Free to Download from MT5 CodeBase X-bars Fractals - allows drawing the so-called asymmetric fractals by displaying different
number of bars on the left and the right of the extremum-----------------How to Use
Forum on trading, automated trading systems and testing trading strategies
Expert Advisors: Exp5-VirtualTradePad for mt5 v 4 (Contest version)
newdigital, 2014.05.10 12:02
The More Intelligent Trailing Stop
The Flaw in Trailing Stops
Trailing stops are a more advanced type of stop loss order that
adjusts itself to a more favorable rate as a trade moves in our favor.
The result is a reduced stop loss (reducing risk) that is based solely
on how price moves. It is at that moment that a traditional trailing
stop shows its flaw. The stop moves to a level based on how far a trade
moves in our favor, rather than moving based on key price levels. All
support and resistance analysis previously performed is thrown out the
window as our stop moves freely to a random level X pips away from the
currency pair’s high water mark.
Therefore our stop we set beyond the most recent swing low will suddenly
move to a level above the swing low and be at much greater risk of
being hit by a sudden downward whipsaw.
Trailing Stop Getting Whipsawed on USD/CNH :
Manual Trailing Stop
So what can we do about trailing stops’ tendency of getting stopped out
too early, but still have the benefits of reducing our risk during the
life of our trades? The secret is in manually trailing our stop losses
ourselves, always basing our stops around support and resistance levels
along the way. A rare example of having your cake and eating it too.
Let’s take a look.
Manual Trailing Stop in an Uptrend :
The image above shows the same trade we placed on the USD/CNH, but with
much better results. Rather than using a traditional trailing stop that
blindly moved up as price moved up, we moved our stop only when a new
swing low was created. We set our stop below each new swing low as price
progressed and were able to ride this monster uptrend 1500 pips before
being stopped out.
It can take some time to be able to “eyeball” significant swing highs
and lows and know exactly when a stop should be moved.
The Asymmetrical Fractal
A fractal is a tool that draws an arrow on each candle that’s highest
price is higher than the high of the two candles to the left and two
candles to the right. It also draws arrows on each candle that’s lowest
price is lower than the low of the two candles to the left and two
candles to the right. It can be used to note potential turning points in
the market, or in this case, can be used to identify swing highs and
swing lows that we can base our stop off of.
Some settings will create less fractals than the traditional version due
to the stipulation that the candle’s high or low price must be higher
or lower than the previous 5 candles and the following 9 candles. Now
that we see the asymmetric fractals on our charts, we can see their
value immediately. Each time we see a fractal, that is a level where we
could manually move our stop since it is a significant swing high or
swing low. I’ve overlaid our fractals on to our USD/CNH chart used
earlier to show how our manual trailing stop moved almost 100% in sync
with the fractals created over the same period:
The Buck Stops Where?
Hopefully, this article has given us a better way to trail our stops. We
always want our stop to be beyond the most recent swing high or swing
low, and the asymmetric fractals can help identify those levels.
newdigital, 2014.05.11 15:19
RSI Tactics For Forex Trends
RSI is a momentum oscillator that has become a
staple for technicians across markets. While most traders may know how
to read RSI, there are some tactics that can be employed for trending
markets. Today we will continue our look at indicators by reviewing RSI
divergence in trending market.
RSI and the Trend
Normally when traders first use RSI they immediately gravitate to trading every overbought or oversold crossover
the indicator offers. While there are merits to considering a crossover
based strategy, it is important to help filter these signals with the
trend. Using the example below, we can see the EURUSD
currency pair trending towards higher highs. At the same time, by the
design of the indicator, RSI can remain overbought for an extended
duration as price continues higher.
Knowing this, traders should avoid RSI signals to
sell as prices continue upward towards higher highs. So how can traders
use RSI in a strong trending market?
