Introduction to the Quantguy Indicators!

If I've been doing a good job with my internet marketing (not getting my hopes up), chances are you've come across my indicators in a post on Instagram, Twitter, or Facebook.  This blog post intends to provide an introduction to what these indicators are and how to use them.  At the time of this post, the available indicators fall into three broad categories: momentum, volatility, and cryptocurrency specific indicators.  In particular, we have:

Momentum Indicators

  1. Kovach OBV
  2. Kovach Chande
  3. Kovach Momentum

Volatility

  1. Kovach Reversals

Crypto Indicators

  1. Kovach Spread Indicator
  2. Kovach Altcoin Index

Each indicator has its own particular strengths.  They are designed to compliment each other, and I intend to discuss how to use them in detail in future posts, but here I really just intended to give you an introduction.

Currently, the indicators are written for the Tradingview platform only.  But when I've written them for other trading platforms, users will be able to use them for no additional fee.  Once you've signed up for access, you can select the indicators you'd like and configure the parameters to accommodate what fits your trading style best.  I have a tutorial on how I set these up for my trading style here.  But of course, I encourage you to play around with the settings and find something that works for you.  When you do, please share your results in the comments!

Next, we can discuss a bit about what these indicators do.  We'll start with the momentum indicators.  In general, you can think of the Kovach OBV as 'long term momentum' and the Kovach Chande as 'short/mid term momentum'.  So when the Kovach OBV is strong, but the Kovach Chande dips, it might be a long signal, because it indicates short/mid term momentum has let up, but the overall trend is still intact.  Finally, the Kovach Momentum indicator measures momentum in the very short term.  This indicator is useful for highlighting short term spikes in momentum, which often happen around risk events like data releases, e.g. DOE oil inventories, or at volatile time periods like when the market opens.

The Kovach Reversals indicator measures volatility, but gives the added benefit of combining candlestick reversal patterns, painstakingly hand-coded, to identify when price corrections may occur.  These are represented as green or red triangles.  Green triangles show bullish reversals, and bearish reversals are shown in red.  If you see one, you could use it as a confirmation of a reversal during a ranging period, or a sign of a pullback in a trend.

Here's a tutorial on using the Kovach Momentum indicators with the Reversals indicator.

Finally, we have the crypto specific indicators.  The Altcoin Index summarizes the price action by weighting the top altcoins.  So it provides a picture of what the altcoin market is doing as a whole.  The crypto spread indicator measures the returns BTC provides over altcoins.  Positive values mean BTC is providing more returns, negative values mean that altcoins are in control.  You can find a tutorial on using these indicators here.

In future posts, we'll be discussing these indicators in more detail, and I'll be sharing my trades with you as I make them.  But for now, feel free to experiment with them and find out what works best for you.  If you've had success with them or maybe found a pitfall, please discuss it in the comments section!