Market Condition Evaluation based on standard indicators in Metatrader 5 - page 225
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Just found some explanation about filters (the indicators which are used to filter false signals and to avoid big losses).
1. Demark
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Filters indicators
Sergey Golubev, 2005.10.11 09:16
The indicator of Demark (DeMarker).
It is standard indicator for MetaTrader.
This indicator is based on the comparison of the period maximum with the previous period maximum. The received maxima are summarized. The indicator of Demark is intended for revealing the areas with high and low risk for purchase (sale). It registers the areas of price exhaustion, which usually coincide with price peaks and hollows. The indicator changes from 0 up to 1. When the indicator falls below 0.3, the turn of the prices upwards is expected. When the parameter of the indicator rises above 0.7, the turn of the prices downwards is expected.
2. Zigzag
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Filters indicators
Sergey Golubev, 2005.10.16 14:04
Zigzag indicator is the good filter as well.
Although, zigzag indicators are not forecasting the movement of the price and do not showing any line in the charts based on real movement data.
But anyway zigzag is the filter.
3. Volume
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Filters indicators
Sergey Golubev, 2005.10.26 07:11
An other indicator which may be used as a filter is Volume.
Volume is a standard indicator and everybody is able to find it in MetaTrader any version.
Volume is simply the number of shares (or contracts) traded during a specified time frame (e.g., hour, day, week, month, etc).
Low volume levels are characteristic of the indecisive expectations that typically occur during consolidation periods (i.e., periods where prices move sideways in a trading range). Low volume also often occurs during the indecisive period during market bottoms.
High volume levels are characteristic of market tops when there is a strong consensus that prices will move higher. High volume levels are also very common at the beginning of new trends (i.e., when prices break out of a trading range). Just before market bottoms, volume will often increase due to panic-driven selling.
Volume can help determine the health of an existing trend. A healthy up-trend should have higher volume on the upward legs of the trend, and lower volume on the downward (corrective) legs. A healthy downtrend usually has higher volume on the downward legs of the trend and lower volume on the upward (corrective) legs.
4. WPR
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Filters indicators
Sergey Golubev, 2005.10.26 07:17
Williams %R (WPR) is well-known filter. It is the standard indicator as well.
Williams' %R (pronounced "percent R") is a momentum indicator that measures overbought/oversold levels. Williams' %R was developed by Larry Williams.
The interpretation of Williams' %R is very similar to that of the Stochastic Oscillator except that %R is plotted upside-down and the Stochastic Oscillator has internal smoothing.
To display the Williams' %R indicator on an upside-down scale, it is usually plotted using negative values (e.g., -20%). For the purpose of analysis and discussion, simply ignore the negative symbols.
Readings in the range of 80 to 100% indicate that the security is oversold while readings in the 0 to 20% range suggest that it is overbought.
As with all overbought/oversold indicators, it is best to wait for the security's price to change direction before placing your trades. For example, if an overbought/oversold indicator (such as the Stochastic Oscillator or Williams' %R) is showing an overbought condition, it is wise to wait for the security's price to turn down before selling the security. (The MACD is a good indicator to monitor change in a security's price.) It is not unusual for overbought/oversold indicators to remain in an overbought/oversold condition for a long time period as the security's price continues to climb/fall. Selling simply because the security appears overbought may take you out of the security long before its price shows signs of deterioration.
An interesting phenomena of the %R indicator is its uncanny ability to anticipate a reversal in the underlying security's price. The indicator almost always forms a peak and turns down a few days before the security's price peaks and turns down. Likewise, %R usually creates a trough and turns up a few days before the security's price turns up.
(used Steven B. Achelis "Technical analysis from A to Z")
5. Stochastic Oscillator
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Filters indicators
Sergey Golubev, 2005.10.26 07:32
An other standard filter indicator is Stochastic Oscillator
1. Sto.chas.tic (sto kas'tik) adj. 2. Math. designating a process having an infinite progression of jointly distributed random variables.
--- Webster's New World Dictionary
The Stochastic Oscillator is displayed as two lines. The main line is called "%K". The second line, called "%D" is a moving average of %K. The %K line is usually displayed as a solid line and the %D line is usually displayed as a dotted line.
There are several ways to interpret a Stochastic Oscillator. Three popular methods include:
- Buy when the Oscillator (either %K or %D) falls below a specific level (e.g., 20) and then rises above that level. Sell when the Oscillator rises above a specific level (e.g., 80) and then falls below that level.
- Buy when the %K line rises above the %D line and sell when the %K line falls below the %D line.
- Look for divergences. For example, where prices are making a series of new highs and the Stochastic Oscillator is failing to surpass its previous highs.
The Stochastic Oscillator has four variables:
1. %K Periods.
This is the number of time periods used in the stochastic calculation.
2. %K Slowing Periods.
This value controls the internal smoothing of %K. A value of 1 is considered a fast stochastic; a value of 3 is considered a slow stochastic.
3. %D Periods.
This is the number of time periods used when calculating a moving average of %K. The moving average is called "%D" and is usually displayed as a dotted line on top of %K.
4. %D Method.
