Archive for the ‘forex divergence’ Category:
BJF Trading Group MT4 Iindicators - Independent Opinion
Author: Sarkis S. (Russia)
ATTENTION! Indicators have been tested in “kitchen mode”, and there was almost no noise on M1 and M5! So, drawn conclusions are true for all timeframes (M1-H4). At MIG Bank and similar brokers, conclusions are true for timeframes (M15-H4).
General-Purpose Indicators (Strength, Levels)
Reiteration of signals (divergences) (TF-M15/H4) +
Effectiveness (1-10 points) – 8
Builds all possible channels. Redraws quite well on different TF. Sometimes poorly cleans remains and old lines remain. The best channel indicator I’ve ever seen. The main advantage is that it shows the channel of a lower TF, on the one under observation + color orientation. It is useful for those who prefer using dynamic channels.
Disadvantages – slows the terminal, doesn’t like a large number of other indicators, which build on a price chart.
Reiteration of signals (divergences) (TF-M15/H4) +
Effectiveness (1-10 points) – 10
Ideally builds resistance lines H1, H4, D1, W1, which are truly significant. They always can be taken into account in a Trading Strategy.
Reiteration of signals (divergences) (TF-M15/H4) +
Effectiveness (1-10 points) – 5
Works only with the ones understanding the Wolf Waves theory. Gives Wolf Waves signals. However, real TF are Н1, Н4. I didn’t get a chance to observe it on lower TF. Signals are clear, reproducible if you correctly understand changeable peaks. Disadvantage – not all currency pairs have Wolf Waves. Works bad with yen and some cross-rates. Works perfectly with EUR, GBP, AUD, FRF. Works not very good with NZD, CAD, yen, cross-rates.
Effectiveness (1-10 points) – 10
No comments. Everything is perfect. It is especially convenient that points of 5-digit brokers are the same as points of 4-digit brokers!
I couldn’t find application for this indicator. The basic disadvantage – it works “here and now”, and there is no possibility to see to the overall picture to compare its data to historical data. I think that a separate filter should be created to make everything look informative. But I cannot imagine what this filter should look like.
I was not able to install it. I’m not a fan of Elliott waves as well as anything that tries to find global order in chaos. I will describe it when I examine it. Judging by description, it’s not a very useful thing. I think it’s a separate subject, and a separate global program should be created for its realization.
Divergence Oscillators2,3 (Fast, Slow, Trend)
Reiteration of signals (divergences) (TF-M15/H4) +/- low
Effectiveness (1-10 points) – 3
An average indicator. Neither one way nor the other. I couldn’t find application for it. Simply said, concerning divergence it’s something average between TrueStrenthIndexI and CCI, but the border can’t be clearly drawn. It should rather be used in the directional channel for observation of divergence between the adjacent significant maximums or minimums. It’s for devotees of universalization…
Reiteration of signals (divergences) (TF-M15/H4) none
Effectiveness (1-10 points) – 2
Extremely non-reproducible indicator. It is impossible to attach it to anything. Only false signals on a strong TREND. At least, it gives some reliable signals in the directional channel. Only false signals in the flat channel, too. Quite doubtful indicator, which requires special attention and special strategy.
i-AC
Reiteration of signals (divergences) (TF-M15/H4) +/- average
Effectiveness (1-10 points) – 5
An average indicator. Neither one way nor the other. I couldn’t find application for it. Simply said, concerning divergence it’s something average between TrueStrenthIndexI and CCI, but the border can’t be clearly drawn. It should rather be used in the directional channel for observation of divergence between the adjacent significant maximums or minimums. It’s for devotees of universalization…
Reiteration of signals (divergences) (TF-M15/H4) + high
Effectiveness (1-10 points) – 10
Takes the closest peaks, closer than TrueStrenthIndexI! For correct perception you should add BOTH trade areas to the default setting, +(100-200), -(100-200), with scale fixation +-350. It significantly increases its efficiency of use by users. As a matter of convenience, set NORMAL DIVERGENCE by default (not HIDDEN)!
i-Stoch, i-Range Explanation Index, i-WPR
Reiteration of signals (divergences) (TF-M15/H4) + average
Effectiveness (1-10 points) – 5
The worse variant than CCI!
