How to pick up trends in the 'value zone' - MQL4 and MetaTrader 4

FXSamurai 2008.08.31 11:05 #21

Very powerful, indeed. This MA-Ribbon indicator is really a tremendous visual aid.

I have been researching MA crosses for years, and worked out tons of systems. This indicator, after reading chapter 1 from A. Elder's "Sell & Sell Short" (posted in a previous post), just immediately made the "value zone" pop-out in a way that really solved for me a major issue such as how to pick up a trend after a MA crossing.

The default setting of SMA 13 and 26 also really helped, I must say. Although generally I prefer to use EMAs, for a while I have been on the look-out for a good SMA set-up, as I really believe that the more simpel indicators are, the more effective and realiably they can be used.

Using a SMA 13 with 26 (on close) there are many great signals on the crosses, and on retraces into the "value zone".

I also found it useful to use a SMA 52, to add precision and filter out insignificant or bad signals.

Actually, mladen, if you have some more time to "fool around", it would be great if you'd add a MA_Ribbon indicator using 3 MAs, with the slow ribbon (of SMA 26 and 52) showing behind the fast ribbon.

Here is an example of how to pick up trends in the "value zone".

A signal occurs on a low/high when stochastic 8-3-3 D moves below/above 50, and stochastic 16-6-6 K is below/above 61.8/38.2. Entries occur when also stochastic 16-6-6 D is below/above 76.4/23.6. If on the signal SMA 13 points down/up with SMA 26 also pointing down/up or being equal to the previous tick, then there is a good short/long signal. If SMA 13 points up/down, and/or SMA 26 is pointing up/down (not just being equal to the previous tick), then there is a good long/short signal. (Note: although this signal is pretty good, it's NOT 100% bullet-proof just on its own. You'll have to tweak it and use some extra confirmations to make it suit your own way of trading and make it consistent).

Thanks for this indicator, mladen! I think I will keep using it for a very long time

Files:

ma_ribbon_example_01.gif 40 kb

Moving Average Looking for very basic Something interesting, old thread

FXSamurai 2008.08.31 11:11 #22

FXSamurai:
Actually, mladen, if you have some more time to "fool around", it would be great if you'd add a MA_Ribbon indicator using 3 MAs, with the slow ribbon (of SMA 26 and 52) showing behind the fast ribbon.

Actually, it's also possible to just throw two MA_Ribbons together.

Here's the previous example with TWO ribbons!