SUPERALGOS GOVERNANCE
Data Mining Team’s Proof of Value March 2023
Aggregating the way to the future!
This month’s contributions by quantum8 comes in the form of a new data mine; Aggregated. The theme of this mine is “aggregation”; where many indicators are fused together to create something greater than its sum.
This mine starts off with three indicators:
- Trend Meter
- Donchian Trend Ribbon
- PPO Aggregate
Trend Meter
This indicator calculates the output of an MACD crossover, two different length RSI, and two Moving Average crosses to produce a consensus output. The idea of this indicator is to provide some entry signals when all (or most, depending on the trader’s choice) agree on the trend direction.
Donchian Trend Ribbon
This indicator uses Donchian channels of ten different lengths to create a trend consensus. This indicator is similar in result to the famous EMA based Guppy indicator.
PPO Aggregate
This indicator contains five distinct indicators that can work well together; Price Percentage Oscillator (PPO), Center of Gravity (CoG), RSI, CCI, and the mean slope of price action.
It may seem chaotic at first but becomes easier to read once you know what the components are!
The grey line is the result of taking the linear regression of the average of the RSI, CCI, CoG and the Mean Slope (the mean value of the absolute value of the slope of the price action).
The shaded lines is the result of calculating the difference between the PPO of two different lengths, and smoothing them with a Weighted Moving Average (WMA) to produce an oscillator.
The histogram depicts the result of the grey line when it reaches certain threshold areas; lime when below 0.2, green when between 0.2 and 0.3, orange when between 0.7 and 0.8, and red when above 0.8.
In this way the aggregated oscillator can be used in a similar manner as overbought and oversold zones of the RSI.
End Notes
With many more indicators in the pipeline, stay tuned for future updates in the area. As always, if you would like an indicator that’s not already in Superalgos, come chat with us in the telegram or discord groups.
