Strength & Trend

These are the specific different indicators that are used to create the Strength and Trend Bands on the Harmony Oscillator. The different indicators used are arithmetically “Harmonized” to ensure that a single indicator does not heavily influence the Strength and Trend Bands.

The Strength Line is shown on the Oscillator as the Tinner Line and usually moves more quickly than the Trend band. As it moves up it indicates overbought conditions and as it moves down it indicates oversold conditions. The more line is moving vertically up means the strength down is greater whereas the more vertically the line is moving down means the strength up is greater. 

The Trend Line is shown on the Oscillator as the Thicker Line and usually moves more slowly than the Strength Band. As it moves up it indicates a more Bullish Trend and as it moves down it indicates a more Bearish Trend. The more sharply it moves up or down shows that the Trading Pair being viewed is Trending more sharply to the Upside or the Downside. As the Trend Line moves sideways it indicates in that timeframe more Ranging Price Action compared to more Trending Price Action.

Strength Settings

The Strength Band uses - Stochastic RSI, Relative Strength Index, Commodity Channel Index, Awesome Oscillator, and TTM Squeeze in its calculation

Turning any of these different indicators on or off can be done by ticking or unticking the checkbox next to that indicator. 

Strength Sensitivity

This is related to the Sensitivity of the Strength Band and changes how smooth or how choppy the Strength Line will appear.

The default setting is 5 and has a sensitivity range of 1 to 10 at .5 increments. 

Increasing the sensitivity will plot the Strength Line closer to the current Price Action and deviations will appear more frequently. Decreasing the sensitivity will plot the Strength Line further away from the current Price Action and deviations will appear less frequently. 

It is important to adjust sensitivity based on the current Price Action and based on the timeframe that is being used. Decreasing the sensitivity will have a “smoothing” effect on the Strength Line and is suitable when Price Action moves the Strength Line too erratically.  Increasing the sensitivity will have a chopping effect on the Strength Line and is suitable when Price Action moves the Strength Line too slowly to be actionable.

Trend Settings

The Trend Band uses - Moving Average Convergence Divergence, Directional Movement Index, Schaff Trend Cycle, Simply moving Averages, and Exponential Moving Averages in its calculation.

Turning any of these different indicators on or off can be done by ticking or unticking the checkbox next to that indicator. 

Trend Sensitivity

This is related to the Sensitivity of the Trend Band and changes how smooth or how choppy the Trend Line will appear

The default setting is 5 and has a sensitivity range of 1 to 10 at .5 increments. 

Increasing the sensitivity will plot the Trend Line closer to the current Price Action and deviations will appear more frequently. Decreasing the sensitivity will plot the Trend Line further away from the current Price Action and deviations will appear less frequently. 

It is important to adjust sensitivity based on the current Price Action and based on the timeframe that is being used. Decreasing the sensitivity will have a “smoothing” effect on the Trend Line and is suitable when Price Action moves the Strength Line too erratically.  Increasing the sensitivity will have a chopping effect on the Strength Line and is suitable when Price Action moves the Trend Line too slowly to be actionable.