I have been hard at work the past week working on not only updates for Coin Logic and building the new LogicSWAP DEX, but I have also been making some awesome updates to the Logical Trading Indicator PRO, which is my custom built Pinescript indicator for TradingView! So I wanted to share these updates with my Hive and Inleo family first!
This indicator is packed full of analytic tools to help you gain some major edge in the markets with buy and sell signals, take profit signals, color changing moving averages, bollinger bands, momentum indicators, order blocks, and now a price forecast feature!
How The Price Forecast Works
This forecast feature takes a range of data and gives a price moment forecast based on a linear regression and cumulative sum of the previous data. The evaluation window (gray area) represents the historical data used for forecasting. The reference window (orange area) shows the range of data used as a reference for comparison. The correlation window (green area) indicates the period of highest similarity or dissimilarity with the reference window. These areas provide context for the forecast line.
You can set the mode for forecasting to a 'Similar' or 'Dissimilar' mode. The "Similar" mode focuses on finding patterns that closely resemble the current market environment to forecast future price movements, while the "Dissimilar" mode identifies periods of divergence to anticipate potential changes in price trends. These modes provide traders with tools to analyze historical data and make informed decisions about future market movements.
In the settings you can change the styling options for the forecast line and the Forecast Evaluation area as well as change the length of bars ahead you want to see. There is a minimum of 10 bars and a maximum of 50 bars ahead that you can get a price forecast.
By default the evaluation window is turned off so that all you see is the forecast line. If you want to see the evaluation window, you can go and turn that on in the settings.
This new feature can give you a great idea on where the price may be heading so that you can get an edge on the market and hit those winning trades! Of course, as with anything in the financial markets, none of this is 100% accurate, and will adjust as time goes on and as the price action changes.
I do want to note that the original price forecast indicator was taken from the LuxAlgo ECHO forecast indicator, which is an open source community script on Tradingview. I made quite a few changes to get it to tie into the Logical Trading Indicator's existing code, as well as simplifying some of the options that were really unnecessary for use and made things a bit confusing. But, I wanted to give credit where credit is due.
Other Notable Updates
A few other things that were updated that are notable are the default changes for the ATR settings. The default has been changed from 2:5 to 3:6 as it is dialed in for the 1 hour time frame and above. This came from me actually creating an automated strategy for backtesting and got some of the best results with these settings. Of course you will want to adjust for your chosen time frame and your strategy to get the best results possible for your buy and sell signals.
Another change was in the user settings where each of the items that have fill areas such as the long period moving average, order blocks, and the new price forecast evaluation window all have their own color options instead of just one big global fill option. This can allow you to customize the look and feel of it as you wish.
I am working on a few more things before this version goes live as I am going put it out with the launch new Logical Trader's Club on Coin Logic in which members will be able to get access to the code, updates, and support for the Logical Trading Indicator PRO! I will be doing a whole separate post about this when all those details are nailed down! I am really excited about these updates and just wanted to share them with you.
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Additional Blog Locations
Many of my cryptocurrency related articles as well as trading articles can also be found on my crypto research site, Coin Logic.
I also post trading chart ideas on my TradingView Profile.
Disclaimer:
The information in this trade journal is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.
