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Market Condition Evaluation based on standard indicators in Metatrader 5 - page 3

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Sergey Golubev
Moderator
93726
Sergey Golubev 2013.01.02 16:10  

1.2. Secondary trend.

Some people may ask:
"that is fine but what ... if signal line (dotted line) is above main line and both lines are fall but both lines are above level 50?"

Good question.
It is secondary trend.

There are many kinds of secondary trend but we will discuss Correction and Bear Market Rally.

This is Correction:

  

 

Correction is the following: it is still uptrend (all lines are above 50) but all the lines are moved on downtrend way. We will have downtrend when those lines will cross level 50 from above.
This is correction.

And this is Bear Market Rally:



 

Sergey Golubev
Moderator
93726
Sergey Golubev 2013.01.02 16:31  
newdigital:

1.2. Secondary trend.

There are many kinds of secondary trend but we will discuss Correction and Bear Market Rally. 

 

People are calling Correction and Bear Market Rally using just one word for both: correction.
Programmers are having different name for it: counter trend.
So, if someone is telling: "I have counter trend EA based on stochastic indicator" - we know what he is talking about.

There are some more kinds of secondary trend: non-trading, ranging and more.
But we will discuss it when we will make some explanation about divergence.

By the way, what is the most great indicator to estimate primary and secondary trend?
This is standard indicator in MT5:
MACD

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

Some people suggested to me to write some article about. But I am not ready yet. Besides, what I am explaining here is my practical knowlegde.
may be, later - I will write something.

More to follow. 

 

Sergey Golubev
Moderator
93726
Sergey Golubev 2013.01.02 16:37  

Some people say that it is much more easier to trade on trend following way than on breakout way.
That is the true.
But to use trend following way of trading - we should know and understand market condition (primary trend, secondary trend, non-trading, divergence ... more).
And to use indicator in breakout way (we will discuss it later) - we just need to be comfortable with support/resistance lines incl trend line (which is much more practically complicated).


========

I remember ... some trader was saying: "I do not use any indicator to trade - all that I need is just chart with the price". Yes, it may be the true: he is using support/resistance lines (in case of breakout), and he understands market condition + he knows some price patterns. Yes, it is possible but this knowledge may come with experience only sorry.

 

Sergey Golubev
Moderator
93726
Sergey Golubev 2013.01.02 17:22  

I will continue tomorrow with overbough/overlold, and with breakout.

And for now - I want to upload 2 images - this is example of breakout using MaksiGen indicator (I made the entry to CodeBase so we all can download it soon).
All the lines on those charts were drawn by this indicator (support/resistance lines).

 

 

 

 

 

 

Sergey Golubev
Moderator
93726
Sergey Golubev 2013.01.03 10:11  

lyrical depression

Some intyeresting unusual situation is going on for AUDUSD for now on D1 timefrrame, we can see here:

 

I call it as "someone moved the market" :)

 

 

Sergey Golubev
Moderator
93726
Sergey Golubev 2013.01.03 15:20  

Just to move it forward in more quickly way on this thread - I will make some short explanation. 

2. Overbough/oversold

read this post with image.

Some people call overbough/oversold as 'top-and-bottom'.
If we can watch TV for forex news or some analytics program so they are permanent talking and answering the question: "is it already bottom?" :)

By the way, many traders do not like this term (top and bottom) and using it in fully overbough/oversold just to filter some false signals. 

3. Breakout

read same post with image.

Breakout way may be used together with support/resistance lines and some people call it as 'price action'.
It is most profitable but most difficult way of trading.
Traders (who are having this trading style) are really professional guys working under famous slogan which was made V. Lenin in the beginning of the last century:
Better Less But Better  

:) 

More to follow. 

 

Sergey Golubev
Moderator
93726
Sergey Golubev 2013.01.06 14:29  

On the next few posts we will discuss about how to estimate flat and ranging market condition.
Which indicators to be used and how to do it.
 

Liping Wang
3657
Liping Wang 2013.01.06 17:21  

Thank you newdigital ! I love them.

Java de Carvalho
1356
Java de Carvalho 2013.01.07 14:19  
Congratulations on topic, ND. I'm new and I'm learning a lot from your posts. Eager to create an EA conservative, yet efficient. hug
Sergey Golubev
Moderator
93726
Sergey Golubev 2013.01.07 16:04  
alemparaiso:
Congratulations on topic, ND. I'm new and I'm learning a lot from your posts. Eager to create an EA conservative, yet efficient. hug

Hi alemparaiso,

I am not a coder. Of course, I can code something for MT4 - just very simple things. And I understand something from inside the code for MT4. But not for MT5.
So, I was trying to use MT5 Wizard and Molanis EA builder (there are some articles about those MT5 EAs' builders somewhere here on mql5.com ).
I created 3 versions as the drafts, and I am optimizing the settings for now.
I am planning to upload 3 final versions: one for scalping, next one is for normal ttrading, and last one is for classical trading style.

Strategy tester in MT5 is much more advanced but it takes time anyway so ... I am doing optimization of the settings for the second day already.
Of course, I will upload everything on this thread if my experiment will be sucessful for example.


 

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