The method (i.e., Exponential, Simple, Time Series, Triangular, Variable, or Weighted) that is used to calculate %D.
(used Steven B. Achelis "Technical analysis from A to Z")
6. ADX
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Filters indicators
Sergey Golubev, 2005.10.26 10:50
Adx
An other indicator which may be used as a filter is Directional system (ADX).
Directional system was developed by J. Wilder in the middle of 1970s as an addition to the system PARABOLIC SAR, and then it was advanced by a number of the analysts. ADX defines the tendency and shows, whether it moves quickly enough to follow it. ADX helps to take benefit, being still in the middle of important trends.
This indicator promotes searching of tendency force. If ADX raises, it means that the market tendency becomes stronger. At such times, it is desirable to conclude the bargains only in the direction of the tendency. When ADX falls, it means that the tendency is questionable.
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BRAINWASHING SYSTEM/ASCTREND SYSTEM
Sergey Golubev, 2013.05.12 16:25
This is the thread about Brainwashing system. We will start with original version of this system and will improve it later.
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Just something about the history. There are 3 famous signals system (manual trading systems based on signal indicators): Asctrend, BrainTrend and Brainwashing. First two system were already explained and developed by indicators and EAs. So, we are going to discuss the last signal system: Brainwashing.
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Just for information:
ASCTREND SYSTEM
Asctrend System, the beginning:
ASCTrend system, the beginning, part #1
ASCTrend system, the beginning, part #2
ASCTrend system, the beginning, part #3
ASCTrend system, the beginning, part #4
Digital ASCTrend (Digital Filters with ASCTrend system combined).
The Theory.
Manual Trading statements
Second version of this manual trading system and for now - asctrend indicator together with NRTR indicator
First version of AsctrendND EA.
Next version of AsctrendND EA (verion 1.02) with TrendStrength filter added.
BRAINTRADING SYSTEM
How To Create Your Own Manual Trading Signal System Based On Indicators From MT5 CodeBase - Instruction For Non-Programmers
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Ichimoku
The beginning
After
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Juast found about how to use Marsigen indicator -
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Market Condition Evaluation based on standard indicators in Metatrader 5
Sergey Golubev, 2013.01.07 18:15
Just some more explanation about Maksigen indicator.
Those levels are possible buy stop and sell stop orders:
And whole the story -
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Market Condition Evaluation based on standard indicators in Metatrader 5
Sergey Golubev, 2013.09.01 21:06
This my post? red dotted lines are for possible sell stop trade, blue dotted lines are are possible buy stop ...
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Anyway - I just copied some latest summary from this thread :
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Market Condition Evaluation
story/thread was started from here/different thread
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The beginning:
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Market condition
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3 Stoch MaFibo trading system for M5 and M1 timeframe
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PriceChannel ColorPar Ichi system.
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MaksiGen trading system
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Merrill's patterns are on this page.
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Divergence - how to use, explanation and where to read about.
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Scalp_net trading system
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MTF systems
more to follow ...
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MA Channel Stochastic system is here.
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Ichimoku
The beginning
After
Here we give a quick overview of the Ichimoku components. Next video will talk about reading the market and the signals generated by the Ichimoku. Also we will learn how to trade this system in the next video so keep an eye out!
The Ichimoku chart is made up of five separate elements which are designed to be considered together as a complete picture to provide a perspective on the equilibrium of the current price. These are:
A moving average of the highest high and lowest low over the last 9 trading days.
A moving average of the highest high and lowest low over the last 26 trading days.
The average of the Tenkan Sen and Kijun Sen, plotted 26 days ahead.
The average of the highest high and lowest low over the last 52 days, plotted 26 days ahead.
The closing price plotted 26 days behind.
The area between the two Senkou Spans is called the Kumo (Cloud).
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Press review
Sergey Golubev, 2018.05.30 16:24
USD/CAD Intra-Day Fundamentals: Overnight Rate, BoC Rate Statement and range price movement
2018-05-30 15:00 GMT | [CAD - BoC Overnight Rate]
if actual > forecast (or previous one) = good for currency (for CAD in our case)
[CAD - BoC Overnight Rate] = Interest rate at which major financial institutions borrow and lend overnight funds between themselves.
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From official report :
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USD/CAD M1: range price movement by BoC Overnight Rate news event
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Chart was made on MT5 with Brainwashing system/AscTrend system (MT5) from this thread (free to download) together with following indicators:
Same system for MT4:
Forum on trading, automated trading systems and testing trading strategies
Press review
Sergey Golubev, 2018.06.14 11:07
AUD/USD Intra-Day Fundamentals: Australia Employment Change and range price movement
2018-06-14 02:30 GMT | [AUD - Employment Change]
if actual > forecast (or previous one) = good for currency (for AUD in our case)
[AUD - Employment Change] = Change in the number of employed people during the previous month.
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From official report :
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AUD/USD M15: range price movement by Australia Employment Change news event
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Chart was made on MT5 with Brainwashing system/AscTrend system (MT5) from this thread (free to download) together with following indicators:
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Same systems for MT4/MT5:
The beginning
After
Market condition articles -
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Market Condition
The beginning:
After
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