Chart with trend(MACD), momentum(DMI), and market strength(OBV)
2024-10-15


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BW+ indicator is an indicator that comprehensively evaluates MACD, DMI, and OBV indicators.

Therefore, knowledge of MACD, DMI, and OBV indicators is required.

I added the existing HA-Low and HA-High indicators to express the section to start trading more clearly.

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The indicators have changed and been supplemented a lot over the past 6 years of using TradingView.

It was not easy to express my trading method as an indicator.

Because of this, I think there are people who unintentionally interpret my writing differently from what I think.

So, to narrow this gap, I am explaining the indicators used in my article.

Since these indicators are automatically generated by a formula, no one can change them.

Therefore, I think anyone can look at the chart and interpret it from the same perspective.

However, there may be differences in interpretation depending on one's investment style or average purchase price.

However, since everyone talks about the same point, there will be no confusion.

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When talking to each other in the community, if you talk with the chart tool you drew, you may talk differently and there may be room for misunderstanding.

So, I think the conversation often goes in a strange direction because the conversation ends up talking about whether it is LONG or SHORT right now.

I think that charts drawn with chart tools are not very meaningful because they only show a part of the person's thoughts through chart analysis.

This is because they do not tell you the selection point using the chart tool, so interpretation or understanding is lacking.

Therefore, you cannot apply such content to your own chart.

So, since it can't be used as a trading strategy, I can't help but just say, "Oh, that could be possible."

However, if there is a chart that everyone can see and no one can change, I think it would be easier to talk and reflect each other's thoughts on my trading strategy.

I think that because of that, I can find out what I lacked and supplement it.

Not everyone sees the same thing and thinks the same, but if the basic point of the thought is the same, I think it can help me make other people's thoughts my own.

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Anyway, I hope that this chart change will help you create a clearer analysis or trading strategy.

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The MACD indicator added to the chart is an indicator with a modified formula from the existing MACD indicator, but the interpretation method is the same.

That is,
- If MACD > Signal, it is interpreted as an upward trend,
- If MACD < Signal, it is interpreted as a downward trend.

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The DMI indicator added to the chart simplifies the interpretation of the existing D+, D- indicators by expressing them as lines on the ADX line.

That is,
- The section expressed in Aqua color means a downward section,
- The section expressed in Orange means an upward section.

- When ADX is above 25, it means that the strength of the upward or downward movement is strong,
- When it is below 25, it means that there is a high possibility of forming a box section or sideways section.

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The OBV indicator added to the chart means an upward trend when each line is broken upward, and a downward trend when it is broken downward.

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The indicator that expresses the contents explained above is the BW v1.0 indicator.

In order to see this more intuitively, the BW (100), BW (0), and Mid (50) indicators were added so that they can be expressed in the price candle section.

In addition, there are also High (80 Down), Low (20 Up) indicators.

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It is never easy to interpret each indicator and evaluate it comprehensively.

It is especially difficult when trading in real time.

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When interpreting the BW v1.0 indicator, it is basically divided into rising and falling based on the 50 point.

Therefore, passing the 50 point increases the possibility of a significant change in the trend.

Therefore, it seems that trading can be done based on whether there is support near the Mid (50) line generated when the BW indicator passes the 50 point, but this is not the case.

The reason is that volatility is likely to occur when a change in trend occurs.

When volatility occurs, your trading point will go up and down, so psychological pressure will increase and you may proceed with an inappropriate trade.

Therefore, a good point to start trading is the BW (0), BW (100) or HA-Low, HA-High point.

Since these indicators are generated at the boundary of the low or high point range, if you start trading based on whether there is support, you are more likely to get good results.
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In any case, you should think in line with your average purchase price.

Otherwise, if you trade incorrectly due to psychological pressure when you get close to the average purchase price, you may end up with little profit or even a loss.

This means that when you start a new trade, it is better to start near the BW (0), BW (100), HA-Low, and HA-High indicators as mentioned above.

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Have a good time.
Thank you.

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