Archive for the ‘forex indicator’ Category:
Principles of basing a Trading Strategy on Divergence Metatrader Indicators
We’ve already described the concept of divergence and how we offer to define it in the article. That’s why let’s skip the definition.
In my opinion, there is no indicator that could precisely (100%) predict behavior of the market. Divergence is quite a strong signal, but I wouldn’t make a decision basing only on one indicator. If you test divergence indicators in visual mode, you can notice that indicator predicts behavior of price to high precision (up to 90%) in some areas. But at the same time the number of false entries is high enough in other areas.
Almost all divergence metatrader indicators show divergence of oscillator and price, and almost all oscillators work well during a flat market and have high inaccuracy if there is a trend. It is not difficult to understand that divergence metatrader indicators give more precise signals during a flat market. We’ve received many letters with such questions: “What is the best divergence indicator and what currency and timeframe you recommend to use it for?†On the basis of aforesaid you can make a conclusion that there is no unambiguous answer on such questions. So, how to use divergence indicators correctly?
There are many methods, but I would like to offer a technique, developed by me several years ago. You should choose several currencies for trade, preferably with low currency correlation. The number of currencies depends only on your experience and attentiveness. For starters, we should find out the phase of the market on the given currency: flat or trend. There are many techniques in the case of using divergence and in the case of determining the phase of the market, and I don’t know which one is the best. But, in my opinion, you can precisely determine the phase of the market, only analyzing several timeframes.
For example, m15 H1 H4 D1 timeframes. You can either make visual analysis or use indicators. We’ve developed HeikenAshi MultiTF and Trend MultiTF indicators, which are perfect for this purpose,
Pic. 1 Metatrader Indicator HeikenAshi MultiTF
but you can also use oscillators (RVI, PowerRvi, etc.)
Pic.2 PowerRVI Metatrader Indicator
and analyze their direction in all timeframes; if directions coincide in higher timeframes, then it is possible to say with high probability that we are in the phase of trend. If oscillators are pointed towards each other, the market is in the phase of flat.
Having analyzed all currencies, selected for trade, we choose currencies, which are in the phase of flat. Divergence metatrader indicators signals on these currencies will be more precise. We can also use divergence indicators on trend currencies, but we will ignore the signals, directed against the trend. Signals, directed along the trend, will show you exit points of currency from retracements.
BJF Trading Group inc.
http://iticsoftware.com
Metatrader Indicators – What Indicators Are Available?
Summary: You will have to experience Metratrader before knowing the indicator. This article states all the important indicators obtained in this program.
You should know that Metatrader Expert Advisor is a great tool in dealing with forex market trades. This program helps you in the way that it contains indicators that provide you the necessary information on whether to buy or to sell that particular currency. Here are some important indicators that greatly assist you in forex trading.
The Metatrader indicator will be BB MACD. It is a combination of Bollinger Band and Moving Average Convergence Divergence indicator that predicts the market trend. You can also determine the strength of the trend by looking at the gap between the 2 bands. The concept of this indicator is based on standard deviation and moving averages.
The next Metatrader indicator will be BMA or Band Moving Average in full. This indicator is used save the older Metatrader moving average’s function. 2 bands are added to the standard line at both 2% below and above it. These lines function as the strong-pull back levels.
Fisher is also another indicator available in the software. This indicator is used to find the maximum and the minimum levels on the given period. In other words, it looks on the potential of the trades within the period desired. This indicator is created based on custom algorithms and it uses histogram to outline the trend.
Pattern recognition master also plays as a very important role in becoming an indicator. It is based on Japanese candlestick recognition automatically. The candle is marked with respect with the code written and the pattern shows corresponding to the markings. It is used to find the signal value of the pattern recognized.
Apart from that, price alert is also one of the important indicators. Price alert notifies you the changes in price of various currencies through sound. Once there is a change, a sound will beep and you can look at which currency is changing. In case you don’t trust the trading method, use this for manual trading.
Improve FX Profitability with Multi Timeframe Trading Forex Indicator
There are several traders across the globe who choose to have only one time frame while they are trading in the forex market. When they emerge to be profitable, they are contented with the situation. However, if you are a trader and you want to increase your success, it would make much more sense if you make use of two or more time frames for your trading decisions. Why? This is for the reason that basing entries and exits with a single time frame will make you oblivious to the broader trend. Therefore, you will risk trading for the longer term trend even when you are using any type of forex indicator.
To make it simpler, we will have an example. If both the four hour and one hour charts for a currency pair show that there is a sturdy bullish trend, it is definitely not a good idea for a trader to look for potential shorts using the 15 minute chart. A forex indicator will be able to guide you on how you are going to make the right decisions for your trade. Thus, you should always trade in the direction of the market. Using a forex indicator with a longer time frame will help the traders buy and sell for the trend’s longer term. You can time your trades using the forex indicator so that the trend will become your friend.
As a classic approach, the trader will have to choose his preferred time interval and later, he will apply the necessary forex indicator and other tools during this time frame. However, many doubt about this and they raise several questions not only with the use of the multi timeframe forex indicator but the whole strategy as well.
The questions raised include which among the intervals should be used along with the length of the period from which the time frame will work. There are several other queries but they are often solved using multi time frame Metatrader indicator optimization. There are options here including building a system that can be tested later for each time frame beginning at one minute up to a day. From here, one can choose the best. However, this can be very tricky, which is why one should choose to use all possible time frames instead of only one.
The classic Metatrader indicator can produce signals in the figure of one buy or sell for a single time. If you will be using voting based Metatrader indicator, you can blend the signals originating from the different time frames for only one Metatrader indicator, which will stand for the result of the selection of the intervals for buying and selling. To construct a multi time frame Metatrader indicator, there are four stages involved here. First, you will have to define the rules for buying and selling. Next is to generate the signals from the different intervals. Third is to sum up the indicators into a composite Metatrader indicator. The last one is normalization of the indicator, which is done by dividing the calculated sum by the amount of timeframes used.
Using multi time frames for your trading process will allow you to evaluate a currency pair. Therefore, one has the ability to improve his profits. In addition, the trader can identify the support and resistance levels as well as the strong readings for entry and exit. It is important that you understand the essence of multi time frames and how you can benefit with this strategy. The reality is this: there is no perfect model for intervals. However, you can always have an above average approach for time frames.
MULTI-TIMEFRAME METATRADER INDICATORS
Learn more about MULTI-TIMEFRAME METATRADER INDICATORS
MetaTrader Indicator HeikenAshi+
MetaTrader Indicator i-MultiRVI
Best regards,
BJF Trading Group inc.
