Trading indicators can be clustered into five distinct categories
- Market Sentiment (Trend or Mean Reverse)
- Price Action
For each of the mentioned categories dize has developed one or more proprietary indicators. Combining those indicators and looking at the market from different perspectives can lead us to find interesting trading setups. Let's have a closer look.
dize Market Sentiment (Trend)
The Market Sentiment indicator is a trend-following indicator. It visually divides our chart into three phases that are familiar to every trader - uptrend, downtrend and sideways movement. The visualization allows us to determine very quickly which phase is currently active. The indicator generates buy and sell signals for trend changes, which can be precisely matched to the asset using various filters. The "Lookback"-parameter indicates how many candlesticks are considered for trend development. The "Sensitivity" parameter indicates how much noise we allow in the trend calculation.
dize Support and Resistance (Price Action)
The Support and Resistance indicator calculates support and resistance zones based on our proprietary algorithm. It is a "Price Action" indicator where the market behavior is decisive. You can choose between 3 modes for the calculation of the respective zones - pivots, closing prices or average prices. Only for the "pivot" mode the parameter "Pivot Left Bars" and "Pivot Right Bars" will be relevant.
For the other two modes those parameter won't come into effect.
Furthermore, the "Number of data points"-parameter can be used to specify how far the indicator should look into the history for calculating the zones. Our calculation method is unique and therefore so powerful. Due to a continuous calculation, the indicator always shows the zones accurately, so that the zones have a great significance.
In addition to the settings for the calculation, there are also settings that affect the visualization. The display can be changed using the "Show Level" checkbox. Based on the positioning of the closing price to the respective support or resistance zone, the indicator colors the zone using the colors specified in the settings.
dize Tops and Bottoms (Momentum)
The "Tops and Bottoms" indicator is a momentum indicator that gives us clues as to when a market might turn around or how intact the current trend is. When calculating, we use statistical methods that provide us with indications of abnormal market behavior.
The indicator has two calculation parameters. The "Looback" parameter specifies how many candles are considered in the calculation. The "Deviation" parameter, on the other hand, acts as a threshold to detect abnormal market behavior.
Furthermore, the appearance of the indicator can be changed using the selected colors.
dize Clouds (Trend)
The "Cloud" indicator combines five different types of moving averages to assess the strength of a trend. Depending on the price and average positioning, a cloud is generated, which changes color according to the trend strength. Different types of moving averages can be selected via the settings and changed using length parameters. Hence, the "Cloud" indicator can be adjusted accordingly for each market.
dize Power Index (Volatility)
The "Power Index" indicator is our approach to measuring the volatility of an asset. The indicator has a "Sensitivity" parameter that specifies how many historic candles should be looked at when calculating. The graph is a cloud colored according to historical volatility. This makes it possible to estimate at a glance how much risk and volatility currently prevail in the market.
The "Power Index" is part of our holistic approach to identifying trading setups. It should always be used in conjunction with the other dize indicators.