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Well I don?t know about randomly.
This Indicator seems to uncover underlying trend structure.
It uses the Random Walk Index.
See the attachment.
Regds
Gerard
// Walking the (Random) Walk
/* This Indicator was developed to signal Short-Term trend changes in
the direction of the CONFIRMED MediumTerm trend, thereby giving both
long and short opportunities.
Interpretation:
The red histogram plots the CONFIRMED MT trend, as being up (>zero), or
being down (<zero).
The black line plots the ST trend in the same manner.
A long entry is signalled when the red MT Histogram is >zero and
the black ST line, after dipping below the zero line, reverses back
up.(green arrow)
Likewise, the Short entry is signalled when the red MT Histogram is <
zero and the black ST line, after rising above the zero line, reverses
back down.(red arrow)*/
If your position size strategy involves scaling in and out, I would
suggest that in addition to the initial entry points, others should be
considered at the zero line cross or at the break of a trendline drawn
on the actual black ST line.
/* Note how the trend changes, in both time frames, correlate to trend
line breaks drawn on the price chart.
I draw trendlines for both time frames on the price chart, then I fiddle
with the parameters until I get a best fit.
NB. EXITS ARE NOT SIGNALLED.
You could sort out a strategy for trading the medium term trend, ie,
when the red histogram crosses zero in either direction, but that?s not
the original intention here.
As usual I would suggest this indicator is for use ONLY on less volatile
trading instruments */
// Walking the (Random) Walk
Plot( CA= RWI( 5, 6),"Walking the (Random) Walk",1,4 );
Plot( CB= RWI( 10, 50)," Med-Term",4 );
Plot( CB= RWI( 10, 50),"",4,2+4 );
Plot(0,"",4);
CondA= CB>0 AND (CA<0 OR Ref(CA,-1)<0) AND CA>Ref(CA,-1) AND
Ref(CA,-1)<Ref(CA,-2) ;
PlotShapes( shapeUpArrow*CondA, 5,L,-1.5) ;
CondB= CB<-0 AND (CA>0 OR Ref(CA,-1)>0) AND CA<Ref(CA,-1) AND
Ref(CA,-1)>Ref(CA,-2) ;
PlotShapes( shapeHollowDownArrow*CondB, 4,H,1.25);
Buy= CondA;
Short= CondB;
--
Gerard Carey
gerardncarey at fastmail dot fm
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