Recession Risk Index

[Apprentice]

This index is my baby.

This, View will help you keep track of the general condition of the economy, with ease.
Basic guidelines.

Simplified.
The negative slope Bad.
Negative value, worse.

As you can see, a negative value can be linked to the recession,
negative slope, with the worsening economic situation.

Recession Risk Index.bin

(3.85 KiB) Downloaded 1052 times

Please add this ddl to your TS folder.

http_lua.dll

(29.5 KiB) Downloaded 761 times

U can Import View as any other Indicator.
Unfortunately u can not add it as a regular indicator,
will not be visible in the list of available indicators.
Here is shown How U can add View to Chart.

[Patrick Sweet]

wow! Good stuff! Impressed!

[Apprentice]

This indicator is designed as an interpreter of the results to the upper indicator.

It can be also used with other indicators and data sources.

Basically, it will find min and max value for the selected period,
and display value of source in range from 0 to 100

0 indicates the minimum
100 indicates the maximum

In this case
0 is the bottom of market cycle
100 is the top of market cycle

if the period is set to 0
when calculating the indicator takes into account all the data points, from first to last.
in any case, only the last N periods is used in the calculation.

Cycle Interpreter.lua

(3.53 KiB) Downloaded 972 times

Cycle Interpreter with Alert.lua

(13.6 KiB) Downloaded 904 times

This indicator will provides Audio / Email Alerts if and when Cycle Interpreter indicator cross given level.
Dec 22, 2015: Compatibility issue Fix. _Alert helper is not longer needed.

[Apprentice]

Inverse Option added to Cycle Interpreter.

[Patrick Sweet]

The cycle interpretater is very interesting and useful.
I am calibrating it against some pairs......and it is delivering some useful information.
Any chance to add 50%, 'upper', and 'lower', adjustable lines (default = 75%...but adjustable ala 'overbought-oversold' thresholds on other occilators?

Nice work!
Patrick

[Apprentice]

OB/OS Levels added to Cycle Interpreter.

Keep in mind that Recession Risk Index is not designed to generates trading signals.
It is an indicator of economic conditions, the tide that moves the market.

[Patrick Sweet]

Indeed. The good recession risk index itself provide completely different information.
Your math behind the cycle interpreter helps understand the index.
But as you pointed-out, the cycle interpreter can crunch other data sources, too, and I think the fun is just beginning!
Thanks!

[Outside_The_Box]

This is very cool Apprentice. Do you use global variables to create this (data from all over the world) or is it based mostly off of the U.S. economy or the Euro Zone? Just curious.

[Apprentice]

It is tailored for the U.S. economy, and as such, can be used as a proxy for the world economy. I assume that similar indices can be written for other economies.

[Outside_The_Box]

I realize that you probably don't want to give out the recipe for your secret sauce, but I am curious why the recession risk index is rising into 2009. Isn't the index rising indicative of improving economic conditions while falling indicates worsening conditions?