AIO Indicator — How to use Direction Box
I would like to explain in detail about function Direction Box of my All In One Price Action Indicator (TradingView) & give an example of how I use it to trade.
DIRECTION BOX
It is just a simple lookback function that shows the range from the latest bar back to the past xx trading bars, with the following settings:
Box size: the default value is 60
Showing midlines (2 dashed lines)
Showing lines connecting highs or lows,
The default pivot lookback value is 4
You also can choose to use close price or high/low priceColor of the box/lines
Personally, I use a direction box to easily detect divergence between with another symbol (ex: DXY,…)or another indicator (RSI,…). I also have [Symbol as Indicator] to show DXY/another symbol as an indicator that displays below the chart. I give it for free to users who have purchased my AIO Indicator.
It’s very useful for those who want to display a sub-symbol as a chart that synchronized with the main symbol when moving the cursor or moving the chart, or for free users of TradingView that cannot display ≥2 charts in one window. I will explain this indicator in a specific article later.
The indicator has an option to show lines between lows and lines between highs inside the box if you want to use it to detect divergence. Personally, I want to detect by my eyes rather than using these lines because pivot highs/lows do not always satisfy me. You might be questioning why I did not code divergence detection automatically as other people do, TradingView also has its [Divergence Indicator] too, but in my experience using them, the result is not good & always “late”. If you actively detect it with your eyes, the result is usually better.
I think this still has room for improvement, please let me know if you have any suggestions
Another example of how I use High/Low connecting lines to detect divergence between S&P 500 and NASDAQ 100.
Please read the full article about my AIO — All In One Price Action Indicator below for more information & other functions of my indicator.
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Nguyen Tran