Archive for the ‘metatatrader indicators’ 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
MT4 Indicators
From all of the available MT4 indicators, the aim is to select the best collection of MT4 indicators.
The key here is to attempt to create an ideal combination of MT4 indicators. Ideally, the best combination of MT4 indicators will mean that each one will provide different data as to how the market is operating and reinforce not just repeat signals provided by other MT4 indicators. In situations where there are at least a couple of MT4 indicators showing exactly the same price information this will rarely improve your trades.
Although this is known as “signal confirmation”, it’s practically more or less just the same information and should be referred to as ‘duplication’ instead of ‘confirmation’. This situation intensifies when there is cash to lose…
When you are in the position of just haphazardly selecting MT4 indicators for technical analysis, it’s likely that you will find ones with the same sort of studies.
How are you able to avoid this happening?
It’s best for the dealer to first understand the sort of MT4 indicator they are using.
Here the main categories of MT4 indicator:
1st MT4 indicator - Trend indicators when trading Forex, these show three main price movements:
Up, Down and Sideways
These trend indicators will assist you when looking to determine the overall main direction, or trend, of movements in price by smoothing out the price data throughout a specific time period. Or, these indicators permit dealers to visualise the market trends
2nd MT4 indicator - Volume indicators
These will be used to specify the degree of interest the investor has in the market. A high volume, typically approaching key market levels, tends to suggest that a new trend is likely, whereas the lower volume means dealers are feeling a little uncertain and not bothered about that specific market.
When trading Forex, the volume data means the total quote activity over a particular period in time.
3rd MT4 indicator - Momentum indicators
When trading Forex, this reports the pace at which prices move throughout a specific time frame.
These indicators will simultaneously follow how strong a trend is while it moves over a time period; the momentum peak will be seen as the start of a trend and ends at the lowest point.
4th MT4 indicator - Volatility indicators these report the magnitude and size of any fluctuations in price.
Throughout any market, you will find times of increased volatility (high intensity) and decreased volatility (low intensity). Such instances arrive in waves; the lower volatility will be usurped by a higher intensity and eventually following a while of higher volatility you will find a stretch of lower volatility etc.
These indicators of volatility report how intense any price fluctuations are and can offer a closer view of the levels of activity within the market.
5th MT4 indicator - Cycle indicators
Any market cycle is defined by a range of repeating patterns.
Normally these patterns will be dictated by specific events in the market like changing seasons, counts from the day and theories about the market etc.
Dealers should try to refrain from over-using the MT4 indicators within the same section.
You will find that you can easily spot the MT4 indicators from the same category.
Putting a selection of indicators in a chart, the similar MT4 indicators will start to demonstrate all the same behaviours.
Seeing the peaks and troughs at the same times will pretty much mean they will be giving up the same type of information. For example, the RSI, Momentum indicator and Ultimate Oscillator will also display similar behaviour. For this reason, you should pick one and ignore the rest.
By looking to follow these fairly basic principles for selecting the most appropriate MT4 indicators, you will be applying the same method of thinking as the most experienced Forex dealers.
Tags: mt4 indicators
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.
Use of the Hurst Exponent in Technical Analysis
There are many reasonable questions, which may arise during forex trading, and one of them concerns the possibility to predict a given financial time series in advance; you should decide whether it is worth trying to forecast its development and model the data.
The Hurst Exponent allows to estimate the time series predictability and express it numerically. In other words, the Hurst Exponent allows you to understand whether a time series has a tendency to regress to a longer term mean value, or it has a tendency to “cluster” in a direction.
The algorithm of the Hurst Exponent is based on the hypothesis that the time series is a pure fractal, but it is not always right in most cases. Therefore, this is the reason of the Hurst Exponent being an estimate and not a definitive measure.
Anyway, everything abovesaid is not very important. The main advantage of the Hurst Exponent in technical analysis is the possibility to use the Hurst Exponent as a tool for classification of time series in terms of predictability.
Explanation of the Hurst Exponent
The Hurst Exponent values lie in range between 0 and 1.
• If a Hurst Exponent value H is close to 0.5, it means that there is a fractional Brownian motion time series or a random walk. There is no correlation between current and future elements in a random walk, therefore, the probability of future return values moving in one of directions (up or down) makes approximately 50%. As you see, prediction of such type of time series is almost impossible.
