OPEN-SOURCE SCRIPT
Diodato 'All Stars Align' Signal
Description:
This indicator is an overlay that plots the "All Stars Align" buy signal from Chris Diodato's 2019 CMT paper, "Making The Most Of Panic." It is designed to identify high-conviction, short-term buying opportunities by requiring a confluence of both price-based momentum and market-internal weakness.
What It Is
This script works entirely in the background, calculating three separate indicators: the 14-day Slow Stochastic, the Short-Term Capitulation Oscillator (STCO), and the 3-DMA of % Declining Issues. It then plots a signal directly on the main price chart only when the specific "All Stars Align" conditions are met.
How to Interpret
A green cross (+) appears below a price bar when a high-conviction buy signal is generated. This signal triggers only when two primary conditions are true:
The 14-day Slow Stochastic is in "oversold" territory (e.g., below 20).
AND at least one of the market internal indicators shows a state of panic:
Either the STCO is oversold (e.g., below 140).
Or the 3-DMA % Declines shows a panic spike (e.g., above 65).
This confluence signifies a potential exhaustion of sellers and can mark an opportune moment to look for entries.
Settings
Trigger Thresholds: You can customize the exact levels that define an "oversold" or "panic" state for each of the three underlying indicators.
Data Sources: Allows toggling the use of "Unchanged" data for the background calculations.
Stochastic Settings: You can adjust the parameters for the Slow Stochastic calculation.
This indicator is an overlay that plots the "All Stars Align" buy signal from Chris Diodato's 2019 CMT paper, "Making The Most Of Panic." It is designed to identify high-conviction, short-term buying opportunities by requiring a confluence of both price-based momentum and market-internal weakness.
What It Is
This script works entirely in the background, calculating three separate indicators: the 14-day Slow Stochastic, the Short-Term Capitulation Oscillator (STCO), and the 3-DMA of % Declining Issues. It then plots a signal directly on the main price chart only when the specific "All Stars Align" conditions are met.
How to Interpret
A green cross (+) appears below a price bar when a high-conviction buy signal is generated. This signal triggers only when two primary conditions are true:
The 14-day Slow Stochastic is in "oversold" territory (e.g., below 20).
AND at least one of the market internal indicators shows a state of panic:
Either the STCO is oversold (e.g., below 140).
Or the 3-DMA % Declines shows a panic spike (e.g., above 65).
This confluence signifies a potential exhaustion of sellers and can mark an opportune moment to look for entries.
Settings
Trigger Thresholds: You can customize the exact levels that define an "oversold" or "panic" state for each of the three underlying indicators.
Data Sources: Allows toggling the use of "Unchanged" data for the background calculations.
Stochastic Settings: You can adjust the parameters for the Slow Stochastic calculation.
オープンソーススクリプト
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免責事項
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オープンソーススクリプト
TradingViewの精神に則り、このスクリプトの作者はコードをオープンソースとして公開してくれました。トレーダーが内容を確認・検証できるようにという配慮です。作者に拍手を送りましょう！無料で利用できますが、コードの再公開はハウスルールに従う必要があります。
免責事項
この情報および投稿は、TradingViewが提供または推奨する金融、投資、トレード、その他のアドバイスや推奨を意図するものではなく、それらを構成するものでもありません。詳細は利用規約をご覧ください。