The chart shows a short term indicator derived from daily price action. It can be used alone or as the foundation for a RSI, Stochastic, or even a long term chart such as a 55 day sum of the indicator.
The chart posted here shows a couple of applications of the daily indicator to create more familiar indicators.
"Go Carl! Go!" Gone! If ANYONE would like the formula for the Daily Trend Indicator, contact me at aol.com.
What makes it different from other indicators? Why it is so choppy? What happens when you apply it to more volatile stocks or use it in more volatile market? Why there are secrets and somebody needs to contact you to see the formula? Show the formula and less us judge whether the principles put behind the formula make sense...
I posted originally in Aug, and you are the first to ask for the formula ... in a technical Forum! (close - 3 day high) + (close - 3 day low). If you want something smoother, use a higher number.
Basically, you are checking the location of the close price in relation to the 3-day highest high and 3-day lowest low. Stochastics does the job but in more convenient form. If you do not want to smooth you may use Raw Stochastics. CLV (Close Location Value) is a another indicator that tracks the same and oscillates around zero CLV = (((Close - Low) - (High - Close)) / (High - Low) I guess, visually you prefer your way.
If you are willing I can code this for you to try. Or work on experimenting with different indicators. Here is some work I can do http://www.turtrades.com my contact info is on the page. I can code custom indicators chart it etc.