Color Coded AMA? - page 2
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Hi Hellkas,
Indicators template and strategy and chat room (were trades are monitored all day long) are explained in this topic
http://www.strategybuilderfx.com/forums/showthread.php?t=16299
friendly regards...iGoR
PS. Indicators and template are to be found in posting # 2. There are 2 differant templates, 1 for the major 3 pairs and 1 for the JPY pairs.Hi iGoR...
Many thanks iGoR... I'll read yours thread that to the first sight it seems very good...
Best regards
it is my questions
when we have this parametres....Signal change colour during bar?
i think that signal stay same because it give signal only sometimes with this paramatres
yours opinion?I would like to explain something about indicators that change during a bar because I read this remarks very often.
If the price is changing in the current bar don't you think it is completaly normall that the indicator changesalso ?...
Lets say that a 60 min. bar starts...and price goes up for 100pips...then whatever kind of indicator has to react on that fact in a positive or bullish way. If in that same bar price comes down 100pips so to the same level from were it started it should show nothing different to the previous bar because price is at the same level of the close of the previous bar. And if in that very same bar price fals down with 100pips, the indicator should react on that in a negative or bearish way.
Sometimes I see people ask: is it possible to build or change this or this indicator that it would not change color on the current bar...but that is like asking: ...could you make that the chart shows an up bar even if it is a down bar.
So as long as a bar is not completaly closed, whatever kind of indicator can turn each way...(higher then previous bar when price goes up....the same as the previous bar when price is the same as the previous bar or the indicator turns negative when price is lower then previous bar)....
Offcourse you have some bad or unreliable indicators who work with hindsight or who repaint the past. These kind of indicators can change there reading to 4 or 5 bars back.
But every normall indicator should react on the price changings of the current bar.
friendly regards..iGoR
Thanks Igor, i completely understand what you mean. you are correct, small changes to the slope...cannot be seen by the naked eye. i have another request...i hope i am not keeping you away from your trading. can you include an external variable to the AMA....through which we can specify the value of minimum slope change for the dots to change color. by this we can filter out very small changes in slope..and thus false signals. i tried changing the value of dk variable....but then the dots dn't appear on all the bars. i hope you can understand what i mean. thanks for everything.
regards
Hi Gabroo_munda,
What apears to be flat to the naked eye doesn't mean that matematicly it is flat. On the image I placed triggerlines. They change color when the slope of the triggerlines changes. The indicator seems flat to the naked eye (white elips) but matematicly it reacts on the smallest price change.
So if you would find someone who can color the slope of the AMA indicator it will exactly do the same as were you see the dots change color.
The AMA indicator has the great capacity to stay flat in some market conditions. Meaning that when price stayes flat or horizontal the AMA doesn't want move towards the price were other MA's are moving back to the price. If that sideways period takes to long, every other MA and price will meet and will cause a lot a false crossings to happen. But the AMA doesn't do that it stays on a certain level and stays horizontal. But as I said, that horizontal to the naked eye is not the same as been perfectly horizontal in real matematic values. The smallest movement of price will have a very small impact on the value of every kind of MA even the AMA...
friendly regards...iGoRThanks Igor, i completely understand what you mean. you are correct, small changes to the slope...cannot be seen by the naked eye. i have another request...i hope i am not keeping you away from your trading. can you include an external variable to the AMA....through which we can specify the value of minimum slope change for the dots to change color. by this we can filter out very small changes in slope..and thus false signals. i tried changing the value of dk variable....but then the dots dn't appear on all the bars. i hope you can understand what i mean. thanks for everything. regards
I know perfectly what you mean. Been there many times on that road.
Because it seems the most logical thing to do BUT every thing you change to something has emmidiatly an negative impact on something else. In this case if you would put another variable or MA or something to smooth out those small price changings on the AMA, the negative aspect that you will get is the laging effect. Your new line will be slower in its reaction then the previous one. So the crossings with price or with a second AMA or with an other MA will be slower then the original line. The only thing you can do is take a bigger period value of the AMA but the effect will also be that the AMA react slower. So there is no solution to that...or you take a small value but with lots of small false signals or big values with a lott less false signals but reacting much slower to price...if you think of this in a logical way you will understand that...
And maybe you can think now: maybe there is another way if we would ......... but believe me there is none.....the fastest reaction is price itself...everything you try to filter out of price becomes slower then price. This AMA is already a great tool because of the caracter of this indicator but there is nothing you can improve to it. Like I said I work with this indicator for many years for my professional trading and I took the formula of this indicator completaly appart (like the engine of a car) and look to every aspect of the formula and there is nothing to improve...
I can sujest to take also a look to the caracter and aspects of the russian color indicator also now as HMA or Hull Moving Average indicator (it changes color with slope). With metastock professional I took both formulas and start to mix them to have aspects of them both. But then again the new indicator was an average of both indicators and this way it started to lose the great aspects of each individual indicator.....
friendly regards...iGoR
Thanks for your honest opinion. i completely understand what u mean. you are right ....its a catch 22 situation. anyways..i'll try to incorporate the AMA as it is into my system. thanks for everything.
regards
AMA set version of ama ama_set.mq4