Advanced GET: Tom Joseph's XTL, DMA Cloud & Breakout Signals

The Advanced GET XTL + DMA Cloud indicator provides a comprehensive trend identification and trade execution framework based on Tom Joseph's methodologies. It utilizes the Expert Trend Locator (XTL) to identify major impulse trends and provides visual breakout levels for entries, stops, and targets alongside a displaced moving average cloud for momentum tracking.

Usage

The tool is primarily used to identify and trade Elliott Wave 3-style impulses.

• Trend Identification: The script colors price bars to indicate trend state. Blue bars represent a bullish impulse, red bars represent a bearish impulse, and neutral/white bars indicate a lack of a clear trend.
• Breakout Signals: When a new trend color appears (the "Breakout Bar"), the indicator automatically calculates and displays entry, stop loss, and target levels. Traders can use these levels to frame a trade setup immediately following the trend shift.
• DMA Cloud: The Displaced Moving Average (DMA) cloud acts as a momentum filter and trailing stop. In an uptrend, the lower boundary of the cloud serves as a support level and trailing stop, while in a downtrend, the upper boundary serves as a resistance level and trailing stop.

Details

The indicator is composed of three primary components:

1. Expert Trend Locator (XTL): This algorithm identifies trend strength and direction by analyzing price momentum relative to a threshold, similar to how Elliott Wave counts identify impulse waves.
2. Breakout Logic: The script identifies the specific bar where a trend change occurs and uses the range (High-Low) of that bar to project entry and exit levels based on user-defined ratios.
3. Displaced Moving Average (DMA): Two simple moving averages are applied to the high and low prices and then shifted forward in time (displacement). This creates a "channel" or "cloud" that lags price action to provide a smoother area of dynamic support and resistance.

Settings

XTL

• XTL Period: The lookback period used for trend calculation (based on a CCI-derived calculation).
• Threshold Value: The sensitivity setting for determining when a movement becomes a bullish or bearish impulse.

DMA

• Show DMA?: Toggles the visibility of the DMA cloud.
• DMA Length: The period for the moving averages applied to highs and lows.
• DMA Displacement: The number of bars to shift the averages forward.

Breakout Bar Signals

• Show Breakout Bar Signals: Toggles the display of entry, stop, and target levels.
• Levels as Lines: If enabled, levels are drawn as continuous lines until a new signal occurs; if disabled, they only appear on the signal bar.
• Stop Loss Ratio: The multiplier applied to the breakout bar range to determine the stop loss distance.
• Entry Ratio: The multiplier applied to the breakout bar range to determine the entry level.
• Show Target 1/2: Toggles the visibility of the primary and secondary profit targets.
• Target Ratio 1/2: The multipliers applied to the breakout bar range to determine target levels.

FAQ

How do I use the bar colors?

Blue bars indicate a bullish trend, red bars indicate a bearish trend, and neutral bars indicate no significant trend. Entries are typically considered when the color shifts from neutral to a trend color.

What is the purpose of the DMA Cloud?

The DMA Cloud helps traders stay in a trend by providing a visual buffer. If price remains on the correct side of the cloud, the impulse is generally considered intact.

How can I access Advanced GET XTL + DMA Cloud?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.