Adaptive Delta v1.0 [by TC]
Adaptive Delta is a very reliable indicator that generates accurate buy and sell signals.
The algorithm script is based on a momentum strategy and depends on an exponential smoothing technique to filter false signals. The adaptive smoothing technique will optimize the fit with the price while having minimal signal delay and is adaptive to the volatility of the underlying instrument.
The Adaptive Delta indicator works very well for all instrument types and timeframes. It can be used for regular long and short entries/positions, as well as for swing trading strategies. You are able to adjust the average calculated true value of the price input: Src, input = (Src1 + Src2)/2
The default settings of the Adaptive Delta indicator are optimized for use on all timeframes. If you use the indicator to trade lower or higher timeframes, you may need to adjust the default settings to optimize it for your trading style and instrument type.
Each financial instrument has its own rhythm and oscillation, so if you want to optimize the signals and your trading results, you must learn to tweak the indicator to improve signal generation accuracy. You also need to test different settings of the indicator as this will help you fine-tune the signals. Settings can sometimes be very personal, depending on your trading style and the timeframe used.
How to use:
1. Use on any instrument and timeframe (finetune Settings).
2. When ‘Buy’ signal is confirmed (Green triangle, up ▲) –> enter Long position.
3. When ‘Sell’ signal is confirmed (Red triangle, down ▼) –> exit Long position (or go Short).
4. Exit also when -> trade hits your profit target/limit or stop loss (determined by user).
IMPORTANT: Wait for candlestick close to ensure signal is a confirmed signal!
Exactly how the indicator is used varies from trader to trader. It can be used as a scalping tool in shorter timeframes, but also as a timing indicator for day trading or swing trading strategies, where you get accurate and profitable entry and exit signals for all timeframes.
This indicator has been developed to work with regular bar candles, but we also recommend you to use it with Heikin Ashi candles to filter out as much noise as possible and as these often have an improved ability to capture high-quality trends.
⚠ If you are new to trading and/or technical analysis in general, we always recommend a demo account (“paper-trading”) until you become familiar with how to use the indicator.
Adaptive Delta is a non-repainting indicator (meaning that signals do not change or disappear after bar close).
When using the Alert function, use the “Once Per Bar Close” configuration and wait for bar close to confirm entry/exit signal.
The algorithm script is based on a momentum strategy and depends on an exponential smoothing technique to filter false signals. The adaptive smoothing technique will optimize the fit with the price while having minimal signal delay and is adaptive to the volatility of the underlying instrument.
The Adaptive Delta indicator works very well for all instrument types and timeframes. It can be used for regular long and short entries/positions, as well as for swing trading strategies. You are able to adjust the average calculated true value of the price input: Src, input = (Src1 + Src2)/2
The default settings of the Adaptive Delta indicator are optimized for use on all timeframes. If you use the indicator to trade lower or higher timeframes, you may need to adjust the default settings to optimize it for your trading style and instrument type.
Each financial instrument has its own rhythm and oscillation, so if you want to optimize the signals and your trading results, you must learn to tweak the indicator to improve signal generation accuracy. You also need to test different settings of the indicator as this will help you fine-tune the signals. Settings can sometimes be very personal, depending on your trading style and the timeframe used.
How to use:
1. Use on any instrument and timeframe (finetune Settings).
2. When ‘Buy’ signal is confirmed (Green triangle, up ▲) –> enter Long position.
3. When ‘Sell’ signal is confirmed (Red triangle, down ▼) –> exit Long position (or go Short).
4. Exit also when -> trade hits your profit target/limit or stop loss (determined by user).
IMPORTANT: Wait for candlestick close to ensure signal is a confirmed signal!
Exactly how the indicator is used varies from trader to trader. It can be used as a scalping tool in shorter timeframes, but also as a timing indicator for day trading or swing trading strategies, where you get accurate and profitable entry and exit signals for all timeframes.
This indicator has been developed to work with regular bar candles, but we also recommend you to use it with Heikin Ashi candles to filter out as much noise as possible and as these often have an improved ability to capture high-quality trends.
⚠ If you are new to trading and/or technical analysis in general, we always recommend a demo account (“paper-trading”) until you become familiar with how to use the indicator.
Adaptive Delta is a non-repainting indicator (meaning that signals do not change or disappear after bar close).
When using the Alert function, use the “Once Per Bar Close” configuration and wait for bar close to confirm entry/exit signal.