Hooray! A new John indicator!
John claims this indicator is lag-less and uses the SPY on the Daily as an example.
He states that drawing a line from peak to peak (or trough to trough) will correspond perfectly with the Asset.
I have to say I agree! There is typically one bar of lag or no lag at all!
I believe this indicator can be used for either entries or exits, but not both.
1. Entering Long positions at the low points (Stocks and ETFs)
2. Entering Long when the Reflex crosses above the zero lines (Stocks, ETFs, )
1. Exiting Long positions at a new high point (Stocks and ETFs)
2. Exiting Long when the Reflex crosses below the zero lines (Stocks, ETFs, )
In this example, I place a Long order on the SPY every time the Reflex crosses above the zero level and exit when it crosses below or pops my stop loss, set at 1.5 * Daily ATR.
For me, that's good enough to create a strategy and backtest on several Indices and ETFs, which is what I have a hunch this will work on.
I think there is a lot of promise from a single Indicator!
Let me know in the comment section if you're able to use this in a strategy.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
I've also changed the plot to "Area" and I like it much more.
I agree the area looks better than a single line. It just needed a little love :)
I won't be making overlay=true version public, but I can send you the code if you'd like.