CFGMO Indicator for Amibroker (AFL)

niladri

almost 4 years ago

Amibroker (AFL)

Ref: https://player.vimeo.com/video/511293954 ( 15min onwards )

This indicator will warn when RSI is failing to detect market reversals.

- Point A: The CFG MO shows a positive reversal when RSI is not. Also note that the MO turns about on the slower moving average which signifies support. The averages are also showing positive spread. Both the latter clarifies the reversal signal. Also note that IF support had been at a point where the averages had crossed and the faster on the way up, this would be a strong continuation signal.

- Point B: The CFG MO shows divergence when RSI does not. Again note the turning point in CFG MO with the fast moving average as resistance.

- Point C: As in point B the turning point is with resistance of the faster moving average.

- Note that this is in a 60min chart and these relatively clear signals would not necessarily show up in other time frames. For example at a reversal in the 60min chart the MO would not show any MA signals, but in 4hours it could give a strong reversal or divergence signal straight on a MA-crossing.

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Additional decision guidelines:

Sell when MO line cross the first smooth line (from up to down or the first smooth line must be over the second smooth line) with an option of confirmation when the MO cross the second smooth line, and when the first smooth line cross the second smooth line.

Buy when MO line cross the first smooth line (from down to up or the first smooth line must be below the second smooth line) with an option of confirmation when the MO cross the second smooth line and when the first smooth line cross the second smooth line.

Screenshots

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