BloodHound Templates

Signals BloodHound Template on TICK (BB) Chart

The BloodHound signals template is loaded into the BloodHound instance on the TICK (BB) chart. The name of the template starts with ‘DA’ (for Divergence Analyst) and ends with the instrument’s symbol (i.e., ‘DA CL’ for the ‘TTP DivAnalyst’ Crude Oil workspace).

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The template has two Logic Boards to choose from. ‘Signals’ and ‘SignalsExt.’

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‘Signals’ Logic Board

The ‘Signals’ Logic, will signal bars that meet the following criteria:

  1. Pass the divergence requirements
  2. Pass the two trend requirements
Divergence Requirements

By default, the ‘DA …’ BloodHound signals templates require at least two or more charts with regular divergence setups. However, not all combinations of the different regular divergence setup kinds will pass for only two charts with signals. If only two charts have regular divergence setups, at least one of those two charts must have a Double Regular Divergence Setup or a Triple Regular Divergence Setup. If three or more charts have a regular divergence setup, they can be of any kind.

Each of the six solvers connected to the red ‘Additive’ node has a Divergence Analyst Reader indicator connected to one of the six charts reading the ‘AnyRegularDivSetup’ data series.

TICK (BB) RegMomDivSetup
MIN (1) RegMomDivSetup
TICK (1) RegMomDivSetup
MIN (2) RegMomDivSetup
TICK (2) RegMomDivSetup
MIN (3) RegMomDivSetup

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The AnyRegularDivSetup data series sets the following values for the signals:

5 = BullishHiddenToDoubleRegularDivSetup
4 = BullishHiddenToSingleRegularDivSetup
3 = BullishTripleRegularDivSetup
2 = BullishDoubleRegularDivSetup
1 = BullishSingleRegularDivSetup
-1 = BearishSingleRegularDivSetup
-2 = BearishDoubleRegularDivSetup
-3 = BearishTripleRegularDivSetup
-4 = BearishHiddenToSingleRegularDivSetup
-5 = BearishHiddenToDoubleRegularDivSetup

Since all the Divergence Analyst’s on the charts are solving for only Regular Divergences, the ‘HiddenToRegularDivSetup’ signals are not found (Hidden Divergence is disabled).

3 = BullishTripleRegularDivSetup
2 = BullishDoubleRegularDivSetup
1 = BullishSingleRegularDivSetup
-1 = BearishSingleRegularDivSetup
-2 = BearishDoubleRegularDivSetup
-3 = BearishTripleRegularDivSetup

I use the Threshold solver in BloodHound for the Divergence signals, and I set the following values for the single, double, and triple divergences:

Single Divergence = 0.15
Double Divergence = 0.18
Triple Divergence = 0.22

However, because the Threshold solver allows you to set only five different values (A,B,C,D,E) for the data series, and C (middle value) needs to be set to 0, I have to use a workaround to set different values for all three regular divergence kinds (refer to the image).

*Note: Keep in mind that BloodHound actually sets both Longs and Shorts to +1, independently, although visually it shows +1 for longs and -1 for shorts which is why you see that both the Long Output and Short Output have positive values set for both the positive and negative values retrieved from the accessed data series.

Thresholds:

A = 3 (BullishTripleRegularDivergence)
B = 2 (BullishDoubleRegularDivergence)
C = 0
D = -2 (BearishDoubleRegularDivergence)
E = -3 (BearishDoubleRegularDivergence)

Long Output:

Greater Than 3 = 0.22
At 2 = 0.18
At 0 = 0.12
At -2 = 0
Less Than -3 = 0

Short Output:

Greater Than 3 = 0
At 2 = 0
At 0 = 0.12
At -2 = 0.18
Less Than -3 = 0.22

You’ll notice that no value exists for +1 for BullishSingleRegularDivergence and -1 for BearishSingleRegularDivergence.

When the accessed data series sets +1, +2, +3 for different kinds of longs signals and -1, -2, -3 for different kinds of short signals, and the Threshold values are set in BloodHound like you see in the image, where C = 0 and then B = 2 and D =-2 (rather than +1 and -1), BloodHound will take an average of the set value for C ‘At 0’ and set value for B ‘At 2’ and use that average of the two as the set value ‘At 1’ that doesn’t exist since there’s no room to set it…

It’s a neat little trick, but it’s making my head hurt writing it out like this… For example, if I want to set a value of 0.15 for both 1 and -1, and the value ‘At 2’ and ‘At -2’ is 0.18, then I need to find the number that when added to 0.18 and divided by 2 = 0.15…

Let’s set that number to N, and solve for it using the following equation:

(0.18 + N) / 2 = 0.15
… is the same as 0.18 + N = 0.15 * 2
… is the same as N = 0.30 – 0.18
… N = 0.12

Therefore, I just need to set the Long Output and the Short Output for C ‘At 0’ to 0.12 to get a set output of 0.15, as (0.12 + 0.18) / 2 = 0.15.

