! Thanks.
Checked on a 5/15 min chart... hahaha big fan.. love this one
mmrllmonta
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love this one man... hope there's a volume moving average inside of it measure volume on a moving average inside a bollinger
OrcChieftain
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@mmrllmonta, No, the script doesn't account for volume. @eylwithsteph intends to improve it with an option to select a particular MA you like. It should be available someday. I guess sometime next week.
mmrllmonta
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@greenmask9, big fan man... loving it hopefully it may help me recover from my losses... God bless you mate!
OrcChieftain
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@mmrllmonta, It has the potential. How far back did you backtest it? I am not sure how well it looks in markets prior to coronavirus explosion.
I will be also publishing backtesting algorithm for a very simple strategy to help adjust the settings for a specific market.
mmrllmonta
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@greenmask9, my group are testing it now... but its really nice when placed in 5/15 min tf... gotta include other indicators too
OrcChieftain
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@mmrllmonta, I haven't used UH for a real trade yet, but I would go with Volume Profile and day type theory as number #1 support for UH. If you find something else working marvellously, you can come back and report as it might be an inspiration for an improved version. Thanks :)