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Market condition indicators/tools

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Sergey Golubev
Moderator
100421
Sergey Golubev  

The first indicator (or indicators) for market condition was created by Igorad.

It is AbsoluteStrengthMarket_v1.1. It was described starting from this page to this one.

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Description of the color:

Blue: Up;

Red: Down;

LightBlue: Bear Market Rally;

Orange: Correction;

Yellow: Choppy;

White: Non Trade.

What is Bear Market Rally and Correction?

It is from here:

A temporary decrease during a bull market is called a correction; a temporary increase during a bear market is called a bear market rally.

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Explanation of the settings.

TimeFrame. It is timeframe. Because this indicator is MTF version so we may attach this indicattor to D1 timerame with W1 (10080) settings.

Then you will see the settings of AbsoluteStrength_v1.1 indicator (ASM indicator is working with AbsoluteStrength_v1.1 only).

Text on the chart. TextSize is size of the text on the chart. TextDelta is location of the text on the chart (change this TaxtDelta to have desiable location of the text on the chart to move the text for example). DisplaySets: display all the settings of ASM indicator on the chart.

IndValue. It is the location of the lines of the indicator on the chart. For example if we want to attach 3 ASM indicators with different Timerame settings in one separated window so we are doing the following:

- during the attaching first ASM indicator to the chart we should set Fixed miminum and Fixed maximum in custom indicator's window (you will see it during the attaching before pressing OK to attach). If we want to attach 3 indiators on the same window so we will set Fixed miminum=0 and Fixed maximum=4. Then we will locate every indicator: first indicator will have IndValue=3, second one: IndValue=2 and 3rd one: IndValue=1. Every indicators should have the same Fixed miminum and Fixed maximum. Attached is the template as an example.

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How to use.

If we are talking about market condition so we are talking about market condition of some particular day, or week, or month. It means that this ASM indicator is most usefull for H4, D1, W1 and MN1 timeframes. Of course we may use it with other timeframes as well but please note that this ASM indicator was designed for timeframes started from H4. To use it with M15, M5 timeframes for example we will need to cgange some settings of the ASM indicator related to AbsoluteStrength_v1.1 indicator.

Some example about how to use.

- Attach 3 ASM indicators to D1 timeframe in same separated window. Set first ASM indicator to current D1 timeframe (TimeFrame=0), second ASM indicator to W1 timeframe (TimeFrame=10080) and 3rd one for MN1 timeframe (TimeFrame=43200).

- We may consider uptrend on D1 if D1 ASM indicator's line is in blue color on close (previous) bar and W1 ASM indicator is in blue or lightBlue color. MN timeframe is optional.

- we may consider downtrend on D1 if D1 ASM indicator's line is in red color on close (previous) bar and W1 ASM indicator is in red or orange color. MN timeframe is optional.

- be comfortable with some other color: choppy market and not trading.

- if we are having choppy market condition on MN timeframe so it means that the trend direction are changing often on W1 timeframe so MN1 is optional.

- avoid trading on choppy (yellow color) and not trading (white color) market condition. For example: we are having uptrend on current D1 but choppy or not trading for W1: it means that we are not trading this day.

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Image.

We may see from the image attached abut how to use it.

Just some comments about the current market condition for GBPUSD D1:

- D1 - uptrend (on close bar);

- W1 is choppy market.

Conclusion: we are not trading GBPUSD today for trend followers trading systems. We may use some systems or EA which are good for choppy market. Of course the situation may be changes as we are having not trade on D1 and downtrend on W1 right now but it is on open bar and we will know exactly about it in the beginning of the next day (tomorrow when new D1 bar will be opened).

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Problems.

All the indicators are re-painting current open bar. All with no exception. This ASM indicator is MTF indicator so the current bars may be re-paint as well. So, please, for current timeframe use close bar only (previous bar). But if we attach indicator to D1 chart with W1 settings so current W1 bar may be re-paint as well. It is not visible on Monday and it is more related to the Friday for example (W1 bar is closed on Monday so it will not re-paint last close bar but we will still have open bar on Friday which will be closed next Monday). Thus, please, understand all difficulties and particularities working with MTF indicator. ASM is MTF indicator.

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Sergey Golubev
Moderator
100421
Sergey Golubev  

AbsoluteStrengthMarket separated version (ASM separated)

In some cases we need to analyze bullish and bearish trend separatedly from each other. It is for the traders doing more deep research. So, Igorad created AbsoluteStrengthMarket_v2.1 version (ASM separated version).

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Description of the color:

Blue: Up;

Red: Down;

LightBlue: Weak Up;

Orange: Weak Down;

Yellow: Choppy;

White: Non Trade.

Please note that this ASM separated is having different color interpretation than ASM combined. Why? As you see from the color description above this ASM separated does not have any correction (no Bear Market Rally and no Correction). Because what is correctional trend? It is bearish trend comparing with bullish and bullish trend comparing with bearish. But if we are analyzing bearish trend separatedly from bullish so we are having just the following:

Bearish Trend: Down, Weak Down, Choppy, Non Trade.

