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ICWRA VertexFX Indicator


Guest VinuJohn

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Guest VinuJohn

ICRWa

ICWRa indicator is a VertexFx indicator that provides precise BUY and SELL signals by identifying market cycles using trends.

 

When the price moves in well-defined cycles, the trending indicators like Commodity Channel Index (CCI) and Average True Range (ATR) are useful in identifying trading spots where entry and exit signals can be taken. During sideways markets and whipsaws, these indicators can be tuned to avoid trades, or to exit losing trades quickly. The ICWRa indicator employs this strategy.

 

In the first step, we calculate the Commodity Channel Index (CCI) over the recent 50 bars.

In the second step, we calculate the Average True Range (ATR) values over the recent 5 bars.

In the third step, we calculate the standard deviation of the CCI and ATR over the recent 50 bars to identify the trading triggers.

When all the three components are rising, a BUY signal is generated by the indicator. Similarly, when all the three components are falling, a SELL signal is generated by the indicator.

 

This indicator can be used with another trend following indicators for confirmation of the signals.

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