Market Condition Evaluation based on standard indicators in Metatrader 5 - page 225

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Sergey Golubev
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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")

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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.

.. and more and more ...
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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.

==========

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. 

==========

 

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. 

  • trading on open bar' and 'trading on close bar' concept 
  • Re-enter: practical example about how to trade asctrend manually with re-enter options.

 Manual Trading statements  

Second version of this manual trading system and for nowasctrend indicator together with NRTR indicator

First version of AsctrendND EA.

Next version of AsctrendND EA (verion 1.02) with TrendStrength filter added. 

BRAINTRADING SYSTEM

  • BrainTrending indicators to download with template.
  • Rules to trade manually
  • How to install  
  • TSD DS jurik BrainTrading system - the key thread
  • TSD BrainTrading Stochastics system - the post
  • BrainTrading Semi-Manual EA for M30 timeframe system - the thread 
  • The differences between Brainwashing and BrainTrading system - the post.

How To Create Your Own Manual Trading Signal System Based On Indicators From MT5 CodeBase - Instruction For Non-Programmers

  • more to follow 

Sergey Golubev
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Sergey Golubev
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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:

 


Sergey Golubev
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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

================================

The beginning:

  1. Market condition indicators/tools thread  
  2. MaksiGen Trading system (light Paramon): many variations of the system - the thread
  3. How to use Support and Resistance Effectively - educational thread
  4. Market condition and EAs thread 
  5. Trend indicators thread  
  6. Forex Market Conditions, a graphic depiction - the thread 
  7. Evaluation of the market condition using six SMA indicators thread 
  8. Multi-indics indicators thread 
  9. Candle time tools thread

================================

Market condition

  • the theory with examples (primary trend, secondary trend) - read staring from this post till this one
  • Summary about market condition theory is on this post 
  • Practical examples about every market condition case by indicators: starting from this page till this one
     
  • trendstrength_v2 indicator is here,
     
  • AbsoluteStrength indicator new version is here
  • AbsoluteStrength indicator old version is on this post

  • AbsoluteStrengthMarket indicator is here to download.

  • good feature in Metatrader 5: moving  stop loss/take profit by mouse on the chart (video about howto) 

  • predictions are very different thing from technical/fundamental analytsis the post with explanation 

  • Technical vs. Fundamental; Short-Term vs. Medium-Term vs. Long-Term; Discretionary vs. Automated - the post

  • Market condition setup (indicators and template) is here
     

================================ 

3 Stoch MaFibo trading system for M5 and M1 timeframe 

================================  

PriceChannel ColorPar Ichi system.

 

================================ 

MaksiGen trading system 

================================ 

 Merrill's patterns are on this page.

 

================================

Divergence - how to use, explanation and where to read about.

  

================================

Scalp_net trading system

  • template/indicators and how to use are on this comment.

  • scalp_net_v132_tf EA is on this post with optimization results/settings for EURUSD M5 timeframe
     
  • possible settings #1 for this EA for EURUSD M5 timeframe with backtesting results is on this post.
     

================================  

MTF systems 

more to follow ...

================================

MA Channel Stochastic system is here.

================================

Ichimoku


The beginning

  1. Simple Ichimoku System
  2. Simple Ichimoku System - rules for the systems
  3. Simple Ichimoku Scalping 

After


Sergey Golubev
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Learning the Ichimoku components

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:

  1. Tenkan Sen - Turning line
    A moving average of the highest high and lowest low over the last 9 trading days.
  2. Kijun Sen - Standard line
    A moving average of the highest high and lowest low over the last 26 trading days.
  3. Senkou Span A - 1st leading line
    The average of the Tenkan Sen and Kijun Sen, plotted 26 days ahead.
  4. Senkou Span B - 2nd leading line
    The average of the highest high and lowest low over the last 52 days, plotted 26 days ahead.
  5. Chikou Span - Lagging line
    The closing price plotted 26 days behind.

The area between the two Senkou Spans is called the Kumo (Cloud). 


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Sergey Golubev  

Forum on trading, automated trading systems and testing trading strategies

Press review

Sergey Golubev, 2018.05.30 16:24

USD/CAD Intra-Day FundamentalsOvernight RateBoC Rate Statement and range price movement 

2018-05-30 15:00 GMT | [CAD - BoC Overnight Rate]

  • past data is 1.25% 
  • forecast data is 1.25%
  • actual data is 1.25% according to the latest press release

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.

==========

From official report :

  • "The Bank of Canada today maintained its target for the overnight rate at 1¼ per cent. The Bank Rate is correspondingly 1½ per cent and the deposit rate is 1 per cent."
  • "Global economic activity remains broadly on track with the Bank’s April Monetary Policy Report (MPR) forecast. Recent data point to some upside to the outlook for the US economy. At the same time, ongoing uncertainty about trade policies is dampening global business investment and stresses are developing in some emerging market economies. Global oil prices have been higher than assumed in April, in part reflecting geopolitical developments."
  • "Inflation in Canada has been close to the 2 per cent target and will likely be a bit higher in the near term than forecast in April, largely because of recent increases in gasoline prices. Core measures of inflation remain near 2 per cent, consistent with an economy operating close to potential. As usual, the Bank will look through the transitory impact of fluctuations in gasoline prices."
  • "Overall, developments since April further reinforce Governing Council’s view that higher interest rates will be warranted to keep inflation near target. Governing Council will take a gradual approach to policy adjustments, guided by incoming data. In particular, the Bank will continue to assess the economy’s sensitivity to interest rate movements and the evolution of economic capacity."

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USD/CAD M1: range price movement by BoC Overnight Rate news event 

Brainwashing system by Metatrader 5

==========

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:

  1. Brainwashing. Trades: manually and using EAs (MT4)
  2. Brainwashing EAs - the thread (MT4)
  3. Brainwashing: system setup for trading manually and for EAs (MT4) - the thread 
  4. Brainwashing: system development (MT4) - the thread

Sergey Golubev
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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]

  • past data is 18.3K
  • forecast data is 18.8K
  • actual data is 12.0K according to the latest press release

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.

==========

From official report :

  • "Employment increased 12,000 to 12,518,300. Full-time employment decreased 20,600 to 8,521,400 and part-time employment increased 32,600 to 3,996,900.""Unemployment decreased 26,800 to 714,600. The number of unemployed persons looking for full-time work decreased 11,200 to 494,300 and the number of unemployed persons only looking for part-time work decreased 15,600 to 220,300.""Unemployment rate decreased by 0.2 pts to 5.4%."

==========

AUD/USD M15: range price movement by Australia Employment Change news event 

AUD/USD chart by Metatrader 5

AUD/USD chart by Metatrader 5

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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 systems for MT4/MT5:

The beginning

  1. ASCTrend system, the beginning, part #1
  2. ASCTrend system, the beginning, part #2
  3. ASCTrend system, the beginning, part #3
  4. ASCTrend system, the beginning, part #4 
  5. Digital ASCTrend (Digital Filters with ASCTrend system combined).
  6. LabTrend (LabTrend indicators, LabTrendZigZag, templates, Labtrend EAs) - the thread 

After


Sergey Golubev
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Market condition articles - 

============

Market Condition

The beginning:

  1. Market condition indicators/tools thread 
  2. Market condition and EAs thread 
  3. How to use Support and Resistance Effectively - educational thread 
  4. Trend indicators thread

After

  1. Market Condition Evaluation (2 EAs were created) - the summary 
  2. Market Condition Evaluation based on standard indicators in Metatrader 5 - the key thread 
  3. Market condition - AbsoluteStrength indicator - the page

============

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