New generation TradingView indicators exclusively built for the members of the Dojo
The markethammer indicator suite has been a project of passion for the last few years with many iterations of tools that have changed and improved over time. Using several weighted metrics and entirely written in PineScript 4.0, these indicators have no equal when it comes to helping you navigate the murky waters of technical analysis.
The suite comes with 3 indicators: Trendfinder, Trend Weight Indicator and the Q-Momentum Indicator. While each tool was built to help understand the current price action, they don't pretend to be signal generators and should instead be used to help validate or invalidate bias in your overall analysis.
We will start with the first tool, the Trendfinder - a pretty easy way to see trend changes and flips on any timeframe.
The Trendfinder is by far the most popular tool and the oldest in our set. It's a weighed ribbon that uses not only price but several other metrics to try and display trend reversals.
There are several strategies to use this and it will greatly depend on the kind of trader you are. Whatever the kind of trader you are, risk management is still the most important factor - more than timing, more than position size and definitely more than the project fundamentals.
Where this indicator is concerned, if you are more aggressive and risk-prone, you are looking at the valleys and peaks for 3-candle reversal patterns. A nice bull run followed by a flattening top and 2 more downward values and you are looking for shorts. A bear trend followed by a flattening bottom and two more upward values and you start looking for longs.
If you are more passive or risk-averse, you will be looking for more confirmation to the candle just before a ribbon flip (3 candles decreasing the ribbon until right before a flip). These trades are much less exciting, yield less profit and happen more rarely but the tradeoff is a better risk profile.
I'm certain you noticed two other indicators that were hidden... Those are the two others I will be covering in my next article(s).