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Recently someone asked about the indicators used on Quote.com charts. Not
sure if they were referring to the Gagnon and KOD. Here is a description of
them and an attempt at ela coding. Not having actually seen the indicators
plotted in Q charts, I am not sure if this ela code is even close. Their
KOD description I believe is wrong but I think I know what they are trying
to do so will keep working on it. Attached is a chart of MSFT with the GIDX
indicator on 5 minute charts up to date as of this morning.
{GIDX indicator}
Inputs: Topen(945), Tclose(1300);
Vars: GIDX(0);
If Time<Topen or Time>Tclose then DIDX=0
else
GIDX = 100*((absvalue(OpenD(0) - HighD(0))/OpenD(0)) -
(absvalue(OpenD(0)-LowD(0))/OpenD(0)));
BobR
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New Trading Indicators
Gagnon Index - GIDX
The Gagnon Index is an indicator used to measure the strength of a market
trend at any given time during market hours. It is automatically reset at
the open of every trading day. Note that this indicator provides the most
effective results if used 15 minutes after of the opening of the market.
Calculation
( ( |Open - High| / Open) - ( |Open - Low| / Open) ) * 100
The calculated number of the Gagnon Index (GIDX) can also be sorted by left
clicking on the field. The sorted result lists all financial instrument from
the strongest up trend to the strongest down trend or vice versa base on the
positive (green) or negative (red) value of the indicator.
Index Interpretation
Green GIDX Up Trend
Red GIDX Down Trend
White GIDX Neutral
Key of the Day Index - KOD
The Key of the Day Index is an indicator (similar to the Gagnon Index) used
to measure the strength of a market trend at any given time during market
hours. It is automatically reset at the open of every trading day. Note that
this indicator provides the most effective results if used 15 minutes after
of the opening of the market.
Calculation
( Open + High + Low ) / 3
The calculated number of the Key of the Day (KOD) can also be sorted by left
clicking on the field. The sorted result lists all financial instrument from
the strongest up trend to the strongest down trend or vice versa base on the
positive (green) or negative (red) value of the indicator. Note that this
feature should be used in tandem with the Gagnon Index (GIDX) to confirm
strength of a trend.
Index Interpretation
Green KOD Up Trend
Red KOD Down Trend
White KOD Neutral
GIDX-KOD Combination Indicator
This indicator is a simple combination of the Gagnon Index (GIDX) and the
Key of the Day Index (KOD). It is automatically reset at the open of every
trading day. Note that this indicator provides the most effective results if
used 15 minutes after of the opening of the market.
Calculation
GIDX + KOD
The calculated number is actually the sum of the calculated GIDX and
calculated KOD, and can be sorted by left clicking on the field. The sorted
results would basically list all financial instrument from the strongest up
trend to the strongest down trend or vice versa base on the positive (green)
or negative (red) value of the GIDX-KOD indicator. This indicator can be
used as a confirmation of strength for an up trend or downtrend move based
on the GIDX and KOD Indicators.
Index Interpretation Combination Interpretation
Green GIDX-KOD Up Trend equivalent to Green GIDX & Green KOD Up Trend
White GIDX-KOD Neutral equivalent to Green GIDX & Red KOD Neutral
White GIDX-KOD Neutral equivalent to Red GIDX & Green KOD Neutral
Red GIDX-KOD Down Trend equivalent to Red GIDX & Red KOD Down Trend
Important note for traders using these indicators - the opening price will
be, 80% of the time, trading very closely to either the high or the low of
the day. When a "NEUTRAL" condition occurs, the market trend can't be
confirmed. If a trade is executed in these conditions, the probabilities
might not be in the favor of the trade using these indicators.
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