IIIX: Intraday Intensity Index
What is the Intraday Intensity Index Indicator?
The Intraday Intensity Index (IIIX) is a technical indicator that measures market activity on an intraday basis. It is calculated by dividing the sum of the absolute differences between each bar’s high and low by the average true range. The resulting value is then expressed as a percentage and plotted as a histogram on a separate chart.
The Intraday Intensity Index can be used as a tool to evaluate market volatility and determine the overall strength of a trend. A high IIIX value indicates increased market activity and strong trends, while a low IIIX value suggests weaker trends and decreased market activity.
Traders can use the Intraday Intensity Index to confirm or predict market trends, as well as to identify potential reversal signals. A rapid increase in IIIX values may indicate that a trend is coming to an end, while a sudden decrease may suggest that a reversal is imminent.
The Intraday Intensity Index can be used in conjunction with other technical indicators and chart analysis techniques to provide a more complete picture of market conditions and to help inform trading decisions.
How to use the Intraday Intensity Index Indicator?
Trend Identification: The IIIX can be used to identify trends in the market. If the IIIX is rising, it signals a bullish trend, and if it is falling, it signals a bearish trend. Traders can use this information to enter or exit positions in the market.
Overbought and Oversold conditions: The IIIX can also be used to identify overbought and oversold conditions in the market. When the IIIX is above its average, it indicates that the market is overbought, and when it is below its average, it indicates that the market is oversold. Traders can use this information to take profits or enter short positions.
Divergence: Traders can also use the IIIX to identify divergences between price and momentum. For example, if the price is making higher highs but the IIIX is making lower highs, it may signal a bearish reversal.
Trend confirmation: The IIIX can also be used to confirm trends in the market. If the IIIX is moving in the same direction as the price, it confirms the trend, and if it is moving in the opposite direction, it signals that the trend may be losing momentum.
IIIX Indicator at Traderlands Strategy Creator Tool
To create a strategy on Traderlands Workshop, start by choosing the “IIIX INT Intraday Intensity Index” (represented by the turquoise line) and “IIIX INTSUM Intraday Intensity Index” (represented by the histogram) from the list of indicators. An example strategy is shown in the image below. You can use the Intraday Intensity Index indicator to create a strategy after doing your own research.
Enter Algorithm Rules You Can Add To Strategy Creator
Exit Algorithm Rules You Can Add To Strategy Creator
WARNING: The entry and exit strategies in the images are prepared ONLY for educational purposes to explain how indicators work. It does not guarantee any profit.
When creating an algorithmic trading strategy, a rule set is usually created by using more than one indicator.
It is important to note that the Intraday Intensity Index should not be used as a standalone indicator and should be combined with other technical analysis tools for a more comprehensive analysis of the market. Additionally, different traders may have different interpretations of the IIIX, and it is essential to backtest any trading strategies using the IIIX to determine its effectiveness in different market conditions.
TradingView: https://www.tradingview.com/v/klr607Yi/
