Key Elements
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There are 3 major components to Cornucopia; all 3 are experimental and in early beta version.
Buy & Sell Signals
Doritos
Fade Alerts
All can be heavily customizable, default settings are only a suggestion and personal preferences of coder.
Buy/sell signals are most effective for medium timeframes and less useful for high timeframes.
Signal interpretation is self explanatory, simply “buy” or “sell’. It doesn’t flip or provide consistent flow of trade, meaning it wasn’t designed to provide exit or stop It is meant to act as an entry point suggestion and indicate potent reversal areas.
It is ineffective in prolonged intense trends, driven by high timeframes. There is an option to change filter selection of buy & sell signals.
Changing filter changes signal behavior drastically and can tackle the drawdowns from parabolic trends or fit some conditions/confluences surgically. Set the mode that fits your discretionary approach best, default is personal preference not an advise.
Doritos are most effective in lower timeframes. In the same way other parts of cornucopia are made to act as component only! It’s very weak during a parabolic trend, if used in such conditions its advisable to use Crayon like invalidation methods.
It produces very decent range trading entry points, scalp points and acts as a perfect confluence/trigger with less sensitive indicators.
Fade alerts predict whipsaw like candles, fakeouts and illiquid moves. In short, it detects anomalies that can be faded with a high success rate. It's a counter trend tool, as it doesn’t wait for price reversals, it marks the candles that normally is seen as strong trending PA by majority of traders. As an example, we get relatively huge impulse down moves, the indicator detects an anomaly and plots green buy signal at the same candle suggesting to fade it.
It's a counter trend tool, it has zero lag, but it does provide quite a few false positives. The logic of anomaly detection is in the beta stage and is constantly being worked on, we provide "developer mode" type options in the input menu for fine tuning, for those willing to play with advanced customization.
NOTE: To tackle false positives, set the invalidation above the signal candle, this produces very decent results, while used even in a standalone way, instead of acting as confluence. By design anomaly fading signals should play out on the next candle.
