Demark (TD) Moving Average - page 6
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MA on DeMarker Arrow - indicator for MetaTrader 5
The subwindow displays the usual indicator 'DeMarker' and smoothed with the help of 'Moving Average'. 'Arrow' objects are displayed at the intersection.
Hi everyone,
First off I just want to say that I'm not a fan of anything that lags, and that includes (most) moving averages. I had the luxury of using the below described at my last job, but not anymore. I was surprised to see that I couldn't find it anywhere for metatrader, so I was hoping someone might take interest. I'm not a programmer, but the logic for this seems very simple, and the results have been outstanding when I have used it; I would be thrilled if someone would like to tackle this.
During nontrending markets, the moving average is not displayed, but when a breakout opportunity is prevalent, the moving average is installed on the chart, and it can be used quite easily as a guide for the trend, a filter for false breakouts, as well as a strong indication for when to exit. The rules are fairly simple, and are explained as follows:
If a low has been formed that is GREATER than all previous 12 lows, then a 5 bar moving average of the lows is calculated for a period of 4 bars. If subsequent lows are greater than and previous 12 bar lows as well, then the process of calculating a 5 bar moving average of the lows for four bars forward (incl. current) is continued. Once this process fails to occur (13 day higher low), the moving average is extinguished. Reverse this logic for a moving average of the highs.
How to trade it:
For entry signals:
If a bar closes above an ACTIVE moving average of the highs, buy.
Reverse for sells.
For exit signals:
This is where it works best and can be used as a great addition to any trading system. The moving average will "hug" your trend. If, at any point, a bar closes above or below an active moving average, or the moving average vanishes, exit the position.
If anyone needs any more info please ask. I have tons. Would love to see this coded.
Successful trading,
S.
PS - Attached, lots of goodies for DeMark peoples. Dont have too much fun. Thx!