Reiteration of signals (divergences) (TF-M15/H4) + average
Effectiveness (1-10 points) – 7
Signals are very similar to TrueStrenthIndexI! But there are no overbought/oversold control areas, so you control it by shift of minimums/maximums. Quite good at work along the trend: it gives less false signals than other oscillators. At a strong trend it gives accurate signals of hidden divergence. At the directional channel it gives quite good signals of normal divergence.
Reiteration of signals (divergences) (TF-M15/H4) + average
Effectiveness (1-10 points) – 5
The worse variant than TrueStrenthIndex!
Reiteration of signals (divergences) (TF-M15/H4) + high
Effectiveness (1-10 points) – 10
Takes average peaks, farther than CCI! For correct perception you should add BOTH trade areas to the default setting, +(50-80), -(50-80), with scale fixation +-100. It significantly increases its efficiency of use by users. As a matter of convenience, set NORMAL DIVERGENCE by default (not HIDDEN)!
Reiteration of signals (divergences) (TF-M15/H4) + average
Effectiveness (1-10 points) – 5
An average indicator. Simply said, concerning divergence it’s something average between TrueStrenthIndexI and i-CMF, but the border can’t be clearly drawn. It should rather be used in the directional channel for observation of divergence between the adjacent significant maximums or minimums. It’s for devotees of universalization…
Reiteration of signals (divergences) (TF-M15/H4) + average
Effectiveness (1-10 points) – 5
It is similar to i-ACC, but it doesn’t shift tops of maximums and minimums. It is very similar to PowerRVI, but only with the fixed level “0”. It can be considered as a “light version” of Power_RVI, it is analogous in relation to divergence.
Reiteration of signals (divergences) (TF-M15/H4) + high
Effectiveness (1-10 points) – 8
Takes average and closest peaks, like CCI and i-TrueStrenth IndexI! For correct perception you should add BOTH trade areas to the default setting, +(30), -(30), with scale fixation +-40. It significantly increases its efficiency of use by users. As a matter of convenience, set NORMAL DIVERGENCE by default (not HIDDEN)! It is an interesting indicator because of availability of the overbought/oversold dynamic channel. However, nonstandard form of execution requires operating skills. It is a powerful indicator. Especially good in the directional channels. Shows worse results ALONG THE TREND or in the FLAT CHANNEL!
Reiteration of signals (divergences) (TF-M15/H4) + high
Effectiveness (1-10 points) – 8
Signals of NORMAL DIVERGENCE illustrate reverses, junctions of a channel of one direction to another one very well! Takes farther peaks than TrueStrenthIndexI! Effectiveness of signals is low at a strong trend or the flat channel. At the directional channel it gives quite good signals of normal divergence.
Effectiveness (1-10 points) – 0
No comments
Effectiveness (1-10 points) – 0
It feels like от i-ACC, only in a trend variant. It’s quite original, but will be suitable only for a certain audience…
Reiteration of signals (divergences) (TF-M15/H4) +/- average
Effectiveness (1-10 points) – 5
Everything is quite similar. OSMA sometimes gives signals of reverses of adjacent maximums and minimums.
i-KST Is a reversed MACD
MACD is the most understandable and the best choice for consumers. I recommend adding colors like in MACD(Elder) for better informativity.
Volatility, Volumes, Strength 2,3
Reiteration of signals (divergences) (TF-M15/H4) +/- average
Effectiveness (1-10 points) – 5
Gives quite good signals of divergence, but will rather be suitable for those, who play on these lines as on the basic strategy. It is of no interest for me.
Reiteration of signals (divergences) (TF-M15/H4) -
Effectiveness (1-10 points) – 2
No comments. I’d rather use simple tick volumes.
