The iCinDER™ indicators, W3 and V2, provide indication of the cyclical trend’s advance and decline, and as such, can provide cycle analysis information at the Minor, Intermediate and Major Cycles. The approach taken in the creation of the set of tools in the iCinDER™ products is to combine individual components into a cohesive, integrated analytical tool that can provide information as to the direction and strength of market movement of financial instruments traded in the open markets.

The basis of the indicators is extractions of dynamics of price and time with the added mathematical algorithms that attempt to capture the pure impulse movement of the instrument being evaluated. It is also understood that the indicator’s reliability and quality of feedback is based on the issue having adequate volume movement to ascertain the impulse of the indicator with higher efficiency and correlation. As with all technical analysis indicators, iCinDER™ cyclical indicators are designed to be used with other indicators you may be familiar with and that the user verify correlation to achieve positive confirmation of the output that is provided by iCinDER™ indicator.

The W3 and V2 indicators can also be filtered by other indicators such as RSI, Linear Regression Slope as well as others that the user may want to experiment with in their models.

How all this came to be…

Interview with Raul Jimenez, creator of iCinDER W3 and V2.

I have been trading since about 1989 and have devoted time to studying trading systems, indicators, Dow Theory, Elliott Wave Theory, etc. During all my trading years, I found systems that worked for a while then stopped working. At the time, I did not understand why but changed to another system that would work for a while.

In 2006, after working for a large software company for a number of years, I decided it was time to stop the traveling and fast paced lifestyle and devote some time to something I was passionate about – trading in the stock market.

I had spent time reading books on cycle analysis, MACD, RSI, adaptive indicators and other methodologies. It all came back to me as either the cycles were too closely correlated, tight fitting with virtually no divergence or loosely coupled. I knew that mathematically it was possible to measure multiple timeframes and correlate them to a single wavelength, which while not adaptive could provide high correlation to the measured instruments. I will not bother with discussing all the experiments, but one thing was clear – the business cycle was part of the solution. With this in mind, I devised an algorithm that analyzed price and time in 5 dimensions – this became V2 – and a secondary indicator that added a theoretical momentum type dimension. This last part was composed of 2 dimensions at 2 timeframes. Adding all this together to V2 --- W3 was born. This was December of 2006 when this was completed.

Initial complex implementations with scanners and strategies were done for Tradestation, and to date that is the most complete and complex model I have developed. The simple V2 and W3 were ported to other platforms – Metastock, eSignal and others.

Now we fast track to 2009 when a good friend of mine, George D, started discussing GA with me. I had worked on this before and thought of having a fresh look at V2 and W3 within a GA. My friend recommended Neuroshell. The rest is now history – about 5 months of work and testing, building models with iCinDER™ indicators and adding TurboProp, Fuzzy Indicators, Neural Indicators and Chaos Hunter.

Today, we have both V2 and W3, implemented in an external DLL. We ship the indicators with an extensive Help File and sample models that the user can use as starting points for their own models. We plan on providing more complex models for the users that have TurboProp, NI and even Chaos Hunter.