[blackcat] L3 Swing Whale Catcher

24 sept 2022

Level 3
Background

Whale catcher is a resonance indicator combining both customized MACD and customized KDJ. It use two resonance bands to identify oppotunities of middle-short term.

Function

When we use MACD and KDJ alone, in the trend market, the prices are arranged in the order of the moving average, and the operation is simple and the profit space is large. The MACD and KDJ diverge from reality and can be a good catch of trend reversal tops and bottoms. The disadvantage of this system is also very serious. In the volatile market, the moving average fails, and the false divergence of MACD and KDJ has become a contrarian operation. Everyone should know the degree of danger of contrarian operations in a unilateral market.

Therefore, this indicator can confirm each other by improving the performance of the separate MACD and KDJ and combining the two in one main chart. When the two resonate, a more reliable signal can be prompted.



In order to adapt to different time periods, I designed a look-up table (LUT) that automatically assigns parameters according to the icon period. It can make this indicator more stable over different time periods.



The green and purple ribbons are the trend lines of the customized version of MACD, and the red and blue ribbons are the trend lines of the customized version of KDJ. In most cases, the two trends are different, but obviously KDJ is more sensitive than MACD and is suitable for judging entry and exit points. MACD is more likely to see large-scale trends. When the two are combined, the judgment can be strengthened. For example, use the logical AND operation to combine the two.



Finally, except for the two fast and slow line combinations of MACD and KDJ. I also plot the difference column of the two. Because the performance of the two sub-levels represented by the difference bar is more conducive to obtaining the information of the trend reversal in advance. The dark green above zero and the dark red below zero are the differential columns of KDJ. Four-color difference offline is the difference column of MACD. In this way, it is not easy to be confused by the graphic expression, I hope you like it.



Remarks

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