Reiteration of signals (divergences) (TF-M15/H4) -
No comments. Interesting oscillator of strength of bulls/bears. For fans of Elder indicator. I’ve tried using it in different situations and combinations, but it doesn’t give reliable signals, not speaking about divergences. In my opinion, it is not very valuable…
The second one, price following, is also less informative
Reiteration of signals (divergences) (TF-M15/H4) -
Effectiveness (1-10 points) – 2
I understand only tick volumes among all other volumes, which are not really effective.
Reiteration of signals (divergences) (TF-M15/H4) +/- average
Effectiveness (1-10 points) – 8
It can be used in certain situations. It is also the most informative signal of reverse divergence.
Reiteration of signals (divergences) (TF-M15/H4) +/- average
Effectiveness (1-10 points) – 5
It is a very specific indicator of volatility, like i-ACC among oscillators. In my opinion, it gives lagging signals.
No comments
Reiteration of signals (divergences) (TF-M15/H4) -
Footnotes
Note: names are given in accordance with names in МТ4.
2 – names of oscillators are given in accordance with their significance (the most usable and understandable indicators (in my opinion) are marked with color)!
3 – Bill Williams’ indicators are not additionally commented.
The DeMarker Indicator
The DeMarker Indicator is one of the oscillators of the technical tools. It was created by Tom DeMarker as he wanted to evaluate the demand for an underlying pair of currencies.The DeMarker indicator associates the recently closed prices with the most recent action of the price.Dealers will look to this indicator when they want to understand what are the oversold and overbought conditions, the levels of risk and work out at what point the price exhaustion is about to happen.DeMarker can be called an “oscillator” because its curve will move between 1 and zero.
There are some different versions of the indicator that use a ‘100’ and ‘-100’ range.
This DeMarker indicator will normally consist of some lines that are placed at the “0.30” and “0.70” points as warning signs.Any amounts that cross either of the markers are viewed as riskier and those inside the markers are less risky.
Oversold and overbought situations are close by at the point the lines are crossed by the curve.
The formula for DeMarker
It’s common to find DeMarker on MT4 and it is made up of the following sequence:
1. Pick a time frame “X” (Common is “14”, but “8” or “9” are more sensitive);
2. Work out the DeMax = High – Previous High if >0, otherwise DeMax = 0;
3. Work out DeMin = Previous Low – Low if >0, otherwise DeMin = 0;
4. DeM = MA of DeMax/(MA of DeMax + MA of DeMin).
There are programs that will produce a DeMarker indicator and you will see DeMarker indicator as a curve that fluctuates.
Dealers may sometimes put in an exponential moving average as well so as to boost the dealing signals.A DeMarker is seen as a “leading” indicator, as the signs alert that there will soon be a change in any trend.Its downside is that the timing of DeMarker is poor which is why a lagging indicator is often added.DeMarkers will identify the big lows better than the big highs.Smaller timeframes will increase the indicator’s sensitivity but also the volatility and likelihood of increased drop signs.As previously mentioned, the DeMarker values that are under 0.30 or above the 0.70 level should be looked at.
However, the main areas to pay attention to will be the top and bottom points and even more importantly once they are nearing the zero or ‘1’.
This DeMarker oscillation will be more effective over longer periods such as daily ones but they can also be applied to the shorter ones as well.There are no guarantees that any technical indicator will be right on every single occasion and this rule applies just as much to the DeMarker indicator.There are always going to be occasions when the wrong signals are given but even so the consistency of the positive signals are sufficient that overall the forex dealer should be at an advantage.
It will take time to develop the skill and technique needed to fully understand the signals provided by the DeMarker indicator. And it is always best to use the DeMarker indicator with a subsequent tool that works well with it so as to reinforce any possible trend changing signals.It’s important to note that Forex exchange dealing can be a risky process and will not be the right investment activity for everyone.
Even though using the DeMarker indicator can improve your chances of recognising a forthcoming change in a trend, it is the leverage proportions that may work in your favour and at times they may work against you. In other words, it is always possible that your losses may exceed the original sum invested
CCI Indicator
CCI Indicator explanation
A CCI indicator is another name for the commodity channel index. This is another oscillator and was originally introduced when Futures magazine (previously known as Commodities) ran an article about the CCI indicator by Donald Lambert in October 1980.