• If a Hurst Exponent value H lies between 0 and 0.5, it means that there is a so-called “anti-persistent” time series. In this case a decrease will occur after an increase, and vice versa. In other words, you may call such behavior “mean reversion”; in this case, future values will tend to return to a longer term mean value. The closer H is to 0, the stronger this “mean reversion” is.
• If a Hurst Exponent value H lies between 0.5 and 1, it means that there is a so-called “persistent” or trending time series. It means that in case of decreases (or increase) in the time interval from [t-1] to [t] there is a high probability of decreases (or increase) in the time interval from [t] to [t+1]. It means that an increase will follow an increase, and a decrease will follow a decrease. The closer H is to 1, the stronger the trend is. Persistent time series are the best time series for prediction in comparison to the previous two categories.
It should be mentioned that there is a difference between volatility and the Hurst Exponent. For example, an index or a fund can have an H close to 0.5 and a relative low volatility at the same time. As a rule, mature markets are less predictable and more efficient than emerging markets, and that is why they very often have Hurst Exponents closer to 0.5.
So, you can use the Hurst Exponent for classification of time series, and it is a very useful ability, for example, for making a list of stocks with greater short term predictability. For instance, you could make a list of stocks with particular Hurst Exponent values, and then examine and study their profit generating characteristics. You could close all investment positions in a particular stock, if its Hurst Exponent dropped below a certain threshold value.
You also can use the Hurst Exponent in combination with neural networks or technical indicators. In this case the Hurst Exponent will help you to make priorities and decide which assets to ignore and which ones to forecast.
About the Hurst Exponent
The Hurst Exponent occurs in several areas of applied mathematics, including fractals and chaos theory, long memory processes and spectral analysis. Hurst Exponent estimation has been applied in areas ranging from biophysics to computer networking.
The direct connection of the Hurst Exponent to the fractal dimension of a process allows to measure the roughness of the process. For instance the roughness of coastlines has been measured by means of the fractal dimension. There are other areas of application of the fractal dimension: measurement of neuronal growth in medicine, the simulation of mountains in computer graphics, and mold colony’s boundaries measurement in biology
As a rule, the Hurst Exponent is not calculated, but estimated by means of several different techniques. From the other hand, assessment of the accuracy of the estimation is not a simple task. The Heisenberg Uncertainty Principle also limits fidelity and accuracy of H.
The estimation of the Hurst Exponent can be done by means of calculating the average rescaled range (R/S) over multiple overlapping regions of the data. As a rule, it is possible to use only regions with lengths larger than 31. The results of such approach are quite robust, standard deviations are small, but there is a negative side, too: the estimated value is a bit biased.
Manual forex trading strategy based on Hurst Exponent
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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
BJF Trading Group inc.
http://iticsoftware.com
Metatrader Indicator OBV Divergence Generation 3
OBV Metatrader Indicator
OBV indicator will detect when a currency is being accumulated by a large number of buyers or sold by many sellers.
Calculation:
If today’s close is greater than yesterday’s close then:
OBV(i) = OBV(i-1)+VOLUME(i)
If today’s close is less than yesterday’s close then:
OBV(i) = OBV(i-1)-VOLUME(i)
If today’s close is equal to yesterday’s close then:
OBV(i) = OBV(i-1)
Where:
OBV(i) — is the indicator value of the current period;OBV(i-1) — is the indicator value of the previous period;
VOLUME(i) — is the volume of the current bar.
Metatrader Indicator OBV Divergence
Very strong signal for open position is fractal divergence between OBV and price. Divergence is disagreement between the indicator and price. Metatrader Indicator OBV Divergence Generation 3 detects fractal divergence and shows on divergence zone on graph and indicator. This metatrader indicator based on new optimized and reliable algorithm to detect divergence patterns. Indicator does not repaint and arrows painted above/below the open bar and not in the past. The indicator shows a high percentage of correct signals at the period of flat market. Also with high probability we can determine the beginning and end of the trend.
BJF Trading Group inc.
http://iticsoftware.com
Metatrader Indicator Building Essentials
Knowing all of the essentials for building a forex indicator is important, especially if you really want as much use out of it as possible. There are many people who have built these indicators to help with the everyday tasks involved in trading in the foreign exchange market. When you have a Metatrader indicator, you will be able to take into consideration all of the different environmental and fundamental factors that can affect your trades, and therefore how much risk you are taking. The charts involved in this type of building will give you vital information, which can ultimately be used to analyze certain market trends, and give you valuable information that you would otherwise not have.
