alGROWithm v1.2 Updates
Happy New Year!
We've just released an exciting update to the alGROWithm indicator that includes the following new features:
- Trend Cloud
- Manual Sensitivity Setting
The new Trend Cloud is an extremely useful way to understand the general trend of the underlying asset at a quick glance. A green cloud means it's in an uptrend, and a red cloud means it's in a downtrend. The width of the cloud gives you information about strength of the trend (wide = strong).
There are 2 ways to use the Trend Cloud:
Confirmation of Buy/Short signals
When a Buy signal is shown and price is above the cloud, you can consider the signal a "Strong Buy." Similarly, when a Buy signal is shown and price is below the cloud, one potential strategy is to wait for price to break through the cloud, and buy when price is above the cloud.
Identifying ranging markets
A ranging market is when buyers and sellers seem to agree on a fair value price range, causing the asset to "chop around" or "move sideways" in a very tight area. This is sometimes a leading indicator of a big move in one direction or another, but these environments are extremely difficult to trade in. Trend Cloud characteristics during a ranging market are thin width and/or multiple crossovers/unders (green to red, red to green).
Note: You can hide the Trend Cloud if you wish through the indicator settings.
Manual Sensitivity Setting
alGROWithm now allows you to set your own sensitivity settings.
Lower number = tighter exit/stop loss levels and more signals
Higher number = more lenient exit/stop loss levels and less signals
Play around with the settings and do some back-testing on different timeframes to see which settings work for you. We prefer a setting of 20 or 25.
Have a great week of trading!
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