Having moved on from those times the CCI indicator has since increased in how popular it has become and it is now quite normal for a lot of dealers to use it to identify trending cycles in stocks, commodities & equities.
By changing the period over which averaging is done, the CCI indicator is changed to reflect the market’s time period.
What does the CCI Indicator measure?
The CCI indicator will assess how much a stock can vary from the statistical mean. It can be worked out by taking the difference between the simple moving average of a stock and its typical price. This figure is then divided by the typical price’s mean absolute deviation.
To allow most of the CCI indicator values to be somewhere between -100 and + 100 a constant of 0.015 has been set. It will then oscillate higher and lower than zero.
The amount of periods used will determine what proportion of CCI indicators that are in the range of -100 to +100.
There will be fewer values in the -100 to + 100 range and they will be more erratic in shorter CCI indicators.
Equally, if there is a greater time period used to work out the CCI indicator, there will be a higher proportion of values that are in the +100 to -100 range.
The CCI indicator is used by dealers and general investors to look for any reversals in price as well as how strong trends are and any extremes of price.
Like a lot of these instruments, the CCI indicator can be combined with more analysis tools. As an oscillator indicator of momentum, it fits into one of the categories that can affect a technical assessment along with volume indicators and price charts.
The CCI indicator is not dissimilar to Bollinger Bands in that it can be used for spotting any deviations away from a price trend, working as an indicator of oversold or overbought situations.
The more usual fluctuations of the CCI indicator will happen within the scope of the -100 to +100 and will usually vary above and below a line at zero.
Any value in excess of +100 would tend to show as overbought and under -100 would be oversold. In keeping with alternative indicators of this type, when an oversold or overbought situation occurs, it’s likely that price will adjust itself in time.
The CCI indicator is becoming very popular with investors. Often it will be used by dealers to decide trending cycles across equities, commodities and currencies.
Using the CCI indicators alongside alternative tools can be a very useful instrument in spotting possible price peaks and troughs which in turn can offer a good basis for predicting future movements in price.
As the majority of the CCI indicator will shows values between 70 to 80 percent as being in the +100 and −100 range a signal to buy or sell will only be relevant for 20 to 30 percent.
It follows that once the CCI indicators goes in excess of +100, a stock can be said to be moving into a trend that is strong and upward and a signal is made to buy.
But once this returns to underneath +100, this situation should be shut. Equally once the CCI indicator is under -100, a stock is said to be moving into a trend that is strong but downward and the signal is given to sell.
The CCI indicator is very flexible and can help in spotting price reverses.
The bottom line
The CCI indicator has enjoyed considerable increase in just how popular it is with technical investors as it can be used to spot trends in currencies, equities as well as its original focus – commodities.
By using it with more oscillators, it can help to pick out the highs and lows of a price which can help forecast any future price changes.
Tags: cci indicator
Bollinger Bands Explanation Video
Learn more: Bollinger Bands
BOLLINGER BANDS Forex Indicator
BOLLINGER BANDS
The method of taking a moving average with a couple of trading bands above and below it was created by John Bollinger (an experienced market technician ) in the 1980s.
Unlike a percentage forecast from a regular moving average, Bollinger bands simply add and deduct a standard deviation calculation.
Standard deviation is a precise formula that indicates volatility, showing how the stock price can fluctuate from its correct value.
By measuring price instability, Bollinger bands alter themselves to market situations.
This is exactly what makes them so handy for traders: they are able to uncover pretty much all of the price data needed between the two bands.
So what is a Bollinger Band?
Bollinger bands comprise of a centre line and two price channels (bands) above and below it.
The centre is an exponential moving average; the price channels are the normal distortions of the stock being analysed.
The bands would increase and tighten as the price action of an issue becomes unstable (expansion) or becomes bound into a tight trading model (contraction).
A stock could transact for long periods in a trend, but with some instability every now and then.
