Hello everyone, and welcome to another software update from the engineering team at TrendSpider. In this update, we are releasing four new indicators!
In this update, we introduce several new indicators, including some that are experimental in nature. Details of each new indicator are listed below.
The MACD volume indicator is almost identical to the traditional MACD indicator, except that instead of measuring changes in price, it measures changes in volume over time. This indicator consists of three aspects: the MACD line itself, the signal line, and the histogram. It can be used in the same way as a traditional MACD indicator, to identify overbought and oversold areas, to gauge momentum and identify divergences.
Just like the traditional MACD, the Volume MACD indicator has three user-defined inputs that can be adjusted: the length of a fast moving average, the length of a slow moving average, and the length of a signal. The default values are 12, 26, and 9.
R-squared linear regression
The R-Squared linear regression indicator is a statistical regression model that measures the variance between a dependent variable and an independent variable. In trading, this is calculated using the relationship between price and time. It abstracts motion and linear regression of motion. When the price and R-squared value move together, it indicates a stronger trend. This indicator can be used similarly to a momentum oscillator, which helps to identify divergences as well as the strength of a trend.
The Linear Regression R-Squared indicator has only one user input: the length. The default for this variable is 14.
Donchian adaptive channels
Adaptive Donchian is a remake of the old classic movie. Donchian Channels are a type of price action indicator that measures price range. The upper Donchian line is always above the price action while the lower one is always below it. There is no way for these lines to be within the price action, they are always on the edges. However, when the traditional Donchian Channel indicator adjusts based on time factor alone (for example, after passing X candles after a price change, the upper and lower bands will reset to the latest price level), then the adaptive variable of this indicator only adjusts to the lower level when The upper level is adjusted by price and vice versa. This creates a new way of scaling ranges where the range is not reset until a portion of it is ‘paid’ to reset by rate.
The Adaptive Donchian Channel indicator has one user-controlled variable input: length. The default setting is 20.
geometric moving average
A geometric moving average is similar to a traditional moving average but instead of calculating a moving average, it calculates the level of a geometric mean. In mathematics, this means that instead of adding the values together and averaging them, GMA multiplies the time series and then takes the product root N for the last result. This provides a very responsive moving average that dynamically adapts to the price and closely follows the price. It can be used in the same way as any other moving average.
GMA has only one input parameter that the user can control: length. The default value is 10.
We hope you enjoy using these new indicators and we look forward to adding more to the platform soon!