Bullish Trend: Up, Weak Up, Choppy, Non Trade.

And we are having two lines: one line is for bullish trend and the other line is for bearish trend.

Please note: this ASM separated version is for analyzing bullish and bearish trend sepaatedly from each other.

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Explanation of the settings and Problems are the same with previous post.

By the way, what is the Problems? It is not something which should be fixed. It is something which we must know if we want to use this indicator effectively.

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How to use.

It is the same with previous post with some exception: this ASM separated was designed to see bullish and bearish trends separatedly from each other. We need to in some cases just to analyze everything about bullish trend only, or about bearish trend only. Choppy and Non Trade are the same for both of course.

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Image.

Some example of how this separated indicators looks like we may see from the image.

Sergey Golubev
Moderator
100421
Sergey Golubev  

I changed the imaged attached to the post #100 for more understanding about lines (post #100 was updated concerning the images attached).

Thus, those ASM indicators are very first step to describe all market condition with all the particularities.

Why first step?

Because this ASM indicator does not have any forecasting possibilities: this ASM indicator can not tell us about market condition in the end of the week or in the next week for example. This indicator may describe the current market condition situation. besides we may backtest this indicator concerning past market condition on the history.

Next step will be creating the next generation of the market condition indicators with forecasting possibility. We are having some ideas about how to do it. But those next indicators will be different from this ASM and will be based on completely different systems.

I think we will stop with this market condition issue when we will create 3 or 4 different market condition indicators with very different forecasting possibilities about future market condition.

That's all about ASM.

Sergey Golubev
Moderator
100421
Sergey Golubev  

So, it was explanation about AbsoluteStrengthMarket indicators (ASM indicators).

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On previous posts we can see some images D1 timeframe together with ASM indicators. I am using this template/indicators to estimate the market condition sometimes.

Please find all the indicators and template for that (attached). D1 timeframe.

Files:
template.zip 12 kb
Sergey Golubev
Moderator
100421
Sergey Golubev  

Now D1 bar was opened on Alpari broker so we may analyze this template from previous post.

CADCHF.

We should open buy yesterday in the same time. I am not sure but may be it is too late today. May be not. Anyway, if we open buy yesterday so we should have +58 pips in profit now with 41 pips drawdown during the day.

Anybody is trading CADCHF and CADJPY?

CADJPY.

Not trading the 3rd day already: current D1 timeframe is in Not Trade condition (white color), other timeframes are in Choppy market.

Files:
cadchf1.gif 17 kb
cadjpy.gif 16 kb
Sergey Golubev
Moderator
100421
Sergey Golubev  

USDJPY: Not Trade.

EURUSD: we are not trading (D1 timeframe). Because on D1 timeframe we see just a correctional trend (on close bar) together with downtrend on W1 but we are not treding corrections on current timeframe.

GBPUSD: not trading the second day already.

USDCHF: uptrend just started now on D1 timeframe with correctional confirmation on W1. Price came near resistance line (boder of the cloud) but anyway ...

Files:
usdjpy_2.gif 15 kb
eurusd_3.gif 16 kb
gbpusd_4.gif 16 kb
usdchf.gif 16 kb
Sergey Golubev
Moderator
100421
Sergey Golubev  

AUDUSD and USDCAD: not trading today.

Anybody is trading USDSEK? Not trading today.

EURJPY, EURCHF and EURGBP: not trading. Will not post any image as you ay estimate by yourself using temlate posted on the previous posts.

Gold: uptrend.

Files:
usdsek.gif 16 kb
Sergey Golubev
Moderator
100421
Sergey Golubev  

And this template I am planning to use with new signals (see explanation on this page).

I think Ichimoku indicator is quite enough but we may use market condition indicator and few other indicators just to reduce the risk (and number of trades as well) and to use reasonable stop loss value).

Files:
eurusd_4.gif 25 kb
Sergey Golubev
Moderator
100421
Sergey Golubev  

It is the situation with USDJPY now using this indicator:

And EURUSD:

Files:
lepiricus
316
lepiricus  

This indicator and its developer, Igorad, are awesome. I have been demo/studying it for a while now.

I've tried to code an email alert in it, but I cannot get it the way I want too.

I would like it to send an alert/email when the square changes color and what time frame. For example: "ASM H4 has changed to choppy"

This dang this is so complicated my coding skills are not up to task.

I'm posting a screenshot on just one way you can use this indicator.

Below is a 1hr chart with a 1hr ASM above a 4hr ASM. If you just trade when the 1hr and 4hr agree and exit on a 1hr change from bullish to bearish etc you could of had +385 easy pips on gbp/jpy alone. I marked the sells areas with red lines and buys with blue.

There are a great many ways to use this fabulous indicator. I want to start using it live but I cannot use any indicator without an email alert because I must have it sent as text message to my phone so I don't miss any trades while being away from my desk, asleep etc.

So if anyone could find time to code an alert in it that would be fantastic

privatefr
42
privatefr  

AbsoluteStrengthMarket_v2.1. not working

I added this indi to my MT4 as downloaded but I got only an empty window. Any suggestion?

TIA

Pepe

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