Positive RSI Divergence
is a great tool for trend traders to use to help filter RSI entry
signals. The word divergence implies that we are looking at price
separating from our indicator. This can easily be identified on the
chart by identifying two points to begin on our graph. In an uptrend, if
price is retracing and moving towards a lower low but RSI is forming a
higher low this can be used to trigger fresh buy orders. The idea is to
buy when momentum is returning to the market. As RSI moves higher it can
pinpoint just that.
Below we have an example of positive divergence and
RSI at work. There are two potential entries highlighted below. The
first uses a traditional RSI crossover for entry. If stops are placed
below a swing low, traders would have been exited for a loss on this
position. From this point, as the market continues toward a lower low,
RSI begins to form a higher low. This is a strong signal that momentum
is returning in the direction of the trend. Traders then have the
ability to trade the next RSI signal and enter the market upon the
Trading a RSI Strategy
newdigital, 2014.05.11 15:39
Fundamental analysis is the study of statistical reports and
economic indicators of countries to trade currencies more effectively.
Changes in interest rates, employment reports, and the latest inflation
figures, all fall under the purview of fundamental analysis, which forex
traders must pay close attention to, because they can have a direct
bearing on the value of a nation’s currency. Data used in forex
fundamental analysis can be classified by the degree to which they
affect the market:
Given the importance of these indicators, it is necessary to closely
follow economic calendars, and know beforehand when they are scheduled
for release. The most powerful indicators that move forex market
Traders, who rely on fundamental analysis to study markets, will
typically create models to formulate a trading strategy. These models
generally utilize a host of empirical data and try to forecast market
behavior and estimate future currency levels. This information is then
used to draw out specific trades that best exploit the situation.
Forecasting models are as varied and numerous as the traders that create
them. Two people can analyze the exact same data and come up with two
completely different conclusions about how it will impact the market.
Therefore is it important to understand what is more relevant to the
current market and economic conditions, and not succumb to ‘paralysis by
Something Interesting in Financial Video May 2014
newdigital, 2014.05.12 08:54
Ichimoku Kinko Hyo Trading System
A brief look at the terminology, signals and methods for taking trades using Ichimoku Kinko Hyo.
More video on this subject:
Ichimoku threads/posts on mql5.com forum
Ichimoku indicator description
How to Start with Metatrader 5
newdigital, 2013.08.04 18:27
If you are totally new to this website and
there are some pages which will help you to start :
I want the guide to offer signal
newdigital, 2014.01.16 11:12
newdigital, 2014.01.16 11:15
newdigital, 2014.01.16 11:18
newdigital, 2014.05.13 09:38
The Three Most Popular Indicators for Day-Trading
The first indicator is more than an indicator, and closer to a
‘field-of-study’ within technical analysis. Because trading on
short-term time frames exposes traders to the complexity of ‘lag’ within
a market, price action is one of the more popular ways of performing
technical analysis with a short-term approach.
The reason this is so popular is because price action removes
technical indicators from the equation and instead focuses on price and
price alone. Price action can be used to grade trends, identify support
and resistance levels, and to show traders potential entry opportunities
Where price action can come in as especially valuable for a short-term
trader is in the realm of trade and risk and trade management. By
noting price levels with which reversals or changes in market direction
have taken place in the past, traders can look to place stops on
positions so that if the market breaks against them (if a new low is put
in while in a long position, or a new high while in a short position),
the trade can be closed in an effort to mitigate the loss.
If the market does trend in the direction that you’re looking for, price
action can also help with adjusting stops and profit-taking.
Short-term traders will often look to execute a quick break-even stop to
remove their initial risk from the trade. And after prices do continue
to move, traders can look at moving the stop even deeper in-the-money as
the trade works in the trader’s favor.
Another indicator that’s simple to use and attempts to marginalize the
lag that is ever-present with the usage of indicators, the moving
average is a common chart component of short-term traders.
Moving averages are commonly used for trend diagnoses, so that if
prices are above the moving average the trend is diagnosed as being
‘up,’ and if prices are below the trend is considered being ‘down.’ This
can work phenomenally with a multiple time frame approach in which
trends are being graded on a longer-term chart (like the hourly or
4-hour), and entries performed on the shorter-term chart.