The basic idea behind these types of indicators is that with the right one, you will be able to see future directions that price movements will take. This in turn will give you a nice edge on everyone else who is not able to predict such things, and make decisions on trades accordingly. However, prices can only be predicted within a certain period of time, and it depends on a number of factors which can easily change the course of things. There are a few key things that traders try to predict when it comes to prices. One of these things is the support and resistance levels.
One of the reasons that support and resistance levels are so important is because they are the areas which determine whether or not a certain price changes direction. Time is something else that traders attempt to predict, and not always successfully. Your whole goal of building such an indicator is to predict the general direction a price is headed under certain conditions. There are all of the different kinds of indicators, each of them different in their own way. There is almost always an indicator present which represents momentum levels that are crucial for you to examine when trying to make predictions on where prices are headed.
When it comes to making accurate predictions, you have two different choices with regards to indicators. There are hybrid and unique indicators, each serving their own unique purpose. If you want to develop a unique indicator, you will need to know that they can only be created with core element chart analysis. If you want a hybrid indicator, then you will want to keep in mind that you will be able to use both existing indicators and certain core elements.
Those who want to build a unique indicator will want to consider all of the different components involved, starting with the patterns. The purpose of these is to repeat price sequences of a certain period of time. You will find that most Metatrader indicators use patterns as a way of showing where future prices are going. Another component of these indicators is mathematical functions. They have a very important role in averaging prices and also doing more complex things. It’s important to consider all of these things, so you will have a good idea as to how to go about building your indicator.
BJF Trading Group inc.
http://iticsoftware.com
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.
A Primer on Andrew’s Pitchfork Application on Forex Trades
Andrew’s Pitchfork is invented by the well-known and celebrated market master, Dr. Alan Hall Andrews. This is a technical indicator that can be used by forex traders as well as those that are involved in the other markets. It can help a trader identify and measure the general cycles that have an effect on the fundamental market activities. There are two different applications in which you can make use of the indicator on your trading technique. These are the approaches in which you can trade within and outside the lines.
By Definition
Before we tackle the two approaches, it is vital that you know first what Andrew’s Pitchfork is. Basically, this is called the median line studies and is similar to the support and resistance indicator. The inventor of this believed that the price of the currency in the forex market would descend to the median line almost eighty percent of the time. The remaining 20% is for the change or the fluctuations in the outlook accounting. Thus, the theory states that whether there are changes in the market trend, the overall market performance will remain unaffected. To know that the current trend will be replaced by a new one, the supply and demand elements will shift and the prices of the currencies will drift. These situations are the key to finding the trading opportunities for beginner and experienced forex traders. If you want to increase your chances of getting accurate trades, the Andrew’s Pitchfork indicator will help you win your game.
The Application
Before you use this technical indicator, you are required to classify the highs and lows that appeared on the chart. Now, draw the pivot at the peak and label it. After the pivot, you will need to make out the trough and the peak, which are both at the right side of the pivot. You have now isolated the high and low with the pivot point. This time, you can place the application. It all begins at the first pivot point, which is also the median line. The peak and the trough will be the support and resistance for the trend of the market.
The Two Approaches
As previously stated, there are two approaches which can be applied for the Andrew’s Pitchfork technical indicator. The first one is to trade within the lines. To profit from this strategy, you will need to understand how exactly it works. For instance, your currency pair is USD/GBP and in the indicator, it shows that it has moved away from the median line towards the pitchfork’s top resistance. Considering these indications, a trader will only benefit from it if he places an entry at the uppermost part of the signal line. Of course, rigorous money management will always help along with a correct stop loss strategy. Even as the price of the currency moves toward the median line once again, the momentum will remain downward. This means that there is a great chance of getting close to a profitable position of 1000 pips during the trading process.
On the other hand, to trade outside the lines is yet another approach that you can apply using the technical indicator. Although this is less recurrently used, they are most considered for long term trends. This is a little bit more complicated than the other approach. You have to understand that the theory here states that the price action will descend to the median line but it can also be assumed that the market has decided that there will be a new trend coming. This can lead to losses on the trader’s part. To avoid this, you can add parameters to secure the retracements and close your position early.