To more easily identify the pattern, traders use the moving average to organize the price activity.
By doing this, traders can collect important information about how precisely the market is buying and selling.
For example, after a severe increase or decline in the trend, the market may solidify, trading in a narrow fashion and going above and below the moving average.
To more easily monitor this action, traders use the price channels, which include the trading activity across the trend.
We realise that markets trade erratically on every day even though they will be still transacting upwards or downwards.
Service professionals employ moving averages with support and resistance lines to anticipate the price action of a stock.
Upper resistance and lower support lines are initially created and then planned to form channels within which the trader anticipates prices to be included.
A few traders make straight lines linking higher or lower sides of prices to recognize the uppermost or lower price extreme limits and then add parallel lines to specify the channel within which the prices ought to move.
Provided that prices do not move out of this channel, the trader can be fairly positive that prices are going as predicted.
When stock prices regularly meet the uppermost Bollinger band, the prices are thought to be overbought;
in contrast, when they continually hit the lower band, prices tend to be considered to be oversold, causing a buy signal.
When employing Bollinger bands, assign the upper and lower bands as price goals.
Suppose the price moves off the lower band and crosses above the 20-day average (the middle line), the uppermost band seems to stand for the upper price target.
In a strong uptrend, prices usually fluctuate between the top band and the 20-day moving average.
When that occurs, a cross-point under the 20-day moving average signals that there may be trend heading downwards.
This doesn’t mean that Bollinger bands are not a well-regarded gauge of overbought or oversold items, but we should start off by first recognising trends and then straightforward moving averages before we move on to more exciting indicators.
The Bottom Line
While each and every strategy has its downsides, Bollinger bands have become one of the most useful and frequently used instruments in spotting excessive short-term prices in a security.
Buying when stock prices cross beneath the lesser Bollinger band frequently allows traders to take advantage of oversold situations and gain when the stock price goes back up in the direction of the centre moving-average line.
Wolfe Wave Indicator
Wolfe Wave Explanation
The Wolfe Wave is a natural pattern found in the forex market. Its basic shape shows a fight for balance, or equilibrium, between supply and demand. This naturally occurring pattern was not invented, but rather discovered as a means to predicting levels of supply and demand.
These patterns are very versatile in terms of time, but they are specific in terms of scope. For instance, Wolfe Waves occur in a wide range of time frames, over minutes or even as long as weeks or months, depending on the channel. On the other hand, the scope can be predicted with amazing accuracy. For this reason, when correctly exploited, Wolfe Waves can be extremely effective.
To identify Wolfe waves, they must have the following characteristics:
Waves 3-4 must stay within the channel created by 1-2
Wave 1-2 equals waves 3-4 (shows symmetry)
Wave 4 is within the channel created by waves 1-2
There is regular time between all waves
Wave 5 exceeds trend line created by waves 1 and 3 and is the entry point
The estimated price is a price along the trend line created by waves 1 and 4
Wolfe Wave Indicators Comparison
We have analyze several Wolfe Wave Metatrader 4 indicators. All Wolfe Wave Metatrader 4 indicators based on ZigZag. BJF Trading Group Wolfe Wave Metatrader 4 Indicator can recognize all Wolfe wave paterns on specified time range. It checks every top for potential 1,2,3,4,5 points not only ZigZag tops.
New AO Forex Divergence Indicator
Awesome Oscillator Forex Divergence Indicator
Bill Williams’ Awesome Oscillator (AO) is designed to show current market momentum and is displayed as a histogram. The Awesome Oscillator is created using the difference between the 34-period and 5-period simple moving averages of the bar’s midpoints (H+L)/2.
Each bar of the histogram that is higher than the preceding bar is green. Each bar that is lower than the preceding bar is red.
This indicator is intended to show what’s happening to the market for the current period (compared to the momentum of a longer period), and some traders use its signals for buying and selling decisions.
Forex Divergence Awesome Oscillator shows divergence areas on indicator and arrows on chart.
Learn more about Forex Divergence Indicators
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