*Note: Since the Threshold solvers set values lower than 0.8 for each of the kinds of regular divergence setups, no signals will show up on the chart when connecting one of the solvers directly to the ‘Results’ node. I provided a ‘Solver Test’ ‘Or’ node with a set multiplier that will increase the set values for the signals high enough to pass the 0.8 BloodHound threshold and allow the signals to show up on the chart. Just connect the solver to the green ‘Solver Test’ Or node, and then connect the Or node to the Results node, and you should see the signals.

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Additive Node

The Additive node adds up all the set values from the solvers connected to it. You can also set a multiplier for the additive node, though, which will multiply the added value by the set multiplier. In the image below, you can see that I have set a multiplier of 2.3 for the additive node. Using the additive node allows me to set a ‘3 out of 6’ type of condition for requiring 3 out of 6 charts to have any kind of Regular Divergence. You can get a lot fancier with it, though, as you’ll see…

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I have created a Google Sheet that shows the number of charts that must have a signal, per the set values for the data series, before BloodHound will paint the long or short. In the image below, notice the three rows (blue text) showing the set values for the three different kinds of regular divergence: Triple (row 64), Double (row 76), and Single (row 88) Divergence signal values of 0.22, 0.18, and 0.15, respectively. The row (in red text near the bottom) named ‘Additive Node Multiplier = 2.3’ (row 103) sets the multiplier value for the additive node and then recalculates values for each chart’s signal to the right in the same row. The cells are highlighted in red when the values add up to above 0.8, which is the minimum threshold value that must be met for BloodHound to paint the signal for a bar. Row 100 shows the minimum number of charts that must have signals for BloodHound to paint the bar.

By default, the ‘DA …’ BloodHound signals templates require at least two or more charts with regular divergence setups. However, not all combinations of the different regular divergence setup kinds will pass for only two charts with signals. If only two charts have regular divergence setups, at least one of those two charts must have a Double Regular Divergence Setup or a Triple Regular Divergence Setup. If three or more charts have a regular divergence setup, they can be of any kind.

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You can make a copy of it or download it from THIS PAGE.

Trend Requirements

The trend requirements for are really quite simple. I am using the same settings for the two TTP Volatility Stops indicators that are on the TICK (BB) chart for the two solvers within the BloodHound signals template.

VolatilityStop(100-5-7-9)

VolatilityStop(200-9-12-15)

The VolatilityStop(100-5-7-9) draws three trailing stop lines using an AverageRange 100-period and a multiplier of 5 for StopLine1, 7 for StopLine2, and 9 for StopLine3. When a price bar closes beyond one of the lines, the line flips direction. When a bar is above a line, that line is colored with the uptrend color (green). When a bar is below a line, that line is colored with the downtrend color (red). The Volatility Stop has a built-in data series for ‘Trend’ that is set to +1 when a bar is above any two of the three lines, +2 when a bar is above all three lines, -1 when a bar is below any two of the three lines, and -2 when a bar is below all three lines.

The VolatilityStop(200-9-12-15) draws three trailing stop lines using an AverageRange 200-period and a multiplier of 9 for StopLine1, 12 for StopLine2, and 15 for StopLine3.

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In the BloodHound signals template, longs are allowed when a full bar is above at least one of the lines from both solvers, and shorts are allowed when a full bar is below at least one of the lines from both solvers. Because being above only one line is the same thing as being below two lines, the value set in the data series is -1, when a bar is above only one line. Vice versa for shorts (see the image).

The lines are set in the indicator’s properties to be automatically hidden from the chart until you click on the ‘VS-‘ button on the toolstrip of the chart.

There is a 3rd requirement option that you could enable by attaching the solver named ‘LH><SD2-VWAP’ to the ‘And’ node just the left of the ‘Results’ node. This solver requires the low of the bar (for longs) to be touching or below the VWAP -2SD band, and the high of the bar (for shorts) to be touching or above the VWAP +2SD band.

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‘SignalsExt.’ Logic Board

The ‘SignalsExt.’ Logic Board is the exact same set of conditions as the ‘Signals’ Logic Board with the exception of a ‘Signal Extender’ Function Node and a WMA(4) solver requirement. This Logic set takes the signal output from the Divergence and Trend requirement conditions and extends the signal for five bars, allowing the signal to pass (for Longs) only when a price bar has its Typical Price [(High + Low + Close) / 3] above the WMA(4). Having this extra requirement simply ensures that the price is moving in the direction of the signal before allowing it to draw. You can see the difference between the two in the images below.

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OTF BloodHound Templates

The ‘OTF’ (Operative Timeframe) BloodHound templates are on the MIN (3), MIN (2), and MIN (1) charts. These templates identify the potential ends of corrective patterns (pullbacks within a trend). These templates, alone, are quite powerful, but like every other technical analysis tool, they should not be used alone to determine trade entries.

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1. The start of the potential correction (or pullback)

2. The first wave of the retracement/correction/pullback within a trend (potential A wave)

3. A temporary continuation of the trend without breaking out (potential B wave)

4. A break of the potential A wave that meets a few conditions (potential C wave)

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