Confirmation (Expo) is a trading confirmation tool that can confirm any indicator, trend, setup, signal, or strategy. Once you have chosen the input source (any indicator) you can use the tool to confirm the trend, trend strength, overbought/oversold areas, retracements, and reversals.
Setting Panel Explained
- Confirmation (Expo)
After you have read about how the settings works, please check out the example settings at the end.
1.0 General Settings
- Input Source: This a key setting for the indicator. It allows you to choose which indicator you want to use. As standard, the source is “Close” which means that all calculations are based on Close, hence the output is a confirmation of how Close behaves. You can use Close and still get valuable insights.
The idea is that you can use any indicator, for instance, RSI, MACD, Averages, Trailing stop, Trend Stability, Obv, Trend Analysis, Breakout-Trend-Scalping, Trend Oscillator, be creative! !!You have to apply the other indicator to the chart in order to be able to choose it as an Input!!
The output is a confirmation of the input.
Important! You have to adjust the settings after you have chosen the input source. Example: If you chose the Trend Stability Line as an Input source you will notice that nothing is displayed, this has to do with that the Trend Length value is too low and you have to increase it to at least 40.
Lesson learned: Depending on the input source, different Trend Length has to be used!
Trend Length: In general, Low value means ShorTerm (faster confirmation line) and High value means LongTerm (Slower confirmation line). Remember that the trend length has to be adjusted according to the input source used.
1.1 Smooth Settings
Smoothness?: [True/False] – Enable smooth or Disable smooth calculations.
If you use Close as the Input source, we recommend enabling Smoothness since you get less choppy movements. However, Other input sources might perform better without the smoothness, you have to find what works for the source you have chosen.
Set Smoothness: Low value, less smoothness, and faster confirmation line (ShortTerm). High value more smoothness and slower confirmation line (LongTerm).
1.2. Overbought/Oversold Settings
Overbought/Oversold: Set the Overbought/Oversold values.
If you use a Magnify value above 20 – the Overbought/Oversold value can be increased in order to show the trend.
Magnify Overbought/Oversold: – This setting is important in most cases!
This setting adjusts how you want to display strong trends or extreme overbought/oversold.
The value 2 (minimum value) means that the confirmation line oscillates between overbought and oversold. It does not give insights about how “much” overbought or oversold we are.
All other values above 2 (in most cases) will determine how “much” you allow the indicator to display overbought/oversold (I see it as a strong trend).
So for instance, if we use the maximum value 50, the indicator does now oscillate between 50 and – 50 where the value 50 indicating a strong trend (or extreme overbought/oversold) See the example graph below.
Important! Some input sources cannot display Strong trends no matter how high you set the Magnifying value. It depends on that the input source itself has an upper/lower limit.
3.0 Super Advanced Settings
These settings tweak the calculations and can be used in some circumstances. This setting is used for specific strategies and should otherwise be left as default. Feel free to play around with the settings.
- Below you find some example settings
#1 Average 9 (SMA) as Input
#2 RSI as Input
#3 MACD as Input
#4 Close as Input
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