We’re pleased to release 0x Index. This indicator is based on 7 separate indicators, which combine to make a weighted index of momentum. In addition, the signal is filtered with constant with a super-smoother.
Said simply, this indicator is made to help spot STRONG divergences in price momentum in accordance with 7 separate indicators in one chart pane.
- Time Correlation Ratio
- Commodity Channel Index Ratio
- RSI Ratio
- Klinger Volume Oscillator Ratio
- Money Flow Index Ratio
- Fisher Transform Efficiency Ratio
- Standard Deviation Ratio
- Primary Trend line — weighted index line of statistically relevant cross levels for each above indicator.
- Trend Line Signal line — lagging Primary Trend line average to denote strength of trend, and provide crossover signals
- Trend Line / Signal line MACD — similar to MACD in that this histogram tracks the delta between the Trend line and the signal line. Indicating strength of the trend relative to the lagging nature of the signal line.
- Background Color 1 — Provides secondary momentum coloring for trend to provide visual confluence with trend behavior.
- Background Color 2 — Provides additional momentum coloring for trend to provide enhanced visual confluence with trend behavior.
- This indicator is primarily used as a divergence detector. When price top or price bottom is observed with a non-conforming top/bottom presented by the indicator a divergence can be assumed which indicates a change in trend.
- This indicator can also be used as a pure , where pulses up or pulses down will denote price change. As an added benefit when trend are topping/bottoming out, the indicator will present a straight line (indicated by the color “white”) which is a good time to take profit.
- Divergences can be spotted on any time frame, and (currently) require manual drawing. Feature support to add auto divergence painting if possible given backtesting results.