Traders can also use moving averages to trigger into new positions.
The moving average crossover is one of the more common ways of doing so
and with this method; traders are simply looking for price to cross the
moving average to initiate the position.
Support and Resistance via Psychological Whole Numbers, and Pivot Points
Have you ever been in a trade that’s working out great, only to see
that up-trend stop dead-in-its-tracks? And after price struggles to
continue moving up, it begins to oscillate before reversing and moving
This is the story of support and resistance, and to short-term traders
this can take on extreme importance because failure to see ‘the bigger
picture’ can lead to confusion and losses on the shorter-term charts.
There are numerous ways to identify support and resistance, and
traders can use price action to validate any particular level; but this
really only comes into play after-the-fact. Of particular interest to
short-term traders are ‘psychological whole numbers.’
Psychological whole numbers are simply even, rounded values on the
chart. As an example 1.3900, 1.3800 and 1.3700 are ‘round’ whole numbers
in EURUSD, as each of these prices end in ’00.’ But we can take this a
step further with the values mid-way between these three levels, 1.3850
and 1.3750 are also ‘rounded whole numbers.’
Take a look at the most recent move in EURUSD in the chart below, and
notice how even in a strong-trending market the level of 1.3850 offered
temporary support as the pair could not break through. Eight hours later
that momentum came back in the market as the level finally yielded to
selling, only to see 1.3750 come in as support shortly thereafter.
At this point, the pair has still failed to break below 1.3750 as
support has come into the market after the most current 200+ pip run to
Will every price ending in ‘50’ or ‘00’ elicit support or resistance?
No. But short-term traders need to remain cognizant of the potential for
support and resistance to develop at these values as trends move into
If a trend appears as though it may have run into a brick wall of
support or resistance, traders can use this opportunity to scale out of a
position, adjust stops, and or plan re-entries after prices finish
retracing and continue moving in the trend-side direction.
Can you change the ratio in which a signal is subscribed to?
angevoyageur, 2014.02.04 13:31
You have only 2 ways to act on the calculated ratio :
Different Standard Lot Size between subscriber broker and signal broker
angevoyageur, 2014.02.15 10:18
Metatrader 4 Signal Lot Size not copied?
newdigital, 2013.08.14 07:40
And there is some changes related to lot size/volume made in one of the build of Metatrader:
Signals: Changed the algorithm for calculation of the copied
deal's volume in case a Signal Source and a Subscriber have different
leverages:Current algorithm: A deal volume is changed in
direct ratio to the correlation of a Signal Source's leverage with a
Subscriber's one. It means that if a Signal Source having a leverage of
1:100 opens a deal of 1 lot, a Subscriber having a leverage of 1:500
will open a deal of 5 lots in case of 100% copying and a deposit
matching by size and currency. A subscriber having a leverage of 1:10
will open a deal of 0.1 lots in similar conditions.New algorithm: If
subscriber's leverage exceeds the one of the Signal Source, it does not
affect a volume of a copied deal. Otherwise, the deal volume is changed
in direct ratio to the correlation of a Signal Source's leverage with a
Subscriber's one. It means that if a Signal Source having a
leverage of 1:100 opens a deal of 1 lot, a Subscriber having a leverage
of 1:500 will open a deal of 1 lot in case of 100% copying and a deposit
matching by size and currency. A subscriber having a leverage of 1:10
will open a deal of 0.1 lots in similar conditions
And the main page for subscribers to understand about which lot size they will have when subscribe - this one https://www.metatrader5.com/en/terminal/help/signal_subscriber (started from the words "Copying Trading Operations and Volume Calculation").
Just for information.
newdigital, 2014.05.15 12:59
A Quicker Trade Signal Using MACD
How to Start with MT5, a summary !
angevoyageur, 2013.03.15 16:12
How to start with MT5 platform : summary.
As our topic about "How to start with Metatrader 5" is going to be huge, here you find a summary, with main links.
Work in progress, stay tuned :-)