PROTECTED SOURCE SCRIPT
Output7
The "Output7" indicator is designed to guide traders in identifying potential buy and sell signals. This is achieved through the calculation of a custom indicator named `output7` and its derived moving averages. `output7` is defined as `c_1 - c_20 * (ohlcSq / hlSq)`. Here, `ohlcSq` stands for the square of the average of open, high, low, and close prices, while `hlSq` signifies the square of the average of high and low prices. `c_20` and `c_1` correspond to the closing price 20 periods ago and the current closing price, respectively.
**Interpreting the Indicator:**
**1. Support and Resistance**: This indicator calculates the support and resistance levels for the `output7` over a predefined lookback period. These levels are essential in the identification of potential price reversals in the market. When the `output7` line approaches or crosses these levels, it may suggest significant market shifts.
**2. Moving Averages of `output7`**: The indicator also generates short-term (5 periods by default) and long-term (10 periods by default) simple moving averages (SMAs) of the `output7` value. These SMAs can be helpful in determining market trends. When the short-term SMA lies above the long-term SMA, it indicates an upward trend. Conversely, when it falls below, it suggests a downward trend.
**3. Buy and Sell Signals**: The Output7 indicator generates two types of buy and sell signals based on the crossover of different moving averages. Yellow signals are produced when the simple moving average of close prices (7 periods by default) crosses the exponential moving average of close prices (14 periods by default). The blue signals are generated when the short-term SMA of `output7` crosses the long-term SMA of `output7`.
It is important to note that like all technical analysis tools, the Output7 indicator should not be used in isolation. Instead, it should be combined with other forms of analysis and indicators to validate its signals and minimize the likelihood of false signals. Factors such as the overall market trend, price patterns, volume, and fundamental analysis can provide additional context to the signals provided by the Output7 indicator. The interpretation of these signals should align with a trader's overall trading strategy, risk tolerance, and financial goals.
And finally. If you discover something else regarding this indicator. Please let me know in the comment section.
**Interpreting the Indicator:**
**1. Support and Resistance**: This indicator calculates the support and resistance levels for the `output7` over a predefined lookback period. These levels are essential in the identification of potential price reversals in the market. When the `output7` line approaches or crosses these levels, it may suggest significant market shifts.
**2. Moving Averages of `output7`**: The indicator also generates short-term (5 periods by default) and long-term (10 periods by default) simple moving averages (SMAs) of the `output7` value. These SMAs can be helpful in determining market trends. When the short-term SMA lies above the long-term SMA, it indicates an upward trend. Conversely, when it falls below, it suggests a downward trend.
**3. Buy and Sell Signals**: The Output7 indicator generates two types of buy and sell signals based on the crossover of different moving averages. Yellow signals are produced when the simple moving average of close prices (7 periods by default) crosses the exponential moving average of close prices (14 periods by default). The blue signals are generated when the short-term SMA of `output7` crosses the long-term SMA of `output7`.
It is important to note that like all technical analysis tools, the Output7 indicator should not be used in isolation. Instead, it should be combined with other forms of analysis and indicators to validate its signals and minimize the likelihood of false signals. Factors such as the overall market trend, price patterns, volume, and fundamental analysis can provide additional context to the signals provided by the Output7 indicator. The interpretation of these signals should align with a trader's overall trading strategy, risk tolerance, and financial goals.
And finally. If you discover something else regarding this indicator. Please let me know in the comment section.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.