Market Condition Evaluation based on standard indicators in Metatrader 5 - page 20
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Lyrical depression.
So, when to trade?
For the next few days/weeks we will discuss MTF systems (multi timeframe systems), account protection features (irrespective off how many EAs you are using inside your one metatrasder instance - there are some features which can protect your account), Sharpe (how many ways of calculation, meaning of it and why we need it) and some more.
More to follow.
MTF systems.
Just to start the description of this kind of systems - please read this great interview: Interview with Dr. Alexander Elder: "I want to be a psychiatrist in the market"
Did you read book "Trading for a Living" by Dr. Elder? Especially about Triple screen trading system? Yes, it is fully related to Multi TimeFrame (MTF) systems and it is one of the first MTF systems in the world which was developed in about 1980:
The factor of five in choosing timeframes. Decide which timeframe you want to trade and call that intermediate timeframe. The long-term timeframe will be 5 times longer and the short-term timeframe 5 times shorter than the intermediate timeframe.
First Screen (long-term timeframe) – Market Tide
The first screen uses trend-following indicators to identify a long-term trend. The original system uses the slope of the MACD-Histogram to identify the market tide. The slope is defined as the relationship between the two latest bars. The upturns and downturns that occur above or below the centerline give better signals than the opposite. You could also use a simple 13 candles exponential moving average to define where the trend is going. The principle is the same: first screen enables you to decide if you will go long or short on second screen.
Second Screen (intermediate timeframe) – Market Wave
The second screen applies oscillators to the intermediate timeframe chart in order to identify deviations from the first screen chart. When the long-term timeframe trend is up, intermediate timeframe declines point to buying opportunities. When the long-term timeframe trend is down, intermediate timeframe rallies point to shorting opportunities. Force index and Elder-ray are good oscillators to use with Triple Screen, but Stochastic and Williams%R also perform well.
Third Screen (short-term timframe) – Intraday Breakout
The third screen uses intraday price action to pinpoint entry points. The third screen does not require a chart or an indicator. It uses a trailing buy-stop technique when the long-term timeframe trend is up while the intermediate timeframe is down to catch upside breakouts. On the other side, it uses a trailing sell-stop technique when the long-term timeframe trend is down while the intermediate timeframe is up to catch downside breakouts.
So technically, when the conditions you are looking for are met on the First and on the Second Screen, place a buy (or a sell order) on the third screen one tick above (or below) the high (or the low) of the last closed candle on the INTERMEDIATE TERM TIMEFRAME.
Keep moving your buy-stop (or sell-stop) for each subsequent candle until stopped in or until the trend on the long-term timeframe reverses therefore cancelling its initial signal.
Just to start to develop the system using MTF indicators - we can experiment with some existing MTF indicators. There are few good indicators which we can start with
I am suggesting everyone to try to use those indicatotrs in MTF settings by trading on demo account. It does not matter: you will be in profit or loss. It is matter about felling concerning how to trade MTF indicators and how to use them. After some practics so you will have one question: "are MTF indicators repainting?". Not, they are not repainting. They are continuing paiting :) But it is the other story and the other examples.
That's all news.
Just to start to develop the system using MTF indicators - we can experiment with some existing MTF indicators. There are few good indicators which we can start with
I am suggesting everyone to try to use those indicatotrs in MTF settings by trading on demo account. It does not matter: you will be in profit or loss. It is matter about felling concerning how to trade MTF indicators and how to use them. After some practics so you will have one question: "are MTF indicators repainting?". Not, they are not repainting. They are continuing paiting :) But it is the other story and the other examples.
That's all news.
So, this is MTF chart with Maksigen:
How to install? Download and install/compile all the indicators from CodeBase (see links above), and use template attached.
How to install template after downloading/placing/compilling all the indicators? Download template from this post, place it in template folder (for example - to C:\Program Files\MetaTrader 5\Profiles\Templates), open M1 chart, right mosue click on the chart and select Templates - [our template]
Just something interesting which is going on for right now: breakour for USDCHF H1 and ranging breakdown for EURUSD H1:
And some more about USDCHF - do you see criss-cross trendlines on the chart? So, if the price will break upper trendline so we may have some local breakout. Nearest resistance line in this case will be 0.9248 and next one is 0.9257
And some more about USDCHF - do you see criss-cross trendlines on the chart? So, if the price will break upper trendline so we may have some local breakout. Nearest resistance line in this case will be 0.9248 and next one is 0.9257
This is whole the thread about breakout :)
Breakout may be catchen
All the indicators with templates were uploaded to thisthread as the links to CodeBase and so on.
As to previous image - I described that I am not professional with patterns but it is some kind of price pattern when trendlines are creating criss-cross. if they price will create this criss-cross from up to down so it will be downtrend (may be - breakdown), if the price will break this criss-cross from down to up so it may be good uptrend.
I am trading those breakout/breakdown on the other thread uploading the results. And I keep this thread just for market